Featured Articles
“Harnessing international skills for national development"
BUSINESS NEWS | GHANA AND BEYOND
The central bank’s The central bank’s Monetary Policy Committee (MPC) has lowered the policy rate by 100 basis points at 13.5 percent from 14.5 percent. Announcing the decision at its 100th MPC press conference, Governor of the Bank of Dr. Ernest Addison on May 31 said this was based on risks to the country’s inflation outlook remaining muted in the near term. He added that consumer inflation is expected to remain within the central bank’s target band of 8% plus or minus two percentage points in the next quarter after falling to 8.5% in April 2021 due to lower food price inflation.
Ghana’s trade balance narrowed in the first four months of this year to 1.0% of Gross Domestic Product, as imports continued to surge, data from Bank of Ghana has revealed. However, the country continued to enjoy trade surplus since first achieving that in 2018. The trade balance that is the difference between exports and imports stood at $759 million in April 2021. Compared to same period last year, the trade balance was $1.0 billion, that is equivalent to 1.3% of GDP. Total exports was estimated at $5.13 billion in the first four months of this year, whilst total imports including oil stood at $4.37 billion.
ExxonMobil, a US-based oil and gas firm has exited Ghana’s oil fields and subsequently relinquished 100 percent of its oil exploration rights in Deepwater Cape Three Point Block in the Western Region. A letter issued to Ghana’s Ministry of Energy, Dr. Matthew Opoku Prempeh and copied to the Petroleum Commission and Ghana National Petroleum Corporation, (GNPC) explained, the company was unwilling to enter an extension of the contract originally signed in 2018. 0“EMEPGL hereby notifies the Republic that it has determined not to enter into the First Extension Period, and hereby voluntarily surrenders and relinquishes one hundred percent (100%) of its rights in and to the DWCTP Contract Area,” portions of the letter read.
Oasis Capital, a fund manager of Oasis Africa VC Fund (OAF) has invested an amount of US$1 million in appsNmobile Solutions, a financial technology company in Ghana. The investment is to enable appsNmobile to position itself as a dominant player in the payments space in Ghana and the sub-region. A statement from appsNmobile explained that part of the capital will also enable it to meet the Bank of Ghana’s regulatory capital requirement as well as provide other needed logistics for the business.
The Institute for Energy Security (IES) has charged government to take immediate steps to actualize its directive to Eni Ghana Exploration and Production Limited and Springfield Exploration and Production Limited to unitize the Afina discovery and the Sankofa field. According to the Institute, urgent action is required from government given that time is of essence in maximizing the exploitation of the country’s hydrocarbon resources for the benefits of the citizenry
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
Do you want to know more about Investing in Stocks, Mutual Funds, Cryptocurrencies? Or do you want to learn about the Real Estate Market in Ghana? Perhaps you want to know how to achieve Financial Independence? Invest in Gh has webinars to educate you on all these topics and more…
Visit the YouTube Channel at https://youtube.com/InvestinGh to learn more…
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7444 Sell 5.7502
GB£GH¢ Buy 8.1628 Sell 8.1716
CHFGH¢ Buy 6.3907 Sell 6.3970
AUD$GH¢ Buy 4.4438 Sell 4.4494
CAD$GH¢ Buy 4.7563 Sell 4.7606
JP¥GH¢ Buy 0.0525 Sell 0.0525
NZDGH¢ Buy 4.1794 Sell 4.1847
ZARGH¢ Buy 0.4175 Sell 0.4179
EU€GH¢ Buy 7.0230 Sell 7.0305
CHN¥GH¢ Buy 0.9017 Sell 0.9025
GH¢CFA Buy 93.3016 Sell 93.4013
GH¢NG₦ Buy 71.3605 Sell 71.6998
CRYPTOCURRENCY MARKET
Bitcoin $37,325.07
BUSINESS NEWS | GHANA AND BEYOND
Insurance leader, SIC Insurance Company continued its recent performance, following an appreciable outing last year. The company registered a profit of GH¢5.8 million in 2020, down from the GH¢9.3 million recorded in 2019. This has subsequently impacted positively on its share price though still below its market value. According to its 2020 unaudited financial statement, the insurance giant performance was affected by covid-19 pandemic, largely due to claims from customers which almost doubled to GH¢36 million in 2020, from GH¢18.4 million in 2019. Nonetheless, net premium written went up by 14.5% to GH¢122 million in 2020. At the same time, underwriting loss also inched up by 55% to GH¢9 million. Its shareholder funds however stood at GH¢273.1 million in 2020, compared with GH¢269 million in 2019.
Senior Economic Analyst with Databank, Courage Kingsley Martey, is confident the Cedi will sustain its stability against other major currencies throughout the year 2021. The Cedi, which began the year selling at GH¢5.76, has remained strong so far against the US dollar. However, there are concerns that it could come under pressure when the global economy fully recovers from COVID-19 and imports pick up. Speaking at the Pension Strategy Conference organized by AXIS pensions, Mr. Martey noted that his projections about the cedi are based on measures implemented so far by the Bank of Ghana.
The construction of a new Air Traffic Control Tower (ATC) for the Kotoka International Airport (KIA) is expected to start in June 2021, Kwaku Ofori Asiamah , Transport Minister designate has revealed. “ICAO has issued a warning to us that we should change the tower. We have no option. I have just informed the Minister for Finance that by June we have to start the construction of a new air traffic control tower and government must provide the funding for it,” Mr. Asiamah told Parliament’s Vetting Committee. The current ATC tower is located on top of the Ghana Civil Aviation Authority’s offices adjacent the Terminal 2 of the KIA. AviationGhana sources say a site within the KIA enclave has already been selected for the project.
Bitcoin (BTC) fell 5.4% to about $43,000, the lowest in three weeks. Price move appears to be a continuation of last week’s trend, when bitcoin fell amid concerns that rising U.S. Treasury bond yields might prompt the Federal Reserve to tighten monetary policy sooner rather than later to keep inflation from rising out of control; analysts have said such a move could prompt a sell-off in risky assets including stocks and bitcoin. Bitcoin failed to get a lift last week from ostensibly bullish news including Coinbase’s march toward a public stock listing and a report from JPMorgan, the biggest U.S. bank, arguing that investors could allocate 1% of their portfolios to the largest cryptocurrency. Bitcoin was down 24% in the seven days through Sunday before recovering to close the weekend at $45,300. It’s the worst weekly performance since March 2020. Prices have declined on six of the past seven days.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
Do you want to know more about Investing in Stocks, Mutual Funds, Cryptocurrencies? Or do you want to learn about the Real Estate Market in Ghana? Perhaps you want to know how to achieve Financial Independence? Invest in Gh has webinars to educate you on all these topics and more…
Visit the YouTube Channel at https://youtube.com/InvestinGh to learn more…
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7345 Sell 5.7403
GB£GH¢ Buy 7.9899 Sell 7.9991
CHFGH¢ Buy 6.3266 Sell 6.3334
AUD$GH¢ Buy 4.4488 Sell 4.4547
CAD$GH¢ Buy 4.5294 Sell 4.5341
JP¥GH¢ Buy 0.0539 Sell 0.0539
NZDGH¢ Buy 4.1763 Sell 4.1819
ZARGH¢ Buy 0.3806 Sell 0.3810
EU€GH¢ Buy 6.9508 Sell 6.9581
CHN¥GH¢ Buy 0.8855 Sell 0.8864
GH¢CFA Buy 94.2724 Sell 94.3714
GH¢NG₦ Buy 70.9799 Sell 71.5446
CRYPTOCURRENCY MARKET
Bitcoin $46,268.99
BUSINESS NEWS | GHANA AND BEYOND
The Ghana cedi ended last year with a depreciation rate of 3.93 percent to the US dollar, making it one of the best-performing currencies in Sub Saharan Africa. The impressive performance also makes it the best since 2017 when it depreciated by only 4.88 percent. At the forex bureau, the rate of depreciation was even lower at 2.2 percent. Joy Business learnt the local currency actually appreciated in the final two weeks of December 2020 at the forex bureau, from a depreciation rate of 3.1 percent. Analysts believe that the cedi has benefited from a myriad of factors including the Bank of Ghana ’s Forex Forward Auction and the diversified exports.
The government expended GH¢21 billion to clean up the banking sector, the President, Nana Akufo-Addo has announced. Delivering his final ‘State of the Nation’ address to the 7th Parliament , he said “an amount of GH¢21 billion was used to fund the cleaning up exercise. These are painful lessons we all have to imbibe”. The Bank of Ghana embarked on a banking sector clean-up, recapitalization, and other regulatory reforms from mid-2017 to end-December 2018 in line with its mandate to promote the safety, soundness, and stability of the financial system to support economic growth.
The management of the Social Security and National Insurance Trust (SSNIT) has increased monthly pension by 10 per cent for the year 2021. A statement issued and signed by SSNIT indicated that the increment was in accordance with Section 80 of the National Pensions Act 2008 (Act766). This means that current pensioners on SSNIT Pension as of December 2020 will have their pensions increased by a fixed rate of 9.34 percent. An additional flat amount of GH¢6.47 would also be paid per pensioner. Accordingly, pensioners on the current minimum monthly pension of GH¢300.00 will have their pensions increased to GH¢334.49, the statement said. It added that all fresh pensioners from January 2021 will receive a new minimum monthly pension of GH¢300.00. SSNIT is a Statutory Public Trust charged with the administration of the First-Tier Contributory Basic National Social Security Pension Scheme under the National Pensions Act, 2008 Act 766.
A floating regasification unit (FRU) that will allow Ghanaian customers to access Liquified Natural Gas (LNG) in the first quarter of 2021 is expected to arrive in the country on Thursday. The purpose-built FRU, which was built by Jiangnan Shipbuilding, a subsidiary of China State Shipbuilding Corporation, left the Jiangnan shipyard at the end of November. It is being delivered to the Tema LNG Terminal Company (TLTC), the first offshore LNG receiving terminal in sub-Saharan Africa, which is backed by two UK-based Africa-focused investment firms, Helios Investment Partners, and Africa Infrastructure Investment Managers (AIIM).
Bitcoin traded above $35,000 for the first time in Asia on Thursday, rising to a high of $38,000 and extending a rally that has seen the digital currency rise more than 800% since mid-March. The world’s most popular cryptocurrency crossed $20,000 for the first time ever on December 16, 2020. Bitcoin set a fresh all-time high for the period of December after rising 6.5% to $22,765 by 0833 GMT, just a day after smashing the US$20,000 milestone for the first time. The world’s highest-profile crypto-currency has gained more than 175% this year, buoyed by demand from larger investors attracted to its potential for quick gains and perceived inflation-hedging qualities.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7578 Sell 5.7636
GB£GH¢ Buy 7.8220 Sell 7.8310
CHFGH¢ Buy 6.5467 Sell 6.5531
AUD$GH¢ Buy 4.4812 Sell 4.4871
CAD$GH¢ Buy 4.5392 Sell 4.5439
JP¥GH¢ Buy 0.0558 Sell 0.0558
NZDGH¢ Buy 4.1926 Sell 4.1990
ZARGH¢ Buy 0.3827 Sell 0.3830
EU€GH¢ Buy 7.0903 Sell 7.0978
CHN¥GH¢ Buy 0.8912 Sell 0.8919
GH¢CFA Buy 92.4169 Sell 92.5147
GH¢NG₦ Buy 66.4589 Sell 66.7193
CRYPTOCURRENCY MARKET
Bitcoin $38,541.62
BUSINESS NEWS | GHANA AND BEYOND
The Bank of Ghana has new introduced guidelines for the government securities market, primary dealers and bond market specialists. The purpose of these guidelines is to guide the purchase of government securities in the domestic market to the provisions in the Public Financial Management Act, 2016 (Act 921). According to the Central Bank, the guidelines shall be used with reference to other directives issued by the Ministry of Finance. Also, securities issued shall be denominated in the local currency-Ghana Cedis (GHS) except when explicitly stated by the Ministry of Finance. Importantly, all payments in respect of subscription and redemption shall be made in the currency of issuance.
AngloGold Ashanti said costs and production are on track to meet guidance, and that full-year 2020 free cash flow generation will be the strongest in almost a decade, enabling the miner to double the dividend pay-out ratio. The Company’s guidance was initially withdrawn in March this year due to the uncertainty created by the COVID-19 pandemic. The revised guidance was issued on 21 September 2020, pegging production for the year between 3.03Moz and 3.10Moz, and all-in sustaining costs between $1,060/oz and $1,120/oz.
A report released by the Natural Resource and Governance Institute (NRGI) has shown that Ghana has so far accrued an amount of US$5.2 billion in the sale of crude oil. According to NRGI, the money was generated between 2011 to 2020. The NRGI’s report explained the generation came from the sale of 73 cargos of crude oil by the Ghana National Petroleum Corporation (GNPC). The report also noted the sale which was realized in the second quarter of 2020 was made up of 71.1 million barrels with a total value of US$5.2 billion. NRGI’s latest report is titled, “Ghana’s Oil Sales: Using Commodity Trading Data for Accountability.”
Traders in the Sekondi-Takoradi Metropolis have attributed the marginal price increase of foodstuffs and other commodities to the outbreak of COVID-19 and the festive season.According to the traders, the prices of foodstuffs started increasing as a result of COVID-19 and has since not changed much even in the yuletide. A visit to the Takoradi market circle by the Ghana News Agency indicated that prices of many commodities had marginally increased while some foodstuffs remained stable. Meanwhile, vegetables like carrots, onions, green pepper, cabbage, lettuce had a lot of demand as people were busily buying them. Food stuffs such as rice, flour, oil and tomato paste as well as spices were also in height demand.
Invest for Jobs, an initiative of the German Federal Ministry for Economic Cooperation and Development has organised a conference cloud impact for Ghanaian businesses. This is in partnership with getiNNOtized Ltd., a leading cloud computing provider operating in Ghana and Amazon Web Services, re/start program. In the advent of the Covid-19 Pandemic, IT tools have become a critical need for many businesses in growth sectors, but the demand far outweighs the supply. The conference is thus, an opportunity for companies to engage with leading cloud computing providers. The aim is to connect the businesses to the right talent and solutions for their businesses. It is also an opportunity for businesses to engage in leading cloud computing providers.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7173 Sell 5.7231
GB£GH¢ Buy 7.6429 Sell 7.6517
CHFGH¢ Buy 6.4465 Sell 6.4528
AUD$GH¢ Buy 4.3053 Sell 4.3110
CAD$GH¢ Buy 4.4302 Sell 4.4345
JP¥GH¢ Buy 0.0552 Sell 0.0553
NZDGH¢ Buy 4.0271 Sell 4.0332
ZARGH¢ Buy 0.3910 Sell 0.3913
EU€GH¢ Buy 6.9856 Sell 6.9924
CHN¥GH¢ Buy 0.8738 Sell 0.8745
GH¢CFA Buy 93.8986 Sell 93.9982
GH¢NG₦ Buy 68.7054 Sell 68.8855
CRYPTOCURRENCY MARKET
Bitcoin $23,446.22
BUSINESS NEWS | GHANA AND BEYOND
President Akufo-Addo has officially commissioned New Okaff Industries Limited in the Ashanti Region, an industry operating under Government of Ghana’s One- District-One Factory initiative. New Okaff Industry which has about 200 employees and a production capacity of 5000 litres of AF Confidence per day, will manufacture soaps, sanitizers and detergents. It will as well produce anti-snake repellent, organic fertilizers and agrochemicals to enhance the work of farmers in the country. Commissioning the factory on yesterday, December 3rd, 2020, on day 3 of his 3-day tour of the Ashanti Region, the President stated that the One District One Factory (1D1F) initiative is in fulfilment of a 2016 campaign promise, whose aim is to establish, together with the private sector, at least one industrial enterprise in each of the administrative districts of the country.
Ghana is expected to deploy freight drone technology in the coming years to facilitate the timely movement of goods within the country. This follows the signing of a Memorandum of Understanding (MoU) between the country’s Aviation Ministry and International Freight Drone (IFD) organisation. IFD is expected to deploy freight drones that are capable of carrying 10-tons of shipping container over 700 kms, and build droneports at various parts of the country. Freight drone technology, when fully developed would help get finished goods and fresh agricultural products from the hinterlands to major towns and cities within minutes.
Over 1,000 victims of the Odawna Market fire will from Wednesday, December 02, 2020, receive a loan of about GH¢2,000 each from government. On Wednesday, November 18, over 3,000 traders had their wares destroyed by fire at the Pedestrian Shopping Mall close to the Kwame Nkrumah Interchange in Accra. The traders, some, who had stocked up new items in preparation for the Christmas season, and others, who had secured loans to run their businesses, lost everything in the fire, and appealed to government for support. Although President Nana Akufo-Addo subsequently directed the National Board for Small Scale Industries (NBSSI) to make available funds to support the affected traders, the Microfinance and Small Loans Centre (MASLOC), on their part, will commence the disbursement of a total loan of GH¢2 million to cater for one-third of these victims.
The District Chief Executive (DCE) of Ada West, Mr Adzoteye Lawer Akrofi believes the ratification of the mining leases to the Ada Songhor Salt Project will alleviate poverty among the youth and women by creating over 600 jobs.
Addressing the press, Mr Adzoteye Lawer Akrofi said poverty which happens to be the biggest problem in the district will be reduced significantly in the area with jobs set to be created for the people.
“The Songhor salt project certainly offers job opportunities to the youth and the women who will sell around and even those who own lands, the value shall be added to the lands and so all sort of jobs will be created,” Mr Akrofi said.
Mr Akrofi added that the Songhor salt project has the capacity of producing 2.3million metric tons of salt annually.
He noted that in the next three years, the project would be able to produce over one million metric tons as compared to the 60 per cent it produces currently.
The initial challenges of the Integrated Customs Management System (ICUMS) has been reduced by about 70 percent eight months into the introduction of the system. Mr Emmanuel Ohene, an Assistant Commissioner of Customs in charge of the Accra Sector Command, said the initial delay that users of the system faced when processing bill of entries for example was a thing of the past. Mr Ohene, who is also the Chairman of the Implementation Team of the Integrated Customs Management System (ICUMS), said it took about two hours to process a pre-manifest declaration once an importer through his or her agent submits documents in ICUMS that were not subject to any queries.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7113 Sell 5.7171
GB£GH¢ Buy 7.7012 Sell 7.7100
CHFGH¢ Buy 6.4155 Sell 6.4223
AUD$GH¢ Buy 4.2518 Sell 4.2575
CAD$GH¢ Buy 4.4311 Sell 4.4356
JP¥GH¢ Buy 0.0551 Sell 0.0551
NZDGH¢ Buy 4.0554 Sell 4.0609
ZARGH¢ Buy 0.3757 Sell 0.3761
EU€GH¢ Buy 6.9486 Sell 6.9560
CHN¥GH¢ Buy 0.8727 Sell 0.8736
GH¢CFA Buy 94.3009 Sell 94.4013
GH¢NG₦ Buy 68.4085 Sell 68.5835
CRYPTOCURRENCY MARKET
Bitcoin $19,317.19
BUSINESS NEWS | GHANA AND BEYOND
The International Monetary Fund (IMF) is predicting that Ghana’s fiscal deficit will reach 16.4 percent of GDP this year, the largest in the country’s history. The record deficit projection comes on the back of the devastating effect of the coronavirus pandemic, which caused a huge shortfall in government’s revenues amidst bigger-than-expected spending in a frantic effort to contain the spread of the virus. The extra expenditure includes the government’s provision of free electricity and water for Ghanaians to cope with the disruption caused by the virus, as well as loans to enterprises. Finance Minister Ken Ofori-Atta, in his mid-year budget presented in July, revised the country’s 2020 fiscal deficit projection from 4.7 percent to 11.4 percent of GDP to accommodate the fiscal impact of the pandemic.
The Minister of Finance, Ken Ofori Atta, is expected to present to Parliament next week Wednesday, October 28, 2020, an Advanced Budget; covering government spending for the first quarter of 2021. The expected presentation, known as Expenditure in Advance of Appropriation is a standard practice rolled out in election years to prevent transitional challenges in the smooth running of government for the first three months in the year after elections. This was made known by the Majority Leader and Minister for Parliamentary Affairs, Osei Kyei-Mensah-Bonsu on Friday, October 23, 2020, when he briefed Parliament on its activities in the coming week.
Ghana’s country risk index of 53.9% placed it first, ahead of four top West and Central African countries, according to assessment by Fitch Solutions, research arm of ratings agency, Fitch. This means the country is the best place to invest in the ECOWAS and Central Africa region since it has a lower risk elements for political, economic and operational. The country’s high score of both political and operational risk index propelled it to the first position, ahead of Gabon, Ivory Coast, Nigeria and Cameroon. According to Fitch Solutions, a high score index means a lower risk in terms of investment climate. The nation scored 69.7% and 72.9% for the short and long term political risk, while its 44.1% operational risk index score placed it higher than the other four countries assessed. For the economic risk index, the nation recorded 41% and 51.6% for the shorter and longer term respectively.
The World Bank is projecting a lower demand for oil next year, as the global economy recover from the impact of covid-19. It is also forecasting an average of US$44 per barrel of oil price for next year, up from an estimated US$41 per barrel 2020. “While metal and agricultural commodities have recouped their losses from the COVID-19 pandemic and are expected to make modest gains in 2021, energy prices, despite some recovery, are expected to stabilize below pre-pandemic levels next year”, the World Bank said. This means that the government will have to be modest in its petroleum price forecast for next year. The government had projected US$62 per barrel of crude oil in its 2020 Budget. The World Bank emphasized that demand is expected to rise only slowly as tourism and travel continue to be held back by health concerns.
The Ghana Revenue Authority’s goal of exceeding its revised 2020 target of GH¢42.7 billion Cedis as stated in the 2020 mid-year budget, is receiving a boost from higher than expected inflows from the Communication Service Tax (CST). This reduction in the Communications Service Tax from 9 % to 5 %, which took effect from September 15 this year, formed part of the government’s efforts to alleviate the plight of Ghanaians amidst the coronavirus pandemic. Even though the reduction was welcomed by the general public, some CSOs like the Tax Justice Coalition bemoaned the move saying it will negatively affect government’s ability to meet its revised revenue target for 2020.
President Nana Addo Dankwa Akufo-Addo , has commissioned 204 housing units, constructed in 9 months, under the National Mortgage and Housing Finance Initiative. Commissioning the housing units on Monday, 26th October 2020, on day 2 of his tour of Greater Accra, President Akufo-Addo described the completion of the 204 housing units as “one of the successes achieved during the 2 year pilot phase of the National Housing and Mortgage Fund (NHMF).” The project involves the construction of 204 houses, comprising one, two standard and expandable unit bedrooms for public sector workers. GCB Bank Limited will be underwriting the mortgages to public sector at rates far below market rates, and with longer tenor. In his remarks, the President stated that the country has a huge housing deficit, which has risen over the years, especially in the urban areas.
➖➖➖➖➖➖➖➖➖
Join another Invest in Gh webinar on November 1, 2020 @ 14:00GMT. Dr. Kenneth Donkor-Hyiaman (Real Estate Finance and Economics Lecturer, KNUST) will speak on the topic *“How to Start your own Real Estate Business” (How to flip houses and buy rental properties for a living)*. Visit *www.investingh.info* to register for free.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7046 Sell 5.7104
GB£GH¢ Buy 7.4292 Sell 7.4377
AUD$GH¢ Buy 4.0630 Sell 4.0684
CAD$GH¢ Buy 4.3165 Sell 4.3210
JP¥GH¢ Buy 0.0544 Sell 0.0545
ZARGH¢ Buy 0.3522 Sell 0.3526
EU€GH¢ Buy 6.7440 Sell 6.7511
CHN¥GH¢ Buy 0.8509 Sell 0.8518
GH¢CFA Buy 97.1630 Sell 97.2653
GH¢NG₦ Buy 66.6667 Sell 66.9295
CRYPTOCURRENCY MARKET
Bitcoin $13,016.56
BUSINESS NEWS | GHANA AND BEYOND
The Ghana Cocoa Board (COCOBOD) will next year inject US$200 million into domestic cocoa processing. The money will be given as a loan to augment the working capital of existing local processors that are struggling financially, as well as potential local processors. This amount, which is expected to be used to buy cocoa beans, will add some 50,000 metric tonnes of beans to the country’s local cocoa processing capacity.
Currently, COCOBOD has signed an agreement with Cargill to add a new line that will increase its annual processing volumes locally from 60,000 to 90,000 tonnes. President Nana Akufo-Addo in 2017 set the target of local processing to increase from the current 30% to 50% of the nation’s cocoa by the year 2022.
The $200 million and the expansion by international processors operating in the country are to facilitate the achievement of the government’s target.
The Electoral Commission (EC) has processed and cleared 12 presidential aspirants to contest in the 2020 general elections. They are; Alfred Walker; an independent candidate, President Akufo-Addo of the New Patriotic Party (NPP), Christian Andrews; The Ghana Union Movement (GUM), Brigitte Dzogbenuku; People’s Progressive Party (PPP), John Dramani Mahama; National Democratic Congress (NDC). The others include; Akua Donkor; Ghana Freedom Party, Nana Konadu Agyeman- Rawlings; National Democratic Party (NDP), Hassan Ayariga; All People’s Congress, Ivor Kobina Greenstreet; Convention Peoples Congress (CPP), Kofi Akpaloo; Liberal Party of Ghana, David Apasera; People’s National Convention (PNC) and Henry Herbert Lartey; Great Consolidated Popular Party (GCPP). Out of the total 17 aspirants who submitted their nomination forms to be considered as presidential candidates, the Commission disqualified five of them.
The International Monetary Fund is forecasting the price of crude oil in the range of US$40 to US$50 per barrel next year. This will not come as a good omen for the Ghanaian economy since oil price before covid-19 had been trading above US$60. The government of Ghana had projected US$62 per barrel of crude oil in its 2020 Budget. But covid-19 pandemic had made the forecast unachievable. Presently, a barrel of crude oil is hovering around US$40 per barrel. The IMF in its forecast said the outlook for oil demand remains grim amid new waves of coronavirus and uncertainty about U.S. fiscal stimulus and the U.S. presidential election. Brent crude stood at US $42.73 per barrel in London. The Fund does not see oil prices staging a dramatic recovery anytime soon
Beneficiaries of the Nation Builders’ Corps (NABCO) programme have been assured of permanent jobs in both public and private sectors. The NABCo programme currently offers temporal employment to over 23,000 trainees in the Ashanti region. Regional Coordinator of NABCO, Dennis Kwakwa, says government will transition trainees onto a permanent job scheme. The Nation Builders Corps is a government initiative which seeks to solve graduate unemployment in the country. Beneficiaries currently enjoy a fixed monthly stipend of GH¢700. Dennis Kwakwa however says government is working to engage the beneficiaries on permanent jobs in both public and private sectors.
The World Bank is supporting the extension of the Debt Service Suspension Initiative (DSSI) for Ghana and other countries by six months. By 2021 WBG and International Monetary Fund Spring Meetings, the World Bank will also determine if the economic and financial situation of developing and emerging economies requires to extend further the DSSI by another six months, with targeted complements to the April 2020 DSSI Term Sheet. This will cushion many developing countries including Ghana from shocks brought by COVID-19 that has slowed down the fiscal consolidation process.
Charge d’Affaires of the Chinese Embassy to Ghana Mr. ZHU Jing, has pledged that the embassy will continue to deepen the long-existing diplomatic, trade, economic and commercial ties with Ghana. According to Mr. ZHU Jing, the Chinese Embassy will follow the well-established footprints of the former Ghanaian leader Dr. Kwame Nkrumah to deepen the diplomatic ties and leverage on already robust economic commercial, boost cultural and people to people exchanges. Speaking at the Launch of Commemorative Stamps ceremony for the 60th Anniversary of China-Ghana Relations on Tuesday, October 20, 2020 in Accra, Mr. ZHU Jing said “I’m sure the relationship between China and Ghana will continue to thrive for mutual benefit and prosperity”.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7037 Sell 5.7095
GB£GH¢ Buy 7.3978 Sell 7.4057
AUD$GH¢ Buy 4.0192 Sell 4.0243
CAD$GH¢ Buy 4.3442 Sell 4.3484
JP¥GH¢ Buy 0.0540 Sell 0.0541
ZARGH¢ Buy 0.3466 Sell 0.3469
EU€GH¢ Buy 6.7529 Sell 6.7589
CHN¥GH¢ Buy 0.8544 Sell 0.8551
GH¢CFA Buy 97.0509 Sell 97.1371
GH¢NG₦ Buy 66.7648 Sell 66.9400
CRYPTOCURRENCY MARKET
Bitcoin $11,937.43
BUSINESS NEWS | GHANA AND BEYOND
PZ Cussons Ghana Limited has announced that it has been de-listed from the Ghana Stock Exchange (GSE) effective Monday, October 19, 2020. The offer results and de-listing have been approved by the GSE, a statement said on Friday. “Offer Results out of a total of 2,079 shareholders represented in the register, 410 shareholders tendered a total of 8,830,143 shares valued at GH¢3,973,564.35, representing 53.37% of the total number of shares under the offer,” said the statement. PZ Cussons (Holdings) Limited, the majority shareholder therefore now holds 160,432,149 shares, representing 95.50% of the issued shares of PZ Cussons. The tendered shares have been transferred to the ownership of PZ Cussons (Holdings) Limited by the Registrar, UMB Registrars.
The full implementation of the African Continental Free Trade Area (AfCFTA) agreement on January 1, 2021, is expected to see a reduction in customs duties within Africa, Secretary-General of the AfCFTA Secretariat, Wamkele Mene, has said. According to him, the implementation of the agreement will also witness a reduction of unwanted trade barriers which will in turn be subsequently removed. Speaking in an interaction with journalists in Accra last week, Wamkele Mene explained the AfCFTA agreement will see traders within Africa experience a much regulated and efficient trade regime backed and administered by law.
The World Bank Group President, David Malpass, has said at the 2020 Annual Meetings Plenary that the global economy is expected to partly recover in 2021 from its worst recession since World War II. He suggested that there is a need to redouble efforts to alleviate poverty and inequality. Covid-19 has dealt an unprecedented setback to the global efforts to end extreme poverty, raise median incomes, and create shared prosperity, he noted. “The global economy is expected to partly recover in 2021 from its worst recession since World War II. Although it is growing again, global activity is expected to remain well below its pre-pandemic trend for a prolonged period. Developments thus far point to shallower recessions in advanced economies and a more robust rebound in China than previous estimates.
The First Lady, Mrs Rebecca Akufo-Addo , says Technical and Vocational Education and Training (TVET) is the surest path to equipping the Ghanaian youth with employable skills for the world of work. Launching the first-ever TVET Expo in Accra, Mrs Akufo-Addo said having worked with young women as the Executive Director of the Rebecca Foundation, she recognised the role of TVET in improving individual livelihoods and propelling national development.The TVET EXPO aimed to throw more light on the reforms and achievements in technical education and to help change the negative perceptions on the sector. It was on the theme: “Building a Robust TVET System to Transform Ghana”.
Notwithstanding improvements to Ghana’s credit referencing system, the central bank has indicated that some financial institutions have refused to subscribe to credit bureau services, contrary to the Credit Reporting Act 2007 (Act 726). This has been prevalent among the rural and community banks (RCBs) as well as microfinance institutions (MFIs).
The Bank of Ghana (BoG) stated in its latest credit referencing report that the low usage of credit reports emanates from the lack of understanding among financial institutions of the usefulness of credit reports.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7027 Sell 5.7085
GB£GH¢ Buy 7.4136 Sell 7.4221
AUD$GH¢ Buy 4.0434 Sell 4.0488
CAD$GH¢ Buy 4.3354 Sell 4.3397
JP¥GH¢ Buy 0.0541 Sell 0.0541
ZARGH¢ Buy 0.3467 Sell 0.3470
EU€GH¢ Buy 6.7201 Sell 6.7266
CHN¥GH¢ Buy 0.8531 Sell 0.8540
GH¢CFA Buy 97.5169 Sell 97.6112
GH¢NG₦ Buy 66.6889 Sell 66.9080
CRYPTOCURRENCY MARKET
Bitcoin $11,748.52
BUSINESS NEWS | GHANA AND BEYOND
Fitch Ratings has affirmed Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B’ with a stable outlook. Fitch said in its latest report that: “Capitalisation and liquidity have improved, but economic headwinds will delay substantial improvement in asset quality. “Non-performing loans/total loans fell to 14% in 2019, from 22% two years prior, but the ratio will remain high as private-sector credit growth slows in 2020. We expect real private-sector credit growth to remain positive in 2020, but in the low single digits.” Fitch Ratings has affirmed Ghana’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook.
The prolonged inter utility legacy debt of US$203 million component of the power sector debt within the energy sector accrued by the end of 2016 has been finally set off. The debt, which involved both state owned corporations and Independent Power Producer, Sunon Asogli Power Ghana Limited affected the operational and financial performance of all parties involved within the power supply chain. A statement signed by Mr Elikplim Kwabla Apetorgbor, Sunon Asogli Manager of Energy Trading, Research and Regulatory Affairs said the settlement of the debt would contribute to the improvement of the credit rating of the various organization within the energy sector seeking for credit facilities from both domestic and international Banks. “It will further reduce the indebtedness of government, ECG, VRA, GNGC and Sunon Asogli Power Limited making their books much better than before,” the statement added.
Mining giant AngloGold Ashanti (AGA) Ghana has launched its Agro business programme dubbed ‘Obuasi Goes Agro (OGA)’ in Adaase, a farming community in Obuasi. The OGA program is in sync with Government’s Planting for Food and Jobs (PFJ) programme which aim to promote food security and immediate availability of selected food crops on the market. The Obuasi Goes Agro (OGA) programmme is one of the flagship socio-economic development interventions of AngloGold Ashanti which is part of their three (3) year Social Management Plan aimed towards the socio-economic development of Obuasi communities to contribute to the diversifying local economy through the design and implementation of innovative interventions in collaboration with stakeholders.
OPEC and its allies fear a prolonged second wave of the COVID-19 pandemic and a jump in Libyan output could push the oil market into surplus next year, according to a confidential document seen by Reuters, a gloomier outlook than just a month ago. A panel of officials from OPEC+ producers, called the Joint Technical Committee, considered this worst-case scenario during a virtual monthly meeting on Thursday. In September, the panel had not seen a surplus under any scenarios it considered.
Such a surplus could threaten plans by OPEC, Russia and allies, known as OPEC+, to taper record output cuts made this year by adding 2 million bpd of oil to the market in 2021. The Organization of the Petroleum Exporting Countries has not indicated any plan so far to scrap that supply boost.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. Watch the MoP webinar on the *Invest in Gh YouTube channel*.
To Register for MoP, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments), select *Option 1* (My Own Pension), select *Option 1* (Enrol) and follow the prompts to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7027 Sell 5.7085
GB£GH¢ Buy 7.3697 Sell 7.3782
AUD$GH¢ Buy 4.0386 Sell 4.0440
CAD$GH¢ Buy 4.3211 Sell 4.3256
JP¥GH¢ Buy 0.0541 Sell 0.0541
ZARGH¢ Buy 0.3446 Sell 0.3450
EU€GH¢ Buy 6.6821 Sell 6.6886
CHN¥GH¢ Buy 0.8512 Sell 0.8520
GH¢CFA Buy 98.0709 Sell 98.1663
GH¢NG₦ Buy 66.5136 Sell 66.7765
CRYPTOCURRENCY MARKET
Bitcoin $11,508.79
BUSINESS NEWS | GHANA AND BEYOND
The latest Summary of Macroeconomic and Financial Data from the Bank of Ghana (BoG) has revealed Ghana’s debt stock accumulation has risen to GH¢43.5 billion in seven months. This comes after the total debt at the beginning of 2020 was pegged at GH¢219.6 billion. According to figures from the BoG, the current accumulation brings Ghana’s total debt to GH¢263.1 billion as at the end of July 2020. The central bank said the total amount of new debt accumulated in the first seven months of the years 2016, 2017, 2018 and 2019 stood at GH¢8.7 billion, GH¢11 billion, GH¢21.8 billion, and GH¢28.9 billion respectively. Additionally, the BoG said the debt accumulation for the first seven months of 2020 represents an increase of 19.8 percent in the country’s debt stock from January to July.
President, Nana Addo Dankwa Akufo-Addo , has commissioned an Integrated Composting and Recycling Plant at Adagya in the Bosomtwe District of the Ashanti Region. The US$95-million plant, when fully operational, is projected to create employment for 2,300 people, 800 directly and 1,500 indirectly. Speaking at the commissioning of the plant during a tour of the Ashanti Region, President Akufo-Addo said the plant boasts of a production capacity to convert 2,400 tonnes of waste material into by-products daily.
The Ghana Cocoa Board (COCOBOD) has signed a syndicated loan agreement of US$1.3 billion for the purchase of cocoa beans in the 2020/2021 crop season. The Chief Executive Officer (CEO) of COCOBOD, Mr Joseph Aidoo, explained that Ghana would receive the money when the agreement is signed, adding that cocoa farmers are assured of receiving physical cash at all COCOBOD contracted agents’ sales points throughout the country when the season is opened in October 2020. The loan agreement was signed on Tuesday, 29 September 2020.
Ghana has been selected among only four initial countries across the world to receive financial support from the COVID-19 Private Sector Global Facility, established by the United Nations Development Programme (UNDP), the United Nations Global Compact (UN Global Compact) and the International Chamber of Commerce (ICC). The other three selected countries are Colombia, the Philippines and Turkey. This was announced by UNDP Administrator, Achim Steiner at the SDG Business Forum during the UN General Assembly last week, the largest and most inclusive UN convening of private sector leaders, under the motto “Recover Better Together”.
The government has pumped GH¢18 million into Darko Farms Company Limited, an integrated poultry production company, in Atwima in the Ashanti Region, to revamp its operations. The financial support, which was channelled through the Ghana EXIM Bank, followed the inclusion of the company in the One District-One Factory (1D1F) programme. The company, which faced operational challenges due to financial constraints prior to the capital injection was due for additional GH¢4 million, to enable it expand and produce at maximum capacity.
G-Money, GCB Bank Ghana Limited’s mobile money service has launched ‘Nexus,’ an open Application Programming Interface (API) system to onboard third-party Financial Technology (FinTech) partners. With the API, G-Money partners are now able to perform disbursements, collections and bill payments including the payment of school fees and utility bills. Additionally, partners will be able to issue USSD Vouchers, Static and Dynamic (Quick Record (QR) payments for customers’ onboarding. Speaking at the launch, Head of Mobile Financial Services of GCB Bank Ltd, Mr. Carl Ashie, said the new services and features would provide more convenience to G-Money customers.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.7000 Sell 5.7058
GB£GH¢ Buy 7.3263 Sell 7.3342
AUD$GH¢ Buy 4.0566 Sell 4.0617
CAD$GH¢ Buy 4.2540 Sell 4.2576
JP¥GH¢ Buy 0.0540 Sell 0.0540
ZARGH¢ Buy 0.3361 Sell 0.3365
EU€GH¢ Buy 6.6894 Sell 6.6954
CHN¥GH¢ Buy 0.8358 Sell 0.8365
GH¢CFA Buy 97.9713 Sell 98.0592
GH¢NG₦ Buy 67.0711 Sell 67.3342
CRYPTOCURRENCY MARKET
Bitcoin $10,705.23
BUSINESS NEWS | GHANA AND BEYOND
Ghana is ranked 130th in the 2020 World Bank Human Capital Index. The country made little gains in the index which has been extended to cover 174 countries. According to the report, the government used data to effectively re-target school feeding efforts under the Ghana School Feeding Program (GSFP) after it found that the targeted population was not being reached. However, more need to be done to improve its rankings. The nation fared better than South Africa and Nigeria. Data from the national poverty statistics and food security and vulnerability analysis were combined to improve targeting and reduce leakages.
The country’s progress in decreasing impediments has also been largely due to the multi-sectoral approach taken by policy makers.
Ghana’s 2020 cocoa light crop season would end at the close of business today, Thursday, September 17, the Ghana Cocoa Board (COCOBOD) announced in a statement released in Accra. The statement, signed by COCOBOD Chief Executive, Joseph Boahen Aidoo, said in order to assist the Licensed Buying Companies (LBCs) to obtain the final returns from upcountry stations, the Ghana Cocoa Board has decided that returns on the declared purchases will be accepted up to 4:00 p.m. on Thursday, September 24, 2020.Cocoa farmers will earn more for their produce in the next cocoa season than they currently receive for the same output of beans in the ongoing season. It follows plans by the government, through the Ghana Cocoa Board (COCOBOD), to raise the cocoa producer price (CPI) paid to cocoa farmers by more than 21% for the 2020/21 season.
➖➖➖➖➖➖➖➖➖
Invest in Gh brings another intriguing webinar to you on September 26, 2020 @ 14:00GMT. Dr. Kenneth Donkor-Hyiaman (Real Estate Finance and Economics Lecturer, KNUST) will speak on the topic *“Cost of Building a House in Ghana”*. Visit *www.investingh.info* to register for free.
➖➖➖➖➖➖➖➖➖
Ghana will in the short to medium term have auto photo maps whereby the entire country will be mapped to serve as a basis for the digitization of the lands in the country. Already all maps in Greater Accra have been scanned and are undergoing digitization. This, according to the Lands Commission, forms part of efforts to address the long-standing issues associated with acquiring and owning land in Ghana. A robust land administration system provides opportunities to unlock the productive capacity of land.
Ghana Government has established a tripartite technical committee to come out with modalities to implement the National Unemployment Insurance Scheme announced in the mid-year budget statement. Mr Ignatius Baffour-Awuah, the Minister of Employment and Labour Relations, said the scheme, when operational, would focus on providing direct income support to workers who lost their jobs or suffered pay cuts in the event of a social or economic crisis. He said the scheme would offer opportunities for training, re-training, job search support, apprenticeship and internships to enable those who lost their jobs to re-adjust. The Minister, at a media briefing in Accra on Wednesday, said the total unemployment rate had reduced from 11.9 percent, per the Ghana Living Standard Survey Six (GLSS Six) to 8.4 percent (GLSS Seven).
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6967 Sell 5.7023
GB£GH¢ Buy 7.3777 Sell 7.3857
AUD$GH¢ Buy 4.1514 Sell 4.1567
CAD$GH¢ Buy 4.3147 Sell 4.3186
JP¥GH¢ Buy 0.0544 Sell 0.0544
ZARGH¢ Buy 0.3508 Sell 0.3512
EU€GH¢ Buy 6.7370 Sell 6.7437
CHN¥GH¢ Buy 0.8420 Sell 0.8428
GH¢CFA Buy 97.2696 Sell 97.3663
GH¢NG₦ Buy 67.3743 Sell 67.5498
CRYPTOCURRENCY MARKET
Bitcoin $10,965.04
Ghana’s international airport reopens
On Tuesday, September 1, 2020, Ghana opened its air borders to international travel. Thus, the Kotoka International Airport (KIA), which was closed to international passenger arrivals since March 21, 2020, when the country recorded its first two COVID-19 cases, has resumed operations.
In a televised address to the nation, President Akufo-Addo indicated that the reopening of the KIA was the result of the institution of a raft of measures prioritizing the health and safety of passengers, airport and airline staff.
COVID-19 test
Passengers arriving in Ghana must possess a negative COVID-19 PCR test result done 72 hours before departure from the country of origin from an accredited laboratory.
Upon disembarking, passengers will undergo a mandatory COVID-19 test at the airport terminal and the result would be available within 30 minutes. Passengers are required to pay for the test.
Passengers who returned positive test results would be referred to health authorities for further clinical assessment and management. Those who test negative would be allowed into the country. However children below the ages of five would not be required to undergo testing at the airport.
Compliance
President Akufo-Addo said all airlines had been instructed to ensure compliance with the directive for all passengers wishing to travel to Ghana. Airlines who failed to observe those set of rules would be duly sanctioned, he warned. The country’s land and sea, borders, however, remain closed to human traffic until further notice.
Disinfection exercise
Ahead of the resumption of operations, Ghana’s Ministry of Aviation, in partnership with Zoomlion Ghana Limited (ZGL) disinfected and fumigated the KIA and its open spaces. The disinfection and fumigation exercises were meant to ensure that the facility was safe for users.
General Manager, Vector Control at ZGL, Rev. Ebenezer Kwame Addae, told journalists that the disinfection, which was the second at KIA, had dislodged all traces of the virus in the airport environment. He said the first disinfection was targeted at curbing the spread of the virus, while the second was aimed at destroying every virus that could possibly be hiding within the airport environment. Rev. Addae said besides those two exercises, regular disinfections would be carried out in three phases at the KIA.
Safety
The Minister of Aviation, Mr Joseph Kofi Adda, said the government had put in place adequate safety measures at the KIA to protect passengers and staff members from the virus. A deputy Minister of Health, Dr Bernard Okoe Boye reaffirmed that the country had put adequate measures in place to detect possible COVID-19 cases at the airport. He stressed that the measures would help prevent any infected person from slipping through the radar.
BUSINESS NEWS | GHANA AND BEYOND
The Governor of the Bank of Ghana, Dr. Ernest Addison, has stated that all customers of the nine failed banks, and over 95 percent of customers of Specialised Deposit-taking Institutions (SDIs), which were affected by the banking sector clean-up have received their deposits. According to Dr. Ernest Addison, the first phase of the banking sector clean-up involved the revocation of licenses of nine banks, for which all depositors were paid in full. “The second phase has to do with the SDIs – these are the savings and loans, microfinance institutions and finance houses. In their case, for individual depositors who have been fully paid, the data that we have suggests that more than 95% of depositors have been fully paid,” he said.
Ghana’s downstream petroleum player, GOIL, is awaiting results of data collected by its partner ExxonMobil for the exploration of crude oil in the Deepwater Offshore Cape Three Points. To this end, the company has also invested in the recruitment of local engineers and geologists to help in the production process. Managing Director, Kwame Osei Prempeh, disclosing this to Joy Business after the virtual annual general meeting of Goil in Accra said, “Even though it is too early to predict, Exxon is very experienced in the field and like I said, they have collected the seismic data to study it in their America office and so far the information they are giving to us is good”.
The Chief Executive Officer of the Ghana Investment Promotion Centre (GIPC), Mr. Yofi Grant has told Ghanaians in the diaspora that the centre is ready to assist them to have access to investment opportunities in Ghana. He explained that the GIPC serves as the intermediary between the private sector and the government, hence, their doors are always opened to them. He said this while speaking at a webinar organized for over 100 Ghanaians in the diaspora via Zoom on the topic “Ghana, An Ideal Destination for the Diaspora Investment” and organized by Bank of Africa Ghana (BOA) in collaboration with the Ghana Diaspora Monetary Fund on Friday, August 21, 2020.
Co-Chairman of the Abossey Okai Spare Parts Dealers Association, Clement Boateng, has kicked against claims that the implementation of the Customs (Amendment) Act, 2020, Act 1014 will affect the business operations of spare parts dealers in the country. His remark follows claims from various stakeholders within the industry that certain aspects of the Customs (Amendment) Act, 2020 that bans the importation of used cars older than 10 years, and salvaged vehicles also known as accident cars may result in loss of jobs. Speaking to Citi Business News , he appealed to government to conduct more education and sensitization programs on the law as it will be a job-creating avenue for many people.
The outbreak of COVID-19 in Ghana has affected the local cashew Industry in the Jaman North Municipality of the Bono Region forcing some out of production. According to cashew farmers, their customers who are mostly outside the region have ceased buying their produce because of the outbreak of the pandemic. One of such is the Kabile Cashew Cooperative located at Kabile which processes cashew and sells to clients in Accra, Kumasi and Takoradi.
Joseph Saa Mensah, owner of Kabile Cashew Cooperative tells Citi Business News , the impact of COVID-19 on the business has decreased production. Clement Anane, the Secretary of the National Cashew Farmers Association of Ghana also states that apart from low sales, the price of cashew has also fallen at an all-time low.
➖➖➖➖➖➖➖➖➖
Save the date 29th August, 2020 because InvestinGh brings you it’s 3rd webinar @ 17:00GMT with Mr. Nana Sarfo (CE0, Bora Capital Advisors) and Mr. William Mensah (Principal Consultant, Lifespring Consult Ltd) to teach you *“How to Achieve Financial Independence”*. Don’t miss this extensive and educative discussion. Visit *www.investingh.info* to register for free.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6806 Sell 5.6862
GB£GH¢ Buy 7.4614 Sell 7.4700
AUD$GH¢ Buy 4.0762 Sell 4.0816
CAD$GH¢ Buy 4.3052 Sell 4.3095
JP¥GH¢ Buy 0.0534 Sell 3.7076
ZARGH¢ Buy 0.3373 Sell 0.3375
EU€GH¢ Buy 6.7165 Sell 6.7231
CHN¥GH¢ Buy 0.8218 Sell 0.8223
GH¢CFA Buy 97.5676 Sell 97.6635
GH¢NG₦ Buy 68.0684 Sell 68.0930
CRYPTOCURRENCY MARKET
Bitcoin $11,370.29
BUSINESS NEWS | GHANA AND BEYOND
Official first-quarter trade figures released by the Ghana Shippers Authority have revealed the severity of the impact of Covid-19 on the country’s maritime sector, with significant declines in all aspects of the business. The total volume of cargo—comprising both containerised and general cargo—handled by the country’s two seaports in the first quarter of 2020 decreased by a whopping 44.9 percent year-on-year, the data showed. The volume recorded was 3.8m metric tonnes compared with the 6.9m metric tonnes recorded for the same period of 2019. The import trade volume for the first quarter stood at 2.7m metric tonnes, representing a 24.5 percent fall year-on-year, while the export trade volume registered 996,331 metric tonnes, representing a 66.1 percent fall year-on-year. The total volume of transit cargo—that is, cargo moved to Ghana’s landlocked neighbours—and transshipped cargo—that is, cargo moved to neighbouring ports by sea—was 79,629 metric tonnes, indicating a 76.1 percent drop year-on-year.
The 3% levy charged all consumers of electricity for street lighting has generated GH¢273.9million of revenue to government in 2018 and 2019, Energy Minister John Peter Amewu said when he appeared before Parliament to answer questions from members last Thursday. Out of that amount, the minister noted GH¢134,266,116 was collected in 2018, and GH¢139,610,716 collected the following year. Meanwhile, in his account he also indicated that out of the total amount only GH¢64.5million has been utilised by the Ministry of Energy for payment of energy consumed by traffic, streets, and public lights, as well as the investment and maintenance of same as required by the Energy Sector Levies (Amendment) Act, 2017, (Act 946).
An international rating agency, Global Credit Rating Agency (GCR) has upgraded Fidelity Bank Ghana’s national scale long term ratings from A- to A and short-term ratings from A2 to A1, with a stable outlook. In a press release announcing the upgrade of Fidelity Bank, the rating agency indicated that Fidelity’s business profile is positive, supported by its above average distribution network, good spread of local geographic diversification, adequate capitalization and stable funding structure. “Fidelity Bank Ghana’s risk position is sound, balancing the probability of asset quality deterioration due to the COVID-19 related economic shock and modest oil prices, and the better than market gross non-performing loans (NPLs). The bank recorded a regulatory NPL ratio of 2.1% at 31 March 2020, better than its competitors and against the industry average of 14.5%,” stated GCR.
Businesses seeking to access support from the NBSSI MasterCard Foundation Recovery and Resilience Program for Micro, Small and Medium Enterprises, will be able to secure the funds after its launch on Wednesday, 12th August, 2020. MasterCard Foundation, in partnership with the National Board for Small Scale Industries, an agency under Ghana’s Ministry of Trade and Industry, announced the creation of an Emergency Program to support MSMEs and start-ups in Ghana, affected by the COVID-19 pandemic with an initial amount of GH¢90 million. A statement issued on the NBSSI MasterCard Foundation Recovery and Resilience Program, said it would focus on supporting MSMEs that need support to survive the COVID-19 pandemic; and businesses in growth sectors where the employment of young people, especially young women, will be negatively impacted as a result of business operation disruptions, supply chain challenges, liquidity shortages, declining sales and profits, and business closures.
Commissioner of Insurance at the National Insurance Commission (NIC) has said the introduction of the Motor Insurance Database (MID) policy has recorded 554,000 electronic stickers since its introduction. This follows an earlier 507,000 motor insurance stickers issued electronically in July this year following the implementation of the MID in January 2020 to curb fake insurance stickers plying the roads. The Commissioner, Justice Yaw Ofori speaking in an interview with GhanaWeb indicated the growing confidence in the system, as most Motorists now buy valid insurances with approved entities.
Ghana needs GH¢3.5 trillion to provide adequate nutrition to 850,000 pregnant women and more than 4,000 infants in the country. The nutritional value should include multiple micronutrient and calcium supplementation, exclusive breastfeeding of infants and improving complementary feeding interventions. It is expected that adequate nutrition would reduce maternal deaths by 82 percent and 16 percent stunted growth in children under-five years and ultimately minimise infant mortality. Currently, one out of every five children in Ghana is malnourished due to endemic poverty, especially in the northern parts of the country.
➖➖➖➖➖➖➖➖➖
The 2nd InvestinGh webinar comes off on 15th August, 2020 @ 17:00GMT. Mr. Akwasi Adu-Boahene, Head of Fidelity Securities Ltd., will speak on the topic *“How to choose a Mutual Fund”*. Visit *www.investingh.info* to register for free.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6768 Sell 5.6824
GB£GH¢ Buy 7.4263 Sell 7.4343
AUD$GH¢ Buy 4.0667 Sell 4.0725
CAD$GH¢ Buy 4.2529 Sell 4.2562
JP¥GH¢ Buy 0.0537 Sell 0.0537
ZARGH¢ Buy 0.3206 Sell 0.3209
EU€GH¢ Buy 6.6814 Sell 6.6856
CHN¥GH¢ Buy 0.8170 Sell 0.8176
GH¢CFA Buy 98.1149 Sell 98.1766
GH¢NG₦ Buy 67.0470 Sell 67.2230
CRYPTOCURRENCY MARKET
Bitcoin $11,895.68
BUSINESS NEWS | GHANA AND BEYOND
Ghana’s Parliament has approved a US$200-million facility to finance the Ghana Jobs and Skills project (GJSP). In a bid to facilitate the country’s socio-economic development through improved support for skills development and job creation, a financing agreement between the government of Ghana and the International Development Association (IDA) to the tune of $200 million, was approved by Parliament on Thursday, 30 July 2020, under the Ghana Jobs and Skills project (GJSP). The project is structured around five (5) components; Provision of Apprenticeship training for jobs (US$60 million), Provision of Entrepreneurship and Micro and Small Enterprise support for jobs (US$ 100 million). Under component three of the project, an amount of $30 million has been set aside for the operationalization of the Ghana labour market information system, upgrading of District public employment centres and the Independent performance review of select government youth employment and skills development programs. The final tranche of US$10 million will also go into capacity development, technical assistance and project management support for enhanced skills and jobs impact.
Parliament has passed a Customs Bill to ban the importation of old vehicles into the country. The new bill, if assented by the President, will stop the importation of what’s popularly known as ‘accident cars’ in Ghana. The amendment is part of a bigger plan towards the implementation of the Ghana Automotive Manufacturing Programme, which has so far attracted several global car assembly plants into the country. The law seeks to provide incentives for automotive manufacturers and assemblers, registered under the Ghana Manufacturing Development Programme. A clause in the amendment empowers the Minister of Finance to specify the date on which the ban will come into force. The document will finally become law after the president assents to it.
The CM Fund Limited, a medium to long-term collective investment scheme established in 2007 under the Securities and Industry Law, recorded a net profit of GH¢ 945,940 in 2019 as against GH¢ 648,582 in 2018. Shareholders’ funds also rose from GH¢7,347,679 in 2018 to GH¢ 8,188,228 in 2019. Board Chairman of the fund, Emile Yartey, disclosed this at the fund’s Annual General Meeting in Accra on Thursday. He noted that the year under review recorded the World’s weakest growth rate since the global financial crisis a decade ago. Mr Yartey said firms became cautious of long term spending and cut back on the purchasing of plant and equipment. He said household demand for durable goods also decreased in most of the year only picking up marginally in the Second Quarter. The Board Chairman said the emergence of COVID-19 has also changed the face of the global economy, adding that restricted movement protocols and lockdowns further slowed down Ghana’s economy.
TC’s Energy USA and its partners, Power China Huadong Engineering Corporation Ltd and Seabased of Sweden, have signed a major agreement to finance and revive the Ada Foah Energy Project, which stalled for years. TC’s Energy Ghana, a wholly Ghanaian owned company is the local counterpart to the project. The project seeks to establish a wave energy park in the Gulf of Guinea in Ghana, about 17 km off the coast of Ada to generate 1,000 megawatts (MW/H) of power from sea waves, employing an environmentally friendly technology – the ‘SEABASED’ Wave Energy Converters (WEC). TC’s Energy has applied to the Ghana Standards Authority for Marine Energy Converters Certification to ensure that the project meets the highest international requirements. Under the terms of the agreement, Power China, a state-owned key enterprise, will provide 85 per cent of the cost, while the remaining 15 per cent is to be borne by the Ghanaian company. The initial plan is to begin with five megawatts and scale up to the project target of 100 megawatts within 24 months.
Rejuvenate Gaia Global has donated 450 bags of Greenfert organic granular fertilizer to support the second edition of the annual Women in Food and Agric Leadership Training Forum & Expo (WOFAGRIC) being organized by Agrihouse Foundation in Kumasi. The event, which starts from Thursday August 6 to Friday August 7, 2020, will also serve as platform to reward some 45 nominee women farmers at the Gold In The Soil Awards which climaxes the event. Expressing appreciation for the donation and Rejuvenate’s support for this year’s event, Executive Director of Agrihouse Foundation, Ms. Alberta Nana Akyaa Akosa, said the 450 bags of organic fertilisers would be used as prizes for all 45 women nominees of the awards.
A Reuters poll of London cocoa futures forecast cocoa would cost 10% less at the end of the year, because of rising production and a hit to demand from the coronavirus crisis. But chocolate bars will not necessarily get cheaper partly because the price of cocoa is only one ingredient in the mix that makes up the retail price. The impact of coronavirus lockdowns curbed impulse buying of chocolate, as people focused instead on stocking up on essentials. And a bleak economic outlook is expected to hit demand for luxuries like chocolate in coming months, while sales at celebrations such as Halloween are likely to be weaker than normal. Apart from cocoa, there are lots of other costs which contribute to the price of chocolate bars. These include other ingredients such as sugar and sometimes milk or nuts as well as packaging, marketing, transportation, taxes and retailer margins. The cost of cocoa, is therefore, just one element in determining the price.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6759 Sell 5.6815
GB£GH¢ Buy 7.4479 Sell 7.4565
AUD$GH¢ Buy 4.0874 Sell 4.0928
CAD$GH¢ Buy 4.2735 Sell 4.2772
JP¥GH¢ Buy 0.0538 Sell 0.0538
ZARGH¢ Buy 0.3270 Sell 0.3274
EU€GH¢ Buy 6.7401 Sell 6.7449
CHN¥GH¢ Buy 0.8164 Sell 0.8172
GH¢CFA Buy 97.2523 Sell 97.3216
GH¢NG₦ Buy 67.0576 Sell 67.2337
CRYPTOCURRENCY MARKET
Bitcoin $11,663.68
President Akufo Addo: Ghana on path to eliminate COVID-19
Ghana is steadily on the path towards containing and eliminating the coronavirus disease (COVID-19), President Nana Addo Akufo-Addo has said.
He said, “at a first glance, it could be alarming to see 32,969 people contract the virus in five months, but a closer look at the data indicates that the country is steadily on the path towards limiting and containing the virus and, ultimately, defeating it.”
In his 14th address on the national response to the pandemic on Sunday, July 26, 2020, the President said the recovery rate had improved from 75 per cent of positives a month ago to 89.5 per cent, all in one month.
“A month ago, the number of recoveries stood at 12, 994, but today it is 29, 494,” he said.
He further noted that the hospitalization and death rates had consistently been very low — one of the lowest in Africa and the world.
“The Ghanaian people, mercifully, are not dying of the virus in the hundreds and thousands that were earlier anticipated and predicted, and that are being seen on a daily basis in some other countries,” he stated
Phase two of easing of restrictions
Noting that life could not be put on hold indefinitely once it was clear that until treatment was found, the COVID-19 would remain a part of life, President Akufo-Addo announced further easing of COVID-19 restrictions covering congregational worshipping, entertainment sites, transport operations and soccer activities.
Congregational worshipping
On congregational worshipping, he said based on the high level of compliance with the safety protocols demonstrated by religious bodies, from 1st August, 2020, the restrictions on the number of congregants worshipping at a time in church will be lifted, with the length of worship extended from one to two hours per service.”
“Church leaders, who are desirous of implementing this enhanced easing directive, must ensure that congregants wear nose masks at all times, and the one metre social distancing rule is scrupulously applied. These same guidelines apply to worship in our mosques,” he added.
Entertainment
The President also announced the reopening of the nation’s tourist sites and attractions to enable them begin to receive visitors.
He said open air drinking spots can now function and tasked the management of these facilities to enforce enhanced hygiene and social distancing protocols.
However, beaches, pubs, cinemas and nightclubs remained closed until further notice.
Transportation
“The government has taken the decision to lift restrictions in the transport sector and allow for full capacity in our domestic airplanes, taxis, trotros and buses,” President Akufo-Addo told the nation.
Nonetheless, he indicated, the wearing of masks in vehicles and aircraft and maintenance of enhanced hygiene protocols remained mandatory.
While stating that the air, land and sea borders will remain closed for human traffic until further notice, Ghanaians who were stranded abroad will be provided special dispensation for the evacuation of such people to enable the come back home. These individuals will be subjected to the mandatory quarantine and safety protocols.
Education
Touching on the gradual reopening of the schools to enable final year students at various levels of education finish the school year and take their exams, President Akufo-Addo observed that “over 750,000 persons, comprising students, teachers and non-teaching staff, in our Junior High Schools are back to school to prepare for and write the Basic Education Certificate Examination.
Three hundred and seventy thousand final year SHS students, who have been in school for five (5) weeks, have started writing the West African Senior Secondary School Certificate Examination, while 127,143 students in Universities and other tertiary institutions have now all virtually completed their final examinations.
“Mercifully, we have witnessed only a few cases of infections in our Universities and other tertiary institutions; the few students who tested positive in a few of our Senior High Schools have all either recovered or are on the path to full recovery, and will write the WASSCE. As well, few final year Junior High School students, who have tested positive and who are largely asymptomatic, are being managed in isolation centers”, he stated.
The president indicated that government continues to engage with stakeholders in the education sector to determine conditions and plans for the future re-opening of schools, after the current examinations are concluded by mid-September.
Individual obligation
He emphasized that the phased opening up of the country puts an individual obligation and responsibility on each one to continue to remain vigilant, and respect the enhanced hygiene, mask wearing and social distancing protocols that have become part and parcel of the daily routine.
“These changes I have announced transition us into a new phase of our COVID-19 fight, in which we teach ourselves how to live responsibly with Coronavirus. We do not expect to go back to the way things were five months ago – but we should create a “new normal”, where we are constantly figuring out how to go to work, keep our businesses and places of worship open, send our children to school, and, all the time, keeping safe, containing the spread of the disease, and acting swiftly where and whenever hotspots appear,” the President concluded.
BUSINESS NEWS | GHANA AND BEYOND
The University of Cape Coast (UCC) has signed a Memorandum of Understanding (MoU) with Park Agrotech Ghana Limited, to ensure the cultivation of enhanced sugarcane for full-scale sugar production for the Komenda Sugar Factory in the Central Region. The Vice-Chancellor of UCC, Prof. Joseph Ghartey-Ampiah appended his signature on behalf of the university, while the Managing Director of Agrotech Ghana Limited, Lalit Mishra, signed for the company. Mr Mishra said that the agreement was a start towards a brighter future and indicated that, the company would invest about $21 million into the factory for the four-year period. He noted that, the deal with UCC was very crucial as the company required quality planting material to produce sugarcane to feed the factory.
Golden Star Resources Ltd has said it has entered into an agreement with Future Global Resources for the sale of its 90 percent interest in the Bogoso-Prestea Gold Mine. The agreement stipulates that an initial purchase price of $55 million shall be paid with a further contingent component of up to US$40 million staged payments to ensure FGR focuses investment capacity on the asset itself while providing Golden Star with exposure to its long-term growth potential. A statement from the mining company noted that operations are planned to continue at the Prestea underground operation, which includes the use of alimak mining on 24 Level and long hole open stoping mining activities on the newly developed 17 Level
Finance Minister Ken Ofori-Atta has announced the planned establishment of an Automobile Industry Development Centre to coordinate licensing of vehicle assemblers and manufacturers, and monitor their compliance with industry regulations. With the expected implementation of the African Continental Free Trade Area (AfCFTA) once the COVID-19 pandemic is brought under control, Mr. Ofori-Atta said the establishment of the centre, together with other policy decisions to facilitate the assembly of automobiles in the country, will lead to the export of vehicles from Ghana to the rest of the continent. The AfCFTA had been expected to come into force on July 1, but the impact of the pandemic on participating countries has led to the postponement of the start date. A new date is yet to be communicated. Based on the number of participating countries, the AfCFTA is the largest trade agreement since the formation of the World Trade Organisation. Its implementation will form a US$3.4tn economic bloc with 1.3bn people across the continent.
Import revenue realized at the Tema Port fell by 45.02 percent for June 2020, Ghana Revenue Authority (GRA) data has shown. The monthly report released on July 1, 2020, indicated that for June 2020, the revenue target at the Tema Port was GH¢1 billion but the total revenue raised was only GH¢554 million. This means there was a shortfall of GH¢453million. In a country where import revenue contributes a significant part of total government income, reducing the revenue by half, as captured by the monthly revenue performance reports compiled by the policy and programmes outfit of the Ghana Revenue Authority – Customs Division, shows an ongoing loss of vital import revenue.
Finance Minister Ken Ofori-Atta has revealed that more than 64,000 small businesses have received financial support to help alleviate the economic impact of the COVID-19 pandemic. Presenting the mid-year budget review statement last week, Mr. Ofori-Atta said GH¢57.1m has been given out as microloans as part of the Coronavirus Alleviation Programme (CAP) Business Support Scheme run by the National Board for Small Scale Industries (NBSSI). The Minister stated that the average amount disbursed was GH¢889.80. The amount disbursed so far is less than 10 percent of the GH¢600m scheme designed to support micro, small and medium enterprises (MSMEs) under government’s GH¢1.2b Coronavirus Alleviation Programme.
Bitcoin’s price blew past $11,000 Monday for the first time since 2019, signaling the end of a multi-year downtrend and pointing to further gains over the horizon. The bitcoin price peaked at $11,417.11 Monday evening, up more than $1,500 on the day. At the time of writing, the digital asset was sitting on a gain of 13% at $11,233, according to TradingView. From a technical standpoint, bitcoin’s price far exceeds the 50-period and 200-period moving averages. The relative strength index on the hourly chart points to overbought conditions. At its current price point, bitcoin has a total market cap of nearly $205.2 billion. That accounts for 63.1% of the overall crypto market, which is presently worth almost $327 billion.
The controversial Communications Service Tax (CST) is set to be slashed by 4 percent, Finance Minister
Ken Ofori-Atta has said. This, the Finance Minister indicated, should be done within six months from now. Ofori-Atta made the revelation during his 2020 mid-year budget statement to Members of Parliament on Thursday. If approved by lawmakers, the ‘talk tax’ as it is known would stand at five percent, one percent lower than what it was before the Akufo-Addo administration increased it a year ago. The decision received widespread backlash, criticism that intensified after the telecommunication companies transferred the charge directly to consumers.
Finance Minister Ken Ofori-Atta has announced the planned establishment of an Automobile Industry Development Centre to coordinate licensing of vehicle assemblers and manufacturers, and monitor their compliance with industry regulations. With the expected implementation of the African Continental Free Trade Area (AfCFTA) once the COVID-19 pandemic is brought under control, Mr. Ofori-Atta said the establishment of the centre, together with other policy decisions to facilitate the assembly of automobiles in the country, will lead to the export of vehicles from Ghana to the rest of the continent. The AfCFTA had been expected to come into force on July 1, but the impact of the pandemic on participating countries has led to the postponement of the start date. A new date is yet to be communicated. Based on the number of participating countries, the AfCFTA is the largest trade agreement since the formation of the World Trade Organisation. Its implementation will form a US$3.4tn economic bloc with 1.3bn people across the continent.
➖➖➖➖➖➖➖➖➖
Join the Investingh webinar on *“How to Buy Stocks in Ghana”* with Mr. Seth Ofori, General Manager at SIC Brokerage on 1st August 2020 @ 17:00GMT. Visit *www.investingh.info* to register for free.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6751 Sell 5.6807
GB£GH¢ Buy 7.3106 Sell 7.3202
CAD$GH¢ Buy 4.2412 Sell 4.2438
JP¥GH¢ Buy 0.0539 Sell 0.0540
ZARGH¢ Buy 0.3454 Sell 0.3459
EU€GH¢ Buy 6.6764 Sell 6.6821
CHN¥GH¢ Buy 0.8106 Sell 0.8116
GH¢CFA Buy 98.1663 Sell 98.2501
GH¢NG₦ Buy 67.0142 Sell 67.1023
CRYPTOCURRENCY MARKET
Bitcoin $11,007.82
BUSINESS NEWS | GHANA AND BEYOND
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 $9bn to build its reserves.
The UK’s mobile providers are being banned from buying new Huawei 5G equipment after 31 December, and they must also remove all the Chinese firm’s 5G kit from their networks by 2027. Digital Secretary Oliver Dowden told the House of Commons of the decision. It follows sanctions imposed by Washington, which claims the firm poses a national security threat - something Huawei denies. Mr Dowden said the move would delay the country’s 5G rollout by a year. The technology promises faster internet speeds and the capacity to support more wireless devices, which should be a boon to everything from mobile gaming to higher-quality video streams, and even in time driverless cars that talk to each other. 5G connections are already available in dozens of UK cities and towns, but coverage can be sparse. Mr Dowden added that the cumulative cost of the moves when coupled with earlier restrictions announced against Huawei would be up to £2bn.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6687 Sell 5.6743
GB£GH¢ Buy 7.0972 Sell 7.1065
CAD$GH¢ Buy 4.1611 Sell 4.1654
JP¥GH¢ Buy 0.0528 Sell 0.0529
ZARGH¢ Buy 0.3371 Sell 0.3375
EU€GH¢ Buy 6.4590 Sell 6.4646
CHN¥GH¢ Buy 0.8100 Sell 0.8104
GH¢CFA Buy 101.4691 Sell 101.5571
GH¢NG₦ Buy 67.1780 Sell 67.2662
CRYPTOCURRENCY MARKET
Bitcoin $9,235.23
BUSINESS NEWS | GHANA AND BEYOND
The Chief Executive of the Petroleum Commission, Egbert Faibille Jnr., has disclosed Ghana lost GH¢5.7 billion (US $1.04 billion) in oil and gas revenue following the coronavirus pandemic. Mr Faibille indicated that just like the adverse effect of COVID-19 which is crippling the economy, the upstream oil and gas sector continues to suffer extensively as a result of the mishap. He made this known at the opening session of a three-day virtual conference organised by the Africa Centre for Energy Policy (ACEP). According to him, “the industry had suffered significant shocks which did not only affect the economy but also impact on work obligations and operations adding that the shortfall in revenue was very significant and that companies had to invest heavily to enable staff to work remotely to keep the industry running.”
The Ghana Commodity Exchange has successfully begun integrating Rural and Community Banks (RCBs) into its Warehouse Receipt Financing (WRF) Programme. So far, five out of the over 140 RCBs operating all around the country, have been integrated into WRF system and the process can be expected to eventually incorporate most of them into the programme which began eight months ago. Indeed, GCX under the warehouse receipt financing model has engaged 15 rural and community banks across the country so far, which means 10 more RCBs are already getting set to join the five now fully incorporated – a major step towards developing an efficient and effective agricultural finance channel for the agriculture sector.
The World Bank has said the COVID-19 global recession is expected to be reflected in the sharpest contractions in six decades in many indicators of global activity. Most notably, the World Bank said, while services-related activities were often relatively resilient during previous global recessions, high-frequency indicators suggest that the COVID-19 shock has led to a near sudden stop in a large swath of services, reflecting both regulated and voluntary reductions in human interactions that could threaten infection. In addition, industrial production and retail sales are likely to register record drops this year. The report further said beyond the unprecedented near-term damage, COVID-19 will likely dampen long-term growth, as exemplified by previous severe epidemics. The long-run loss in output growth would be compounded if the current recession triggers financial crises. For these reasons, once the immediate health emergency abates, setting the stage for a robust recovery will require policies that deal with the lingering effects of the pandemic.
The deadline for filing of annual returns has been extended by six more months from 31st July to 31st December 2020 following the increasing cases of the coronavirus pandemic and its impact on the economy. The Registrar-General’s Department in a statement on Monday, July 13 said: “The Registrar-General’s Department (RGD), wishes to inform all its cherished clients that due to the continuous spread of the COVID-19 pandemic and the inability of Companies to hold their Annual General Meetings, it has further extended the deadline for the filing of Annual Returns from 31st July to December 31st, 2020.” “There will also not be any Penalty increase from GH¢400.00 to GH¢450.00 from 3rd August 2020 as initially communicated,” the statement signed by the Head of Public Relations, Constance Adomaa Takyi, noted.
Local fishermen can expect to power their fishing boats with state-of-the-art outboard motors as the Agricultural Development Bank (ADB) pre-financed the purchase of 1,300 outboard motors at a cost of GH¢19.8million for the Coastal Development Authority (CODA) and the Ministry for Fisheries and Aquaculture Development. The 1,300 outboard motors, which were presented to the authority and the ministry in Tema on Friday are expected to be sold to the local fishers at highly subsidized prices since ADB absorbed all the related cost which amounted to about GH¢7million. Japan Motors and Tri-continental Trade Incorporated aided the bank in the importation of the outboard motors. Dr. John Kofi Mensah, Managing Director of the bank, in his speech noted that the importation and subsequent presentation of these outboard motors wouldn’t have been made possible without the keen support from President Nana Addo Dankwa Akufo-Addo.
Confluent Media, a Ghanaian consultancy company, is to partner IoTeedom of the United States of America (USA), to implement smart cities project in Ghana. The first phase of the project, which seeks to promote peace and security ahead of the 2020 general elections, is expected to be launched in Accra and Kumasi later this year. Through digital solutions, relevant stakeholders including government institutions would be engaged for sustainable peacebuilding campaigns to consolidate the achievements made in previous elections. A Memorandum of Understanding (MoU) to that effect was signed between Confluent Media, IoTeedom and the West Africa Centre for Counter-Extremism (WACCE). West Africa Centre for Counter-Extremism will lead the project’s peace and security building campaigns.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6690 Sell 5.6746
GB£GH¢ Buy 7.1531 Sell 7.1625
CAD$GH¢ Buy 4.1814 Sell 4.1857
JP¥GH¢ Buy 0.0529 Sell 0.0529
ZARGH¢ Buy 0.3398 Sell 0.3402
EU€GH¢ Buy 6.4425 Sell 6.4481
CHN¥GH¢ Buy 0.8102 Sell 0.8112
GH¢CFA Buy 101.7287 Sell 101.8172
GH¢NG₦ Buy 67.0863 Sell 67.1744
CRYPTOCURRENCY MARKET
Bitcoin $9,230.46
BUSINESS NEWS | GHANA AND BEYOND
The Japan International Cooperation Agency (JICA), has signed two agreements with the Ghanaian government to construct a flyover at the Tema Interchange as well as offer scholarships to some Ghanaians. The grant amount for the Improvement of the Tema Motorway Roundabout Phase 2 (Detailed Design) project is One Hundred and Nine Million Japanese Yen (JPY 109,000,000.00), equivalent to about US$ 1 Million. Whiles the grant aid for the Project for Human Resource Development Scholarship (JDS) program for the year 2021 was Two Hundred and Sixty-three Million Japanese Yen (JPY 263,000,000.00), equivalent to about US$ 2.4 Million. The Tema Interchange Project will complement the completed phase 1 interchange project to alleviate serious traffic congestion and improve logistics from/to Tema port to boost trade among Ghana and neighbors’ countries.
The eurozone economy will sink deeper into recession than previously thought due to the effects of the pandemic, the European Commission (EC) has said. The bloc will contract a record 8.7% this year before growing 6.1% in 2021. It compares with the EC’s May forecast of a 7.7% slump and 6.3% growth. France, Italy and Spain will struggle the most, the EC said.
Its revised forecast comes amid concerns about the US economy after a surge in infections. This has prompted several states to delay or reverse lifting restrictions.
A representative of the Ghana Real Estate Developers Association (GREDA), has revealed that 50 percent of potential mortgage and housing deals have come to a halt as a result of the Coronavirus pandemic. According to him, the adverse impact of the pandemic, has led to an operational capacity of 30 percent for real estate and house developers. “The coronavirus pandemic had led to estate developers operating at a maximum capacity of 30 percent, with more than 50 percent of potential mortgage deals being cancelled or put on hold while the servicing of existing ones had been distorted,” the representative told GhanaWeb in an interview. However, a housing expert, Foster Osae-Akonnor told GhanaWeb the demand for housing and mortgages in general has since dwindled across the country. According to him, government needs to provide incentives for architects and contractors in order to sustain the sector from a collapse.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6651 Sell 5.6707
GB£GH¢ Buy 7.1284 Sell 7.1378
CAD$GH¢ Buy 4.1723 Sell 4.1766
JP¥GH¢ Buy 0.0527 Sell 0.0527
ZARGH¢ Buy 0.3315 Sell 0.3319
EU€GH¢ Buy 6.4012 Sell 6.4067
CHN¥GH¢ Buy 0.8064 Sell 0.8074
GH¢CFA Buy 102.3861 Sell 102.4741
GH¢NG₦ Buy 63.5156 Sell 63.6920
CRYPTOCURRENCY MARKET
Bitcoin $9,337.13
BUSINESS NEWS | GHANA AND BEYOND
President Nana Akufo-Addo has directed Metropolitan, Municipal, District Assemblies (MMDAs) and other Government agencies to prioritize locally assembled vehicles when making buying decision for new vehicles. Chief of Staff, Akosua Frema Osei-Opare made this known in a statement. According to the statement, the directive takes effect from July 2020. It says the Ministry of Trade would provide information about assembling vehicles in Ghana. German auto manufacturers, Volkswagen, Chinese Sinotruck and Japanese Toyota are three of the companies assembling vehicles in Ghana. The statement urged all MDAs, MMDAs, and other Government establishments to comply with the policy.
The newly introduced Integrated Customs Management System (ICUMS), which began a month ago at the Terminal Three of the Kotoka International Airport (KIA), has yielded a total revenue of GH¢55.4 million. This represents a 20 percent increment over last year’s revenue performance for June, which was about GH¢46 million. Mr Festus Mensah, the Chief Revenue Officer in-charge of General Duties at the KIA, disclosed this to stakeholders at a forum in Accra. The forum, which was organised by the Accra Airport sector of the Custom Division of the Ghana Revenue Authority, at the Terminal Three, revealed that revenue mobilization under the new system was doing quite well.
The Finance Committee of Parliament has tasked the management of the Micro Finance and Small Loans Centre (MASLOC) to improve on its loan recovery as the scheme recovered only 55% of loans disbursed in 2019. This follows a drop in the recovery rate from 64% in 2016 to 55% in 2019. Presenting a report of the Finance Committee on the budget performance of the office of government machinery for 2019 on the floor of the House, Chair of the Committee Dr Mark Assibey-Yeboah disclosed many targets set by the management of MASLOC in the year under review were not met.
The Institute for Energy Security, IES, says the drop in Ghana’s oil revenue in 2019 could be attributed to the movement of crude prices on the world market and the challenges faced by Tullow Oil in the TEN Fields. Oil revenue dropped by 5 percent to US$925 million in 2019 from US$977 million in 2018, even though oil production in the period under review went up by 15 percent. Speaking to Citi Business News, the Executive Director of IES, Nana Amoasi VII, (The seventh), explained that Ghana’s oil revenue forecast in the national budget was also over-projected comparing to global benchmark prices.
African countries have lost almost US$55 billion in travel and tourism revenues in three months due to the coronavirus pandemic, the African Union (AU) commissioner for infrastructure and energy said on Thursday. Amani Abou-Zeid told a news conference the economic impact of lockdowns and border closures to curb the spread of the virus would be severe, with the continent’s air industry hit particularly hard. She said tourism and travel represented almost 10% of the gross domestic product of Africa. “We have 24 million African families whose livelihood is linked to travel and tourism,” Abou-Zeid said, adding the downturn had come in a year when Africa was expected to see an increase in travel and air transport.
Oil fell below US$43 a barrel on Friday as a resurgence of coronavirus cases raised concern that fuel demand growth could stall, although crude was still headed for a weekly gain on lower supply and wider signs of economic recovery. The United States reported more than 55,000 new coronavirus cases on Thursday, a new daily global record for the pandemic. The rise in cases suggested US jobs growth, which jumped in June, could suffer a setback. Brent crude was down 52 cents, or 1.2 percent, at US$42.62 a barrel as of 0805 GMT, and US West Texas Intermediate (WTI) crude fell 50 cents, or 1.2 percent, to US$40.15.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6654 Sell 5.6710
GB£GH¢ Buy 7.0624 Sell 7.0701
CAD$GH¢ Buy 4.1735 Sell 4.1761
JP¥GH¢ Buy 0.0527 Sell 0.0527
ZARGH¢ Buy 0.3323 Sell 0.3326
EU€GH¢ Buy 6.3694 Sell 6.3752
CHN¥GH¢ Buy 0.8029 Sell 0.8030
GH¢CFA Buy 102.8920 Sell 102.9857
GH¢NG₦ Buy 63.5122 Sell 63.6886
CRYPTOCURRENCY MARKET
Bitcoin $9,034.07
BUSINESS NEWS | GHANA AND BEYOND
The National Board and Small Scale Industries (NBSSI) has disbursed some GH¢1m to micro-business owners in the country. This amount is part of the special fund set up by the government to cushion micro, small and medium enterprises (MSMEs) from the impact of the coronavirus disease ( COVID-19 ). On Wednesday, June 24, 2020, the NBSSI begun the disbursement of GH¢1 million to 1,000 applicants under the first tranche of the GH¢1 billion
Coronavirus Alleviation Programme (CAP) business support scheme.
They include food sellers, hairdressers, tailors, among others. The beneficiaries, who met the rigorous criteria designed by the NBSSI, received up to GH¢2,000 via mobile money under what is known as the Adom Micro-Soft Loans, for micro-enterprises. The special fund is categorised into Anidaso and Adom special loans, with an interest rate of three percent, payable within two years after a moratorium of one year.
The Ministry of Finance has revealed that the Ghana Revenue Authority (GRA) successfully registered 1,394,842 taxpayers in the year 2019. This brought the total number of taxpayers registered with Tax Identification Numbers (TINs) to 3,394,488 as of 31st December 2019, resulting from the drive to improve tax administration and expand the tax base. These were contained in the ministry’s budget performance report for 2019 presented to Parliament on April 8, 2020 by the Minister of Finance, Ken Ofori-Atta . Presenting the Finance Committee’s report on the budget performance, Dr. Mark Assibey Yeboah said the Finance Ministry in the year under review “undertook some major technological initiatives to offer enhanced online services to taxpayers.”
The Chief Executive Officer of Tema Metropolitan Assembly (TMA), Mr Felix Mensah Nii Anang-La, has disclosed that the assembly recorded 18 percent growth in revenue generation in the 2019 fiscal year. This, according to him, was due to the deployment of robust revenue mobilization techniques. Addressing the first ordinary meeting of the first session of the 8th assembly here yesterday, Mr Anang-La said the assembly raked in revenue of GH¢35.39 million out of a budget of GH¢44.50 million. He explained that money collected was made up of internally generated funds of GH¢23.29 million and Government of Ghana grants and other transfers amounting to GH¢12.10 million. Mr Anang-La said the assembly incurred an expenditure of GH¢35.70 million on programmes and projects within the same period. He said to boost revenue mobilization, the assembly would introduce mobile money payment system.
About 1000 small and medium scale enterprises (SMEs) in the country are expected to benefit from a nine-million dollar World Bank grant. The funds would go into developing tourism sites and destinations, infrastructure and capacity building. The support is an initial amount from the World Bank to revitalise the tourism and hospitality industry hit hard by the COVID-19 pandemic. The World Tourism Organization (WTO) estimates that about 80 per cent of the small and medium scale enterprises have been adversely affected by the COVID-19 pandemic worldwide. Prospective applicants must be individuals and Ghanaian-owned businesses with physical presence in Ghana and registered with the Registrar General’s Department and associations within the tourism industry. At the launch of the Grant Scheme, under the Ghana Tourism Development Project, in Accra on Wednesday, Mrs Barbara Oteng-Gyasi, the Minister of Tourism, Arts and Culture, said prospective applicants could submit the Expression of Interest from today, June 24 to July 8,2020.
Access to the internet has the power to change lives and bridge inequalities and MTN Group reached a significant milestone by recording 100 million active data users on its networks across Africa and the Middle East. “We believe that everyone deserves the benefits of a modern connected life,” said MTN Group President and CEO Rob Shuter. “We are delighted to have connected 100 million of our customers to the power of the internet as we have increased data coverage and reduced the cost to communicate across our markets.” MTN has a total base of more than 257 million customers in 21 markets. Growth through scaling data and digital services is central to its strategy. The group is overcoming the barriers to greater mobile internet adoption by extending its 3G and 4G coverage, accelerating smartphone adoption and transforming prices.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
The Investingh team put together a Financial Planning Template to help you plan your budget, retirement, child’s fees, weddings, buying a car, land acquisition etc. Follow this link to download: http://eepurl.com/gb8arv
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6549 Sell 5.6605
GB£GH¢ Buy 7.0120 Sell 7.0219
CAD$GH¢ Buy 4.1391 Sell 4.1442
JP¥GH¢ Buy 0.0527 Sell 0.0528
ZARGH¢ Buy 0.3273 Sell 0.3277
EU€GH¢ Buy 6.3411 Sell 6.3472
CHN¥GH¢ Buy 0.7978 Sell 0.7986
GH¢CFA Buy 103.3459 Sell 103.4453
GH¢NG₦ Buy 63.6301 Sell 63.8068
CRYPTOCURRENCY MARKET
Bitcoin $9,265.16
BUSINESS NEWS | GHANA AND BEYOND
The Ministry of Business Development yesterday launched this year’s Presidential Pitch aimed at providing startup capital for young entrepreneurs across the country. The initiative, as part of government’s efforts to curb the high unemployment rate, will see 10 successful applicants pitch their business ideas before a jury in a final competition slated for July 1, 2020 to qualify for financial support. This year, government has earmarked a GH¢1 million grant for successful applicants to realise their business ideas and improve livelihoods.
Despite the emergence of the coronavirus pandemic at the beginning of this year, the Hotel and Restaurants [hospitality] sub-sector recorded strong growth higher than the national growth rate of 4.9% in the first quarter of 2020.
According to figures from the Ghana Statistical Service, the sub-sector grew by 6.4% in quarter one, sweeping away the presence of COVID-19 . It grew by 7.6%, 3.2% and 6.0% in the years 2017, 2018 and 2019, respectively. However, many analysts believe the sub-sector, which was severely hit by the three-week partial lockdown of the country from 30 March, 2020, will be felt when the second quarter 2020 figures are released later. This is because many hotels and hospitality firms have closed down due to low patronage and high cost of running the business.
The Ghana Ports and Harbours Authority (GPHA) has sealed a consulting services contract for the execution of feasibility studies for the construction of the Port of Keta. The GPHA, announcing this in a press statement, said it has commissioned an association of Consultants led by M/s Sellhorn Ingenieurgesellschaft mbH from Hamburg, Germany, naming other consultants as ProTeln Service GmbH, PSP Architekten, Ingenieure and a Ghanaian team from Yogarib Engineering Services Limited. It indicated that the GPHA had also issued the Letter of Notice to Commence to the Consultant to begin the services officially on the 23rd of June 2020, in accordance with the conditions of the contract during the signing ceremony through Microsoft Teams video conferencing.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6483 Sell 5.6539
GB£GH¢ Buy 7.0072 Sell 7.0165
CAD$GH¢ Buy 4.1598 Sell 4.1641
JP¥GH¢ Buy 0.0529 Sell 0.0530
ZARGH¢ Buy 0.3235 Sell 0.3239
EU€GH¢ Buy 6.3345 Sell 6.3400
CHN¥GH¢ Buy 0.7979 Sell 0.7986
GH¢CFA Buy 103.4632 Sell 103.5531
GH¢NG₦ Buy 63.7044 Sell 63.8814
CRYPTOCURRENCY MARKET
Bitcoin $9,420.99
BUSINESS NEWS | GHANA AND BEYOND
For the period between June to August this year, the Government plans to issue securities to the tune of GH¢17.84 billion (gross), of which GH¢15.81 billion is to rollover maturities and the remaining GH¢2.03 billion is fresh issuance to meet Government’s financing requirements, the Bank of Ghana has said. The central bank said It expects that the 2020 June to August Calendar will meet the requirements of market participants. “We assure all stakeholders and the general public that we continue to strive for greater predictability and transparency in the domestic bond market,” the BoG said. As part of Government’s effort to improve market transparency in the issuance of Government securities, the BoG has released calendar for the perusal of the investing public.
Aker Energy Ghana Limited (“Aker Energy”) has entered into a Letter of Intent (LOI) with Yinson Holdings Berhad (“Yinson”) to award a bare-boat charter and an operations and maintenance contract for a floating, production, storage and offloading (FPSO) vessel at the Pecan field, offshore Ghana. “We are continuing with our preparations for the Pecan project and awarding an LOI for the future contracts for the FPSO vessel is certainly a key milestone,” says Mr. Svein Jakob Liknes, CEO of Aker Energy. “As one of the world’s leading FPSO providers, we have a strong belief in Yinson’s ability to deliver on time, at the required quality, and to the highest safety standard.” The LOI follows a competitive tender and demonstrates Aker Energy’s intention to award the forthcoming bare-boat charter and operations and maintenance contract for the FPSO for the planned development of the Pecan field in the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana. The contracts will have a firm duration of ten years followed by five yearly extension options exercisable by Aker Energy as operator on behalf of the license partners Lukoil, Fueltrade and Ghana National Petroleum Corporation (GNPC).
The soft loan package being offered by government in collaboration with selected financial institutions – universal banks, savings and loans companies, rural and community banks and microfinance institutions – is attracting strong interest from potential beneficiaries although it appears that applications may fall short of expected when the deadline expires at the end of this week. An estimated 170,000 businesses have so far applied for the GH¢1 billion stimulus package mobilized for Micro, Small and Medium Enterprises (MSMEs) according to the National Board for Small Scale Industries which is in charge of supervising the initiative. Government is putting up GH¢600 million to fund the initiative and the selected financial intermediation firms collaborating in its execution are expected to put up about GH¢400 million bringing the total funding to GH¢1 billion.
Oil futures finished with a more than 3% gain on Tuesday as a monthly report from the International Energy Agency forecast a record rise in demand for crude and its byproducts next year, but only after first dropping significantly in the current year. The International Energy Agency said that while the
world’s demand for crude will drop by 8.1 million barrels a day in 2020, “the largest in history,” demand in 2021 will bounce back by 5.7 million barrels a day, the “largest one-year jump ever recorded.”Against the backdrop, West Texas Intermediate crude for July delivery, the U.S. benchmark, rose $1.26, or 3.4%, to settle at $38.38 a barrel on the New York Mercantile Exchange, after hitting highs above $39 during the session. Prices rose 2.4% on Monday.
Global benchmark Brent oil for August delivery BRNQ20, -0.53% picked up $1.24, or 3.1%, at $40.96 a barrel on ICE Futures Europe after gaining 2.6% in the previous session. A monthly report from the Organization of the Petroleum Exporting Countries is due Wednesday, after the cartel and its allies, in a group known as OPEC+, agreed earlier this month to extend production cuts of nearly 10 million barrels per day through July and to review the status of adherence to those reductions monthly.
*Read more quality global energy related news on https://oilprice.com*
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6491 Sell 5.6547
GB£GH¢ Buy 7.1156 Sell 7.1250
CAD$GH¢ Buy 4.1631 Sell 4.1674
JP¥GH¢ Buy 0.0526 Sell 0.0526
ZARGH¢ Buy 0.3303 Sell 0.3306
EU€GH¢ Buy 6.3515 Sell 6.3570
CHN¥GH¢ Buy 0.7981 Sell 0.7991
GH¢CFA Buy 103.1866 Sell 103.2759
GH¢NG₦ Buy 63.6954 Sell 63.8723
CRYPTOCURRENCY MARKET
Bitcoin $9,528.82
BUSINESS NEWS | GHANA AND BEYOND
Government, through the Ministry of Business Development, has launched a support programme for startups and small businesses across the country. The project, dubbed: “Presidential Business Support Programme”, aims at training and funding small scale and startup businesses to grow their capacities and create more jobs. This year’s edition, which marks the 3rd phase of the programme, will see a total of 26,000 startup and small business owners receiving training in various fields and sectors of the economy. Of this number, 5,000 businesses will receive financial support after the course. The support package ranges from GH¢5,000 to GH¢10,000 depending on the nature of participant’s business.
Ghana has been appointed as a member of the Independent Advisory Committee (IAC) of the Global Internet Forum to Counter Terrorism (GIFTC).
This nomination is due to Ghana’s political commitment and human right-centric approach to developing its cybersecurity as well as its active engagement at the regional and international levels to promote the responsible use of the internet. The GIFCT was established in July 2017 by a group of companies dedicated to disrupting terrorists’ abuse and misuse of member platforms. The original Forum was led by a rotating chair drawn from the four founding companies — Facebook, Microsoft, Twitter, and YouTube.
The Social Security and National Insurance Trust (SSNIT) has finally resolved its long-standing battle with pensioners over disagreements on Past Credit owed the latter ever since the three-tier Pension Scheme Act 766 was implemented. A press release from SSNIT stated that it has released GH¢59,612,321 which hit the accounts of the 19,918 affected pensioners on Thursday, June 11, 2020, thereby, bringing the matter to successful conclusion as agreed between government and sections of organized labour on the interest rate applied to the accrued Past Credit which is a one-time benefit for pensioners who are retiring under the National Pensions Act, 2008, Act 766. This comes in the wake of 12 public sector worker unions, on Wednesday, threatening to strike after they gave a two-week ultimatum to government to ensure that the Past Credit and other issues regarding their pensions are resolved.
Parliament has approved a request to waive Domestic VAT totaling US$3.1 million on local purchases and services in the rehabilitation and upgrading of equipment in Technical Universities, Polytechnics and Technical and Vocational Training Centres. The request for the VAT exemption complies with the Concessional Loan Agreement between the Government of Ghana and the Export-Import Bank of China. Dr Mark Assibey-Yeboah, Chairman of the Finance Committee presented the Committee’s report on the floor Parliament indicated that Parliament had in July 2018 approved by a resolution the Supplementary Contract Agreement Nos. 1&2 as well as the Commercial Contract between the Government of Ghana, acting through the Ministry of Education and Messrs AVIC International Holding Corporation of China for the implementation of the project.
An industry discussion has commenced between players in the insurance sector and the regulator – the National Insurance Commission (NIC) – for a possible extension of the GH¢50 million new minimum capital requirement set to take effect in June next year. The insurers, under the auspices of the Insurance Brokers Association of Ghana (IBAG) and Ghana Insurance Association (GIA) are requesting an extension of the minimum recapitalization as a result of the Coronavirus Pandemic that has severely impacted on all business activities across the globe. The new minimum capital requirement with a 230 percent increase from the initial GH¢15 million to GH¢50 million for both life and non-life (general) insurers created fierce controversy among industry operators following its announcement.
The Chairman of the Integrated Customs Management System (ICUMS) Technical Implementation Committee, Assistant Commissioner of Customs, Emmanuel Ohene, has assured freight forwarders that the UNIPASS clearing system at the country’s ports will improve within six months. This follows criticisms by the Ghana Institute of Freight Forwarders (GIFF), which says the new system has failed. Speaking at a press conference in Tema, Mr. Emmanuel Ohene, acknowledged that although the new system has some technical challenges, they are working to resolve them. “From our projections, we are anticipating that within the next six months ICUMS end-to-end clearance will take forty-eight hours. It is important to mention that when I was explaining the issue of SLAs, I indicated that we have several levels of activity in the post ICUMS where you have pre-arrival, clearance and post-clearance.” The UNIPASS/ICUMS platform is a new port clearing system that processes documents and payments through one window: a departure from the previous system where valuation and classification and risk management and payment were handled by different entities.
The Energy Ministry is confident of harnessing at least one gigawatt of power from nuclear sources, as it finalizes proposals to be submitted to Cabinet for approval. Officials of the ministry yesterday held a meeting with the Minister of Environment, Science, Technology, and Innovation, as well as other stakeholders, where an agreement was reached to nearly triple the country’s current, installed power capacity. Ghana has over 4,000 megawatts (MW) of installed electricity generation capacity including renewable sources, though actual availability barely exceeds 2,400 MW due to changing hydrological conditions, inadequate fuel supplies, and poor energy infrastructure.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6472 Sell 5.6528
GB£GH¢ Buy 7.0657 Sell 7.0751
CAD$GH¢ Buy 4.1529 Sell 4.1572
JP¥GH¢ Buy 0.0526 Sell 0.0526
ZARGH¢ Buy 0.3303 Sell 0.3307
EU€GH¢ Buy 6.3518 Sell 6.3573
CHN¥GH¢ Buy 0.7963 Sell 0.7972
GH¢CFA Buy 103.1817 Sell 103.2710
GH¢NG₦ Buy 63.7168 Sell 63.8938
CRYPTOCURRENCY MARKET
Bitcoin $9,412.15
BUSINESS NEWS | GHANA AND BEYOND
The national year-on-year inflation rate was 11.3% in May 2020, which is 0.7 percentage points higher than last month, the Ghana Statistical Service (GSS), has announced. Month-on-month inflation between April 2020 and May 2020 was 1.7%, the GSS added. This is lower than the 3.2% recorded between March and April 2020, but higher than the average month-on-month inflation recorded in the months from October 2019 to March 2020 (0.7%). Only two of the thirteen Divisions had higher than average inflation rates; Food and Non-Alcoholic Beverages and Housing, Water, Electricity, and Gas (both 15.1%). At the regional level, the overall year-on-year inflation ranged from 3.1% in the Upper East Region to 13.3% in Greater Accra. When comparing Food to Non-Food inflation, there are clear differences between regions. Ashanti (22.3%) and Western Region (19.8%) had the highest rates of Food inflation, while Eastern Region saw the highest
The Securities and Exchange Commission (SEC) has said it will be able to decide on the payment schedule for customers of defunct Fund management firms by the end of June 2020. According to the Commission, it is in the process of finalising the validation process of affected investors. This would influence how the payment would be carried out.
Director-General of SEC noted that “So what we have done, firstly, is to get the liquidation process to start and that means that the official liquidator that the Registrar General is in court. “We can’t tell when that process will terminate because it’s an issue of the court process so that is in the works,” the Director-General explained to
JoyNews June 9, 2020. He however expressed confidence that: “by the end of this month, the SEC will be in the position to make a definite announcement so by the end of this month, I believe that everybody should be clear as to what to expect and when to expect it.”
Malaysian palm oil futures rose for a third straight session on Wednesday, though trading was cautious ahead of the release of official May supply and demand data, and cargo surveyors’ export numbers for the first 10 days of this month. The benchmark palm oil contract for August delivery on the Bursa Malaysia Derivatives Exchange gained 10 ringgit, or 0.38%, to 2,397 ringgit ($562.02) a tonne by 0236 GMT, tracking strength in rival soyoil. Palm climbed as much as 3.2% in the previous session to its highest since March 31, on estimates of a surge in June 1-10 exports. Palm oil exports during June 1-10 were seen 45%-79% higher than a month earlier, traders said.
Massive transformation has arrived, as African RPA pioneering firm Ntansa, based in Ghana, West Africa, announces they have joined forces with UiPath. Ntansa has partnered with UiPath, the leading enterprise Robotic Process Automation (RPA) software company, to help organizations scale RPA capabilities in their business units by providing a fast, reliable, and efficient delivery model. The experienced Ntansa Project Team intends to continue to assist clients, strategic partners, and technology partners with projects developed using UiPath’s hyperautomation platform. This partnership, which began nearly two years ago, will continue to cover African organizations supporting customers in all industries and countries from their Accra operational center.
Airlines are set to lose US$84 billion as the coronavirus pandemic reduces revenue by half to mark the worst year in the sector’s history, the International Air Transport Association (IATA) forecast on Tuesday. With most of the world’s airliners currently parked, IATA said revenue would likely fall to US$419 billion from US$838 billion last year. “Every day of this year will add US$230 million to industry losses,” IATA Director General Alexandre de Juniac said. The average loss amounts to almost $38 per passenger flown. In 2021, IATA warned losses could hit US$100 billion as traffic struggles to recover and airlines slash fares to win business.
Absa Group, one of Africa’s largest financial services providers, is celebrating substantial completion of its separation programme from Barclays PLC, three years after the start. The separation, one of the largest and most complex corporate programmes of its kind, followed Barclays PLC’s 2016 decision to reduce its shareholding in the African group to a minority position. Barclays became the majority shareholder in Absa in 2005 and the two groups subsequently integrated systems, processes and policies over time. “We are closing an important chapter in the more-than-100-year history of the Absa Group as we wind up the last few ele
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6250 Sell 5.6306
GB£GH¢ Buy 7.1724 Sell 7.1824
CAD$GH¢ Buy 4.2035 Sell 4.2064
JP¥GH¢ Buy 0.0524 Sell 0.0525
ZARGH¢ Buy 0.3391 Sell 0.3395
EU€GH¢ Buy 6.3851 Sell 6.3906
CHN¥GH¢ Buy 0.7977 Sell 0.7981
GH¢CFA Buy 102.6440 Sell 102.7325
GH¢NG₦ Buy 63.9682 Sell 64.1458
CRYPTOCURRENCY MARKET
Bitcoin $9,873.74
BUSINESS NEWS | GHANA AND BEYOND
The Bank of Ghana (BoG) has revealed that the government’s budgetary operations for 2019 recorded a deficit of 4.8 percent of GDP, slightly higher than the revised target of 4.7 percent. The deficit was financed from both domestic and foreign sources, the Central Bank noted in the 2019 Annual Report. Total government receipts amounted to GH¢53.0 billion (15.2% of GDP), marginally below the revised target of GH¢54.6 billion (15.6% of GDP). The major components were tax revenue of GH¢42.4 billion (80.0% of total receipts), non-tax revenue of GH¢7.6 billion (14.3% of total receipts) and grants of GH¢1.0 billion (1.9% of total receipts). Total government payments for the year amounted to GH¢67.7 billion (19.4% of GDP) which was below the revised budget of GH¢70.2 billion (20.1% of GDP).
Exports of cocoa beans and products increased by 5.0 percent to US$2.29 billion in 2019, the Bank of Ghana (BoG) has said in its 2019 Annual Report. The report said cocoa beans exported amounted to US$1.45 billion, an increase of 3.2 percent compared to the value in 2018. The average realised price of cocoa beans increased by 8.8 per cent to US$2,366.94 per tonne, while export volume fell by 5.2 per cent to 613,184 tonnes. Earnings from cocoa products increased by 8.2 per cent to US$0.84 billion, on account of both price and volume effects. The report further indicated that the value of timber exports fell by 23.7 per cent to US$0.17 billion, the Bank of Ghana has announced.
Ghanaian agribusiness company, Park Agrotech, has received Cabinet’s approval as the preferred strategic investor for the Komenda Sugar Factory, Trade Minister Alan Kyerematen has disclosed. The Minister told Parliament, in Accra, that Agrotech was expected to work with STM Projects Limited, an Indian company with extensive experience in the management and operation of Sugar Mills and plantations both in India and other parts of the world. Accordingly, following the approval by Cabinet as required by conventional practice, the Transaction Advisors entered into final negotiations with the successful bidder with the view to entering into concession agreement for the operations of the Komenda Sugar Factory. Mr Kyerematen, who was addressing the current state of the Komenda Sugar Factory, said over the first three years of the agreement, Agrotech would invest US$28 million in capital expenditure and working capital, and would pay an annual concession fee of US$3.3 million for a period of 15 years.
The African Development Bank has loaned Nigeria just over $288m (£227m) to help it deal with the impact of the coronavirus pandemic. The finance minister warned last month that Nigeria’s economy – Africa’s largest – could shrink by up to 9 percent. It’s suffered a big hit from the global slump in oil prices in recent months. There have been proposals to reduce basic healthcare spending by almost half, and make significant cuts to the education budget. In April, Nigeria received an emergency package worth about $3.4bn from the International Monetary Fund (IMF), to help support the economy during the pandemic.
The new Integrated Customs Management System (ICUMS) within a week generated GH¢177.3 million revenue at the Tema Port as a result of successful processing of 4,793 Bills of Entry (BoE) from Custom house agents and freight forwarders. A statement from the Ghana Revenue Authority (GRA) and copied to the Ghana News Agency in Accra on Sunday said the amount was not the total revenue generated at Tema Port for last week. This is because a large chunk of BoE for goods cleared last week had been processed through the systems of the outgone service providers and the revenues declared through that system. The statement said Customs was expected to complete processing of all BoE declared through the previous systems in the next two weeks to reflect the full revenue generated at the Port.
Aker Energy Ghana has reaffirmed its commitment to finding a solution that will allow for the commencement of a phased development of the Pecan field offshore Ghana. “In a time when most other E&P companies are putting development projects on the shelf due to the COVID-19 situation and historic low oil prices, Aker Energy and our partners, Lukoil, Fueltrade and GNPC, working closely with the Ghana government, are actively pursuing a development concept where we can commence phase one of a phased development of the Pecan field,” said Håvard Garseth, CEO of Aker Energy. In March, Aker Energy announced that a final investment decision (FID) for the Pecan field development project had been placed on hold, postponing the project. While no new date has been set for the FID, the company is working actively to confirm the feasibility of a phased Pecan field development by executing conceptual studies.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6202 Sell 5.6258
GB£GH¢ Buy 7.1376 Sell 7.1453
CAD$GH¢ Buy 4.1910 Sell 4.1943
JP¥GH¢ Buy 0.0513 Sell 0.0513
ZARGH¢ Buy 0.3333 Sell 0.3336
EU€GH¢ Buy 6.3587 Sell 6.3622
CHN¥GH¢ Buy 0.7956 Sell 0.7962
GH¢CFA Buy 103.1022 Sell 103.1590
GH¢NG₦ Buy 64.0228 Sell 64.2006
BITCOIN Trading Price $9,699.50 ▲$1130.04 ▲12.36%
ETHEREUM Trading Price $241.73 ▲$12.22 ▲9.85%
RIPPLE Trading Price $0.2022 ▲$0.0015 ▲1.21%
Bloomberg USDGHS Cross Rate - *5.7768*
BUSINESS NEWS | GHANA AND BEYOND
The Bank of Ghana is working on establishing a sandbox to promote innovation in the financial market and also test some concepts including the establishment of a Central Bank Digital Currency. First Deputy Governor, Dr Maxwell Opoku-Afari, who was speaking at a Virtual Stakeholder Workshop on Payment Systems and Service Act in Accra, said there had been phenomenal transformation as a result of growing adoption of digital technology over the past decade. He said individuals, businesses and government had shown strong preference for digital payments for reasons of convenience, efficiency, speed, affordability, round the clock availability and robust audit trail.
The Government of Ghana has found a strategic investor for the Komenda Sugar Factory, Trade and Industry Minister, John Alan Kwadwo Kyerematen, has announced. Mr. Kyerematen in April 2019, reported to parliament that the government was in search of a strategic investor with the requisite technical and financial capacity to operationalize the sugar factory efficiently and profitably. In an answer to a question by the Member of Parliament for Chereponi, Samuel Abdulai Jabanyite, Mr Alan Kyerematen said an investor had been settled on and that the factory was set to take off.
Ghana’s tourism and hospitality industry has lost a whopping US$171m due to the effects of the novel coronavirus pandemic on the industry. According to Minister of Tourism, Culture and Creative Arts, Barbara Oteng-Gyasi, an initial assessment of the loss from March to June 2020 revealed this amount, owing to the lack of operations. She also noted that a further assessment will be done to ascertain the full impact of Covid-19 on the sector. Speaking at a Ministry of Information press conference today, she indicated that the effect may be minimized as the government will provide some support for some key players in the industry.
The financial performance of 77 enterprises owned by the government of Ghana were mixed, according to the 2018 State Ownership Report. While Joint Venture Companies (JVCs) posted impressive financial results achieving an aggregate net profit of GH¢1.35 billion in 2018 from a net loss position of GH¢272.22 million in 2017, the performance of State-Owned Enterprises (SOEs) further deteriorated in 2018 culminating in a combined net loss of GH¢3.12 billion. Both SOEs and JVCs posted marginal increases of 7.35% and 2.48% respectively in revenue. However, the ability of the JVCs to keep their costs down compared with their SOEs counterparts accounted for their contrasting bottom-line results, the report explained. The report expressed worry about the persistent abysmal financial performance of SOEs.
Ghana and Amandi Holdings Limited have signed a US$560 million agreement for the construction of sections of the Western Railway Line (Standard Gauge Line) between Takoradi Harbour and the Huni Valley. The signing ceremony, which took place in Accra on Wednesday, June 5, 2020, in the presence of Mr Joe Ghartey, the Minister of Railway Development; had Mr Richard Diegong Dombo, the Chief Executive Officer of the Ghana Railway Development Authority (GRDA) initialing for Government while Mr Nadav Simhoni, Managing Director, Amandi Holdings Ltd signed for his company. The signing of the agreement would be followed by Cabinet’s approval for it to be taken to Parliament.
The Association of Oil Marketing Companies (OMC) has said that by end of this week its members will increase petroleum prices by a minimum of 14 percent. Kwaku Agyemang Duah, the association’s chairman, told the B&FT that the move is due to some significant events during June’s first pricing window – paramount among them being the increase of BOST’s margin from 3 to 6 pesewas, and also the about-22 – 25 percent increase in the Bulk Distribution Company (BDC) ex-refinery price. He added that petroleum prices are also being controlled due to competition among the 116 OMCs operating in the country, which are mindful of the decrease in volumes anytime there is a price increase.
Oil rose on Wednesday, hitting $40 a barrel for the first time since March, supported by lower U.S. inventories, expectations OPEC+ will keep oil output cuts in place and signs of demand recovery from the coronavirus crisis. Suggesting a supply glut is on the way out, the American Petroleum Institute said on Tuesday U.S. crude inventories fell by 483,000 barrels. The government’s official supply report is due out later on Wednesday. Brent crude futures for August were up 59 cents, or 1.5%, at $40.16 by 0840 GMT, reaching a high of $40.53, the highest since March 6. U.S. West Texas Intermediate (WTI) crude for July gained 80 cents, or 2.2%, to $37.61.
The Ghana Union of Traders Association (GUTA) is unimpressed by the transitional arrangement of the UNIPASS system at the ports. President of the Association, Dr Joseph Obeng told JoyBusiness the UNIPASS System “is fraught with challenges that cause delay, which eventually cost the importer in terms of demurrage and rent charges.” The Ghana Revenue Authority (GRA) on June 1, 2020, shut down the Ghana Community Network (GCNet) clearing system as the new Integrated Custom Management System (ICUM) popularly known as Unipass, took over. This came after piloting the system at some ports including the Takoradi and the Tema Ports and training for stakeholders.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6182 Sell 5.6238
GB£GH¢ Buy 7.0789 Sell 7.0883
CAD$GH¢ Buy 4.1628 Sell 4.1664
JP¥GH¢ Buy 0.0516 Sell 0.0516
ZARGH¢ Buy 0.3333 Sell 0.3337
EU€GH¢ Buy 6.3671 Sell 6.3726
CHN¥GH¢ Buy 0.7923 Sell 0.7926
GH¢CFA Buy 102.9340 Sell 103.0229
GH¢NG₦ Buy 64.0455 Sell 64.2234
BITCOIN Trading Price $9,764.91 ▲$132.27 ▲+1.37%
ETHEREUM Trading Price $242.70
BUSINESS NEWS | GHANA AND BEYOND
The Bank of Ghana has released an amount of GH¢5.5 billion as first tranche of the GH¢10 billion of the COVID-19 Relief Bond, Finance Minister Ken Ofori-Atta announced in Parliament in Accra on Thursday. In a memo to the House, the Minister said, the programme, launched earlier by the Government of Ghana is to trigger the emergency financing provision as result of challenges brought on by COVID-19 pandemic.The GH¢5.5 billion first installment of the bond was released on May 15, 2020. With high hopes of Ghana’s economy to rebound after the pandemic, Mr Ofori-Atta characteristically, and in a prayerful tone made biblical allusions with hope in God that Ghana would regain its economic strength.
Ghana’s is expected to lose about GH¢15.85 billion in revenue as a result of the coronavirus pandemic, a report from the Ministry of Finance states. The nation is targeting about GH¢67 billion in revenue (tax and non-tax) for this year. According to the Finance Ministry, Ghana’s fiscal gap as a result of the COVID-19 will hit about GH¢21.42 billion. This is made up of Revenue Shortfall Impact of GH¢15.85 billion and COVID-19 related expenses of GH¢5.57 billion. Due to this, the government submitted to Parliament to access emergency financing of GH¢10 billion from the Bank of Ghana consistent with the provisions in Section 30 of the Bank of Ghana Act, 2002 (Act 612), as amended.
Ghana accepted all the GH¢751.33 million bids from investors via the issuance of the 3-year bond. The yield however was 18.85%, 0.10% higher than the 2-year bond issued last month, according to auctioning results. The government raised GH¢668.76 million at 18.75% from the issuance of the 2-year bond last month. Analysts had forecast a yield of less than 19%. Because of the impact of the COVID-19 on the global economy, the amount raised from both domestic and foreign investors was good, some analysts told Class Business. Chunk of the funds will be used to finance maturing debts. The debt instrument, which is expected to mature in 2023, was be opened to both resident and non-resident investors. Absa, Databank, Fidelity, IC Securities, Stanbic were joint lead managers for the issuance of the debt instrument.
Ghana earned US$3.3 billion from the Year of Return initiative, Tourism, Arts and Culture Minister Barbara Oteng-Gyasi has said. According to her, the earnings were proceeds from accommodation, food, shopping, local transport and entertainment. Also, GH¢6 million was, however, spent on promoting the Year of Return campaign in and out of the country. The minister emphasised that the average expenditure per tourist was $2,391.
Gold output from the large-scale mining sector increased by six percent to 2.989 million ounces in 2019 from 2.807 million ounces in 2018, according to the annual report of the Ghana Chamber of Mines. During the period, small-scale production decreased to 1.588 million ounces in 2019 from 1.984 million ounces in 2018. The 20 percent fall in the small-scale mining sub-sector resulted in an overall decline in total gold production to 4.577 million ounces in 2019 from 4.792 million ounces in 2018, Mr Eric Asubonteng, President of the Chamber, said in the report during a virtual annual general meeting. The large-scale sector improved on its contribution to national gold production, from 59 percent in 2018 to 65 percent in 2019 whereas the small-scale sector accounted for 35 percent of national gold production in 2019; a decline from 41 per cent in 2018.
The National Petroleum Authority (NPA) has announced a review of prices on petroleum products starting June 1, 2020. NPA in a statement said the decision was taken by Cabinet and communicated to the National Petroleum Authority (NPA) through the Ministry of Energy. The statement signed by Chief Executive Officer of the NPA Hassan Tampuli, read “We write to inform you of a review of the BOST Margin in the Price Build-Up (PBU) of petroleum products effective 1st June, 2020. This is in line with a decision taken by Cabinet and communicated to the National Petroleum Authority (NPA) by the Ministry of Energy.” This however means Ghanaians will from 1st June 2020 pay more for fuel at the various filling pumps as government has increased a tax component on petroleum products.The BOST Margin, which used to be three pesewas per litre has been increased by an additional three pesewas by the government.
The Millennium Development Authority (MiDA), is to provide US$1.5 million to the Ghana Standards Authority (GSA) to construct an Air Conditioner Test Containment Building and Testing Laboratory. The project is part of the Millennium Challenge Corporation Power Compact Two. Speaking to Citi Business News , a Technical Controller at MiDA, Ing. William Amuna, said the objective is to enhance efficiency in electricity consumption. He explained that the construction work on the Containment Building for a Testing Laboratory which will assess the performance of ductless Room Air conditioning (RAC) Systems will begin on June 1, 2020. He said the funding was provided by the Millennium Challenge Corporation (MCC), an Agency of the United States Government, under the Energy Efficiency and Demand Side Management Project of the Ghana Power Compact.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6175 Sell 5.6231
GB£GH¢ Buy 6.9140 Sell 6.9232
CAD$GH¢ Buy 4.0668 Sell 4.0710
JP¥GH¢ Buy 0.0521 Sell 0.0522
ZARGH¢ Buy 0.3190 Sell 0.3194
EU€GH¢ Buy 6.2378 Sell 6.2433
CHN¥GH¢ Buy 0.7868 Sell 0.7874
GH¢CFA Buy 105.0658 Sell 105.1584
GH¢NG₦ Buy 64.0535 Sell 64.2314
BITCOIN Trading Price $9,515.45 ▲$340.06 ▲5.28%
ETHEREUM Trading Price $235.64 ▲$10.61 ▲7.25%
RIPPLE Trading Price $0.2085 ▲$0.0086 ▲6.15%
Bloomberg USDGHS Cross Rate - *5.7792*
BUSINESS NEWS | GHANA AND BEYOND
The continuous increase demand for gold as a safe haven for investors in the current times of global economic uncertainty, has driven producer inflation for April 2020 upwards to 7.4 percent, representing a 0.6 percentage point increase relative to the rate recorded in March 2020 of 6.8 percent, data from the Ghana Statistical Service (GSS) has shown. The mining and quarrying sub-sector’s producer price inflation increased by 14.3 percent over the March 2020 rate of 23.7 percent, to reach 38.0 percent in April 2020. The price of gold on the international market shot up from about US$ 1,639 per ounce on the April 01, 2020 to US$ 1,760 per ounce as at April 15, before then declining slightly to US$ 1,688 per ounce by the end of April. However, the commodity is currently trading at US$ 1,753 per ounce as at May 20, 2020.
The interest rate on Ghana Government’s 600m stimulus package for Micro, Small and Medium Enterprises (SMEs) has been reviewed from 5 to 3 percent. This information was revealed on Thursday, May 21, 2020 when the National Board for Small Scale Industries (NBSSI) was giving updates on COVID-19 alleviation program at the Ministry of Information press briefing.
Addressing the press, the Chief Executive Officer of NBSSI Kosi Yankey Ayeh said after stakeholder deliberations, the 5 percent interest rate was reduced to 3. “After deliberations with the president, finance ministry and the industry. After conducting a survey of about 1700 MSMEs in Ghana, initially we had suggested 5 percent but the president in consultation with the team decided to review that interest rate due to the plight of the Ghanaian MSMEs at a time such as this, to 3 percent.”
She however noted that the one-year moratorium remains unchanged and “businesses have the option to ensure that they choose a moratorium that works best for them.” The NBSSI boss also indicated that businesses with over 99 staff are not eligible for the GH¢600m stimulus package.
After staying virtually flat for about a year and a half, the average lending rate of banks has started to show signs of decline in April after the Bank of Ghana reduced the monetary policy rate the month before. The Summary of Economic and Financial data (May 2020) published by the Bank of Ghana has shown that average lending rate has finally moved out of its comfort zone to a step downward. Prior to recording 22.38 percent in April, the average lending rate has since the past 17 months (December 2018) not come below 23 percent. The decline, though marginal, offers a glimpse of hope for the private sector that lending rates may come down in future if economic conditions make it possible for the Monetary Policy Committee (MPC) of the central bank to further cut the policy rate after it reduced it by 150 basis points to 14.5 percent in March, following the outbreak of the coronavirus in the country.
Oil prices tumbled about 2% on Friday on rising U.S.-China tensions and doubts about how quickly fuel demand would recover from the coronavirus crisis. Fuel demand plummeted in recent months as the pandemic caused governments to impose restrictions on movement and businesses closed their doors. Oil has rallied in recent days as activity started to resume. KorBut prices dropped after China said on Friday it would not publish an annual growth target for the first time. Beijing also pledged more government spending as the pandemic kept hammering the economy. “The coronavirus has nullified a decade of global oil demand growth and the recovery will be slow,” said Stephen Brennock of broker PVM.
President Akuffo Addo has announced Auditing and accounting firm KPMG to serve as technical advisors to the GH¢1 billion stimulus package to be managed by the National Board for Scale Industries. According to the President, the auditing firm will support the efforts by the Loan committee and other state agencies handling the fund to effectively achieve the target for the program. President Akuffo Addo used the opportunity to assure all micro small and medium enterprises that the disbursement of the fund will be transparent. He made the announcement when launching the programme at flagstaff house in Accra.
The Ghana Association of Bankers (GAB), and the Ghana Interbank Payment and Settlement Systems (GhIPSS) have agreed to extend the waiver of fees on digital banking platforms to June 20, 2020. The waiver, which took effect on March 23, 2020, was part of efforts to encourage the use of digital payment options to limit the possible spread of the novel Coronavirus through the use of cash. However, the Ghana Association of Bankers disagreed with plans by GhIPPs to resume the charges on the GhIPSS Instant Pay (GIP), Mobile Money Interoperativity (MMI) and ACH Direct Credit. This was after GhIPSS in an earlier announcement to banks and other partner agencies, stated that it will from May 23, 2020, resume the charging of fees on mobile money interoperability, GhIPSS instant pay, Banks & Fintechs offering Instant Pay services to their respective customers, and banks leveraging the ACH Direct Credit platform for bulk payments such as salaries.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6125 Sell 5.6181
GB£GH¢ Buy 6.8371 Sell 6.8462
CAD$GH¢ Buy 4.0007 Sell 4.0041
JP¥GH¢ Buy 0.0522 Sell 0.0522
ZARGH¢ Buy 0.3175 Sell 0.3179
EU€GH¢ Buy 6.1133 Sell 6.1187
CHN¥GH¢ Buy 0.7869 Sell 0.7879
GH¢CFA Buy 107.2053 Sell 107.3000
GH¢NG₦ Buy 64.1106 Sell 64.2886
BITCOIN Trading Price $9,026.74
BUSINESS NEWS | GHANA AND BEYOND
The Monetary Policy Committee of the Central Bank has kept its policy rate unchanged at 14.5 percent following a sudden rise in inflation, the Governor of the Bank of Ghana (BoG), Dr Ernest Addison has said.This follows an earlier March 2020 meeting which saw a 150-basis-point reduction in the monetary policy rate to 14.5 percent, with some commercial banks impressed upon to further slash on lending rates to ease access to credit. Speaking at a press briefing on Friday, May 15 at the central bank, Dr Ernest Addison said; “On the growth outlook, baseline projections show a sharp downturn in GDP growth with the economy operating below capacity in the medium-term. Under the circumstances and given the balance of risks to inflation and growth, the Committee decided to keep the policy rate unchanged at 14.5 percent.”
The Bank of Ghana (BoG) has agreed to loan up to GH¢5.5 billion to government to curtail income revenue shortfalls caused by the coronavirus pandemic by close of the year, Governor of the central bank, Dr. Ernest Addison has disclosed. Speaking at a press briefing on Friday, May 15 to announce the monetary policy rate, Dr Addison explained the BoG’s financing of government’s deficit forms part of the Bank’s assets purchase programme which was set aside due to an agreement with the International Monetary Fund (IMF). Adding, the first tranche of GH¢5.5 billion has been advanced to government at a rate of 14.5 percent which prevails the current monetary policy rate.
The Ghana Statistical Service (GSS) has announced on Wednesday May 13 that the year-on-year inflation of imported goods was 4.9%, while the inflation of local goods was 13.1% on average. The GSS said this is the highest rate of local inflation and the lowest rate of imported goods inflation since the rebasing in August 2019. Month-on-month inflation for imported goods was 0%, while month-on-month inflation for local goods was 4.5%. The main contributor to local inflation was the inflation of locally produced foods, the GSS added. Regarding the national rate, the GSSS said inflation jumped from 7.8% in March 2020 to 10.6% in April 2020, an increase of 2.8%. The GSS blamed the upward trend on the partial lockdown of the Greater Accra, Greater Kumasi, Kasoa and Tema areas due to the coronavirus pandemic.
The Bank of Ghana (BoG) has said on Friday May 15 that its preliminary estimates shows that growth in 2020 is likely to be between 2.0 and 2.5 percent. The central bank said leading indicators of economic activity during the first quarter of the year suggests some slowdown, reflecting the restrictions, social distancing, and the partial lockdown measures introduced by the government in the middle of March. Retail sales picked up in March 2020 due to panic buying which preceded the partial lockdown, while consumption, proxied by Domestic VAT receipts, dipped. The slow conditions in economic activity is reflected in port activities and a sharp decline in tourist arrivals. The slowdown also affected the private sector’s contributions to social security.
The Ghana cedi declined in value by about 1.4% to the US dollar in the first four months of this year. However, as of 13 May 2020, it has depreciated by 1.5% to the American currency, the March 2020 Bank of Ghana Summary of Financial and Economic Data disclosed. The cedi was, therefore, trading at GH¢5.607 on the interbank forex market but higher at about GH¢5.95 at the forex bureau. As of today,17 May 2020, the cedi had declined in value by 1.47% to trade at GH¢5.6155 to the US dollar on the interbank forex market but selling at GH¢5.79 at the forex bureau.
Ghana’s debt stock has shot up to GH¢236.1 billion from GH¢219.2 billion for the first quarter of 2020, according to new figures by the Bank of Ghana. The increase means that Ghana has added GH¢16.9 billion between January to March of 2020. The figures contained in the Central Bank’s Summary of Economic and Financial Data represents an increase of 59.3 percent of the GDP. The debt stock for the domestic side stood at GH¢111.3 billion representing 47.1%, while the external component of the debt reached GH¢124.8 billion.
The Bank of Ghana (BoG) has said it will strengthen the capacity of the ARB Apex Bank to enable it provide support for rural and community banks who are facing liquidity challenges. Speaking at the Monetary Policy Committee (SDI) meeting on Friday May 15, the Governor of the Bank of Ghana, Dr Ernest Addison, said the Specialized Deposits Institutions (SDIs) sector has played a key role in extending access to financial services to small households and businesses. “Such customers are at high risk of being disproportionately impacted by the pandemic, either because they have lost their livelihoods in the informal/micro and small business sector or have lost their jobs.
The Bank of Ghana (BoG) has noted that the use of electronic means of payment went up due to the partial lockdown of Accra and Greater Kumasi following the Coronavirus outbreak. The lockdown led to the decline in cash transactions, the central bank said. President Nana Addo Dankwa Akufo-Addo, as part of his measures to tackle the COVID-19 in Ghana placed restrictions on the movements of person in these areas in the country. At the Monetary Policy Committee (MPC) meeting in Accra on Friday May 15, the Governor of the BoG, Dr Ernest Addison, said the lockdown resulted in a decline in currency as consumers resorted to the use of electronic modes of payment.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.6099 Sell 5.6155
GB£GH¢ Buy 6.7975 Sell 6.8060
CAD$GH¢ Buy 3.9782 Sell 3.9820
JP¥GH¢ Buy 0.0523 Sell 0.0523
ZARGH¢ Buy 0.3025 Sell 0.3028
EU€GH¢ Buy 6.0676 Sell 6.0724
CHN¥GH¢ Buy 0.7868 Sell 0.7877
GH¢CFA Buy 108.0227 Sell 108.1081
GH¢NG₦ Buy 64.1403 Sell 64.3184
BITCOIN Trading Price $9,730.91 ▲$400.35 ▲4.29%
ETHEREUM Trading Price $207.47 ▲$8.13 ▲4.08%
RIPPLE Trading Price $0.2022 ▲$0.0037 ▲1.90%
USDGHS Cross Rate - *5.7850*
BUSINESS NEWS | GHANA AND BEYOND
Banks’ investment portfolio as at end-February 2020 was in favour of long-term debt instruments, the Bank of Ghana revealed. The latest banking sector report which made this known, said banks’ share of securities further increased to 70.4 percent in February 2020 from 66.3 percent in February 2019. It said the proportion of short-term bills in total investments accordingly declined to 30.9 percent from 32.7 percent between the two periods, while the share of investments in equities remained negligible at 0.9 percent. It added that the share of fixed and ‘other’ assets, which constituted the non-earning assets of banks, remained virtually unchanged at 8 percent.
The central bank says it is hopeful that the reduction in primary reserve requirements will broaden and expand the coverage of additional funds to support lending to all critical sectors of the economy. According to the Bank of Ghana’s latest banking sector report for March 2020, the reduction in primary reserves from an initial 10 percent to 8 percent is expected to cushion external shocks in the formal and informal sectors. “The Bank of Ghana is hopeful that the reduction in the prudential capital adequacy ratio from 13.0 percent 11.5 percent will compliment the reduction in primary reserves by helping to boost credit expansion to support all sectors of the economy,” the report added. Meanwhile, the BoG adds reduction in provision for loans in other loans mentioned in the category, from 10 percent 5 percent, could minimize the impact of the potential challenges of non-performing loans on loan loss provisions and profit margins of banks.
The Open Budget Survey (OBS) has revealed that although globally, budget transparency level remains low with the average score of 45, Ghana’s performance has improved from 50 in the last round of survey in 2017 to 54 in 2019. The result ranks Ghana 44th out of 117 countries. A statement issued in Accra and Copied to the Ghana News Agency by George Osei-Akoto Bimpeh, Country Director, SEND GHANA said
“This makes Ghana a relatively higher performer on the budget transparency score in comparison with six other West African countries (Sierra Leone- 39, Liberia- 38, Sao Tome- 24, Nigeria- 21, Equatorial Guinea- 5, and Gambia- 4).” It said the reason for the performance was that Ghana had increased the availability of its budget documents by particularly publishing the In-Year Reports online and in a timely fashion.
GCB Bank in the first quarter of 2020 recorded a profit after tax of GH¢92.4 million ($15,862,068.68). This according to the bank’s published financial results represents a 40% growth. From January to March 2020, GCB’s profit before tax went up by about 34% to record GH¢122.4 million. The bank’s total tax liabilities reached GH¢30 million. The income streams for the bank were improvement in interest income such as charges on deposits into cheque accounts as well as certificate of deposit. Meanwhile, GCB Bank’s total assets increased to GH¢12.67 billion for the first quarter of the year. The increase was by GH¢1.84 billion. The bank’s total assets are items they can lay claim to.
The increase was mainly due to the increase in loans and advances, investment in securities and cash and cash equivalent.
President Akufo-Addo has nominated Mr. Francis Boateng as the new Managing Director for the Tema Oil Refinery following the resignation of Mr Kweku Asante Berko. Mr Asante Berko left the post following allegations of his involvement in a bribery scandal by the Securities and Exchange Commission in the U.S.A. Mr. Francis Boateng was until his appointment, the General Manager for Commercial Operations at the Ghana National Gas Company. He was previously engaged as a consultant, working in the capacity of Contracts and Fuel Manager during the project implementation phase of a 350MW Combined Cycle Power Plant for Cenpower Generation Company Limited (Cenpower), an Independent Power Producer (IPP) company in Ghana.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.5982 Sell 5.6038
GB£GH¢ Buy 7.0543 Sell 7.0625
CAD$GH¢ Buy 4.0296 Sell 4.0332
JP¥GH¢ Buy 0.0523 Sell 0.0523
ZARGH¢ Buy 0.3051 Sell 0.3054
EU€GH¢ Buy 6.1256 Sell 6.1296
CHN¥GH¢ Buy 0.7925 Sell 0.7934
GH¢CFA Buy 107.0147 Sell 107.0845
GH¢NG₦ Buy 64.2742 Sell 64.4528
BITCOIN Trading Price $8,861.53 ▲$1130.04 ▲12.36%
ETHEREUM Trading Price $208.86 ▲$12.22 ▲9.85%
RIPPLE Trading Price $0.2189 ▲$0.0015 ▲1.21%
Ghana Enforces Mandatory Wearing of Face Masks
Ghana has made the wearing of face masks mandatory following the lifting of the three-week partial lockdown imposed on parts of the country.
In his eighth address to the nation on Sunday, April 26, President Nana Addo Dankwa Akufo-Addo encouraged Ghanaians to wear masks wherever they went to help contain the spread of the virus, adding that the Ministry of Health was going to come out with guidelines on the wearing of masks in the country. “Like the World Health Organization (WHO) has recently advised, I want to encourage you to wear a mask wherever you are, as it will help you not to contract the virus and keep it clean.
Following the President’s statement, the Ministry of Health has said it is mandatory for the public to wear mask when going to places where social distancing cannot be maintained.
Directive
A directive issued by the sector minister, Mr. Kwaku Agyemang-Manu said “I hereby direct the use of face masks in all public places where it may be difficult to maintain social distancing. The general public is encouraged to wear mask or face covering when going out whether sick or not or attending to a sick person. Incorrect use of face mask carries a high risk of infection.”
“The following groups or persons are required at all times to wear masks: Food vendors and sellers at markets, commercial vehicle drivers and attendants, commuters on public transport, persons in public and commercial centers, facilities and buildings including but not limited to offices, bars, workshops, restaurants, sports arenas and spas, salons, shopping malls, churches, clinics and hospitals and all other facilities accessible to the public whether privately or publicly owned”.
The directive, the minister said was in pursuant of section 169 of the Public Health Act, 2012, (Act 851).
Mr. Agyemang-Manu however indicated that where masks were not available homemade ones could be used. He stressed that homemade masks should be produced following laid down Food and Drugs Authority guidelines to ensure all masks met safety standards.
Local production
The wear-a- mask policy has opened the doors for local production of nose masks as a result of which masks made out of print fabric have flooded the markets. Leading the local production of the nose masks are five garment companies that are currently producing personal protection equipment (PPE) for the fight against the coronavirus disease (COVID-19).
They are Sleek Garments Limited; Dignity, DTRT Apparel; Cadling Fashion Limited and Alfie Designs. The five companies were benefactors of a Ghana Export-Import (GEXIM) Bank $10 million financial support to help the companies to expand their businesses; boost their production capacity and place them in a better position to employ more people.
Following that investment, the government relied on those companies to provide 3.6 million PPE during this era of COVID-19 pandemic. DTRT, for instance has increased its workforce from 1,200 workers to 2,700. The company is producing 50,000 nose masks daily, with an assurance to scale up to 200,000 masks a day.
Confirmed cases
Confirmed cases of Coronavirus in Ghana, has surged to 2,074. According to data provided by the Ghana Health Service website on Thursday, April 30, 2020, 403 new cases were recorded in the country since the last update on April 28, 2020. The death toll from the illness has risen to 17 with 212 recoveries.
The Greater Accra Region - 1,795 - has the highest number of infections among the 12 regions with confirmed cases, followed by the Ashanti Region - 99 and the Eastern Region with 21 cases.
The Savannah, Bono, Ahafo and Bono East Regions are yet to record any cases.
Source: Ghana Diaspora Recruiter
BUSINESS NEWS | GHANA AND BEYOND
The Bank of Ghana has recently instructed banks in Ghana not to pay dividends to shareholders for the 2019 and 2020 financial years because of the
Coronavirus ( COVID-19 ) pandemic and its effects. Banks in Ghana would have, normally, declared and paid dividends, as approved by their shareholders at the Annual General Meetings (AGMs), around this time of the year in Ghana, but that is not to be because of such instructions from the central bank - the Bank of Ghana, given reasons for such a decision as how the banks would be negatively impacted if they (the banks) should dole out such monies.
The Volta Regional Directorate of the Ministry of Trade and Industry has unveiled eight development projects under government’s One-District-One Factory (1D1F) with two of such projects already existing. Mrs Josephine Dzotsi, the Volta Regional Director of Ministry of Trade and Industry, disclosed this to the Ghana News Agency in an interview in Ho. She said Caltech Ventures Limited, which is into the production and processing of cassava into ethanol and carbon dioxide and the Volta Forest Products Company (VFPC), a wood processor, were receiving financial re-engineering and facilitation from government through the Exim Bank to bolster their businesses. She said six new projects had emerged under the flagship programme and sited at various locations in the Volta and Oti regions, namely, KOP Farms Consultancy Limited, which are into the cultivation and processing of grains at Volo, in the North Tongu District.
The Government of Ghana is constructing 80 warehouses with the capacity to store up to 80,000 metric tonnes (MT) of food items aimed at ensuring food security in the country. Each warehouse would have the capacity to store up to 1,000 MT of food items and expected to be ready by June, this year. Speaking at a media briefing to update the public on food security situation, Dr Owusu Afriyie Akoto, the Minister of Food and Agriculture, said Government had targeted to construct a total of 200,000 warehousing capacity to safeguard the country’s food security efforts.
Producer inflation for March 2020 has declined for the second consecutive month to 6.8 percent, from 11.8 percent recorded in February, 2020, according to data released by the Ghana Statistical Service (GSS). This represents a 3.7 percentage point decrease in producer inflation relative to the rate recorded in February 2020. The Producer Price Index (PPI) measures the average change over time in the prices received by domestic producers for the production of their goods and services. From the data, the decline emanated largely from the manufacturing sector, which constitutes more than two-thirds of the total industry, as well as the mining and quarrying sector.
Remittances to sub-Saharan Africa are projected to fall from US$48 billion last year to US$37 billion in 2020 – a drop of 23.1 percent – because of the economic consequences of the COVID-19 pandemic, according to the World Bank. It said that the continent would, however, register an expected recovery of four per cent next year. The Bank explained: “The anticipated decline can be attributed to a combination of factors driven by the coronavirus outbreak in key destinations where African migrants reside, including in the EU area, the US, the Middle East and China.
Ghana will need US$5bn or more to put the economy on the road to recovery after the coronavirus pandemic, Minority Leader Haruna Iddrisu has suggested. Ghana’s legislature last week approved the US$1billion Rapid Credit Facility (RCF) from the International Monetary Fun3d (IMF) to support the country’s efforts to tackle the pandemic and its economic repercussions. The purpose of the IMF’s RCF is to provide rapid and concessional financial assistance to low-income countries facing an urgent balance of payments need, without ex-post conditionality.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.5421 Sell 5.5477
GB£GH¢ Buy 6.8329 Sell 6.8403
CAD$GH¢ Buy 3.9317 Sell 3.9341
JP¥GH¢ Buy 0.0516 Sell 0.0516
ZARGH¢ Buy 0.2920 Sell 0.2922
EU€GH¢ Buy 5.9885 Sell 5.9939
CHN¥GH¢ Buy 0.7833 Sell 0.7841
GH¢CFA Buy 109.4374 Sell 109.5361
GH¢NG₦ Buy 64.9245 Sell 65.1049
BITCOIN Trading Price $7,636.70 ▲$112.08 ▲1.49%
ETHEREUM Trading Price $196.22 ▲$3.89 ▲2.02%
RIPPLE Trading Price $0.1965 ▲$0.0027 ▲1.42%
BUSINESS NEWS | GHANA AND BEYOND
The government of Ghana accepted all bids submitted for the 3-year bond auctioned on Thursday, 16 April 2020. According to the results, the government accepted all the GH¢849.24 million total bids submitted for the debt instrument which will mature in 2023. The initial pricing guidance was between 18.50% and 19.00%. But the clearing coupon rate is estimated at 19.00%. Class Business understands that the majority of the funds raised will be used to settle the maturing debt. The instrument was opened to both resident and non-resident investors. Each Bond has a face value of GH¢1, whereas the minimum bid was GH¢50,000 and multiples of GH¢1,000 thereafter. Absa, Databank, Fidelity, IC Securities and Stanbic Bank were the joint book runners.
The government of Ghana’s fiscal deficit is projected to reach 9.5% of GDP by the end of this year. That is according to a revised forecast by the International Monetary Fund. Excluding energy and financial costs, the budget deficit of GDP will, however, be 6.4% of GDP. This is higher than the targeted 4.9% of GDP projected by the government this year. According to the Fiscal Stability Act, the benchmark for fiscal deficit to GDP ratio is 5%. However, the expected higher budget deficit is due to the coronavirus pandemic which obviously will affect certain sectors of the economy and thus depriving the nation some revenue.
The European Union (EU) is expected to announce a US$20 billion package to deal with COVID-19 effect on food and agriculture on the African continent. The European Commissioner for Agriculture, Janusz Wojciechowski, outlined the EU support package for Africa that should eventually exceed $20 billion during FAO-AU Ministerial (virtual) Meeting on the Impacts of COVID-19 on Food Security in Africa, on Thursday April 16. The World Bank’s Simeon Ehui also detailed support initiatives, including the possibility of re-purposing $3.2 billion in uncommitted funding. Speaking for the African Development Bank, Martin Fregene concluded with details of a COVID-19 response programme that includes targeted technical and financial support.
The global economy is expected to shrink sharply by three percent in 2020 because of the Coronavirus pandemic, according to the World Economic Outlook for April. In its release copied to the Ghana News Agency, it said this contraction would be much worse than during the 2008-09 financial downturn. In a baseline scenario that assumes that the pandemic fades in the second quarter of the year and containment efforts can be gradually unwound, the global economy is projected to grow by 5.8 percent in 2021, as economic activity normalises, helped by policy support. The statement said effective policies are essential to forestall the possibility of worse outcomes and the necessary measures to reduce contagion and protect lives are important investments in long-term human and economic health.
Ghana’s leading waste management company, Zoomlion Ghana Limited, on Friday presented a cheque of $20,000 to the Noguchi Memorial Institute for Medical Research (NMIMR) at the University of Ghana. Noguchi, one of the best biomedical research institutes in the world has been at the forefront in the fight against the covid-19 pandemic in the country. It has been commended by government and Ghanaians in general for ensuring the testing of 50,000 samples within a space of four weeks as government intensifies the fight against the pandemic. Head of Communications at the Jospong Group of Companies, the parent company of Zoomlion, Madam Sophia Lissa, commended workers of Noguchi for playing an important role in the fight against Covid-19.
The Food and Drug Authority (FDA) has raised concerns over counterfeit chloroquine flooding the Ghanaian market. This information follows the World Health Organisation’s (WHO) Global Surveillance and Monitoring System, which said fake chloroquine products were circulating in Africa. “These chloroquine products with different presentations are confirmed as falsified on the basis that they deliberately [and] fraudulently misrepresent their composition or source,” the FDA said in a statement signed and issued by its Chief Executive, Delese A.A. Darko, said. According to the FDA, these fake products do not contain the correct amount of the active pharmaceutical ingredients, based on the result of preliminary or full laboratory analysis. Also, some of the products are either not produced by the manufacturer whose name is stated on the product labels, or the batch number and date do not correspond to genuine manufacturing records.
Dealers of Liquified Petroleum Gas (LPG) have begun removing the 13.5% levy imposed by the National Petroleum Authority on LPG. This follows a directive by the Minister of Energy, John Peter Amewu for the NPA to scrap the newly-introduced LPG Cylinder Recovery Levy levy. According to Gabriel Kumi, Vice Chairman of the Liquified Petroleum Gas Marketing Companies Association of Ghana, many of the LPG stations have removed the levy which he described as nuisance. “I pass through some LPG stations and they have removed the 13.5% levy. “We are not in good times yet, this is the time for Ghanaians to enjoy some freebies, this is the time our President is out there giving out free water, giving out free electricity, giving out free food; let’s us also contribute our part.
The National Board for Small Scale Industries (NBSSI) has begun documentation for the disbursement of the GH¢600 million soft-loan scheme pledged by government to alleviate negative impacts of the COVID-19 pandemic on small scale businesses across Ghana. The NBSSI, has set April ending for the commencement of payment of the GH¢600 million stimulus package along with a GH¢90 million MasterCard programme also being readied to come onstream. That means access to the loan will fully be operational from May and beyond. The loan, which comes with one-year moratorium and two-year repayment period, is expected to ease some of the burden on the operations of micro, small and medium sized businesses. The loan scheme and MasterCard’s programme – NBSSI MasterCard Foundation Recovery and Resilience Programme for MSMEs – according to NBSSI’s Executive Director, Kosi Yankey-Ayeh, will benefit over 60,000 businesses.
The Ghana Association of Bankers (GAB), has contributed GH¢2 million towards the construction of the COVID-19 Infectious Disease and Isolation Facility at the Ga East Municipality Hospital. The donation for the 100-bed facility, was done under the auspices of the Ghana COVID-19 Private Sector Fund, the sponsor of the project. President Nana Addo Dankwa Akufo-Addo delivered the keynote address at the virtual groundbreaking ceremony for the project, estimated at US$3.5 million. A statement issued by GAB, and copied to the Ghana News Agency on Saturday, said it was committed to contributing its bid to mitigate the socio-economic impact of the respiratory disease.
Heads of businesses in the private sector have broken ground for the commencement of works on Ghana’s first Infectious Disease Isolation and Treatment Facility at the premises of the Ga East Municipal Hospital. President Nana Addo Dankwa Akufo-Addo was expected to commission the construction of the 100-bed facility which is being funded by the Ghana COVID-19 Private Sector Fund. But in accordance with the ban on social distancing, the President undertook the exercise virtually from the confines of his office at the seat of Presidency, Jubilee House. Speaking via a video conference call on Friday, April 17, President Akufo-Addo said; “This fund that’s been created by private sector operators to assist in the fight against the Covid-19 pandemic is an excellent idea. It’s an excellent initiative and it’s a tremendous demonstration of the private sectors’ commitment to the welfare of the nation.”
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.5072 Sell 5.5128
GB£GH¢ Buy 6.8797 Sell 6.8871
CAD$GH¢ Buy 3.9229 Sell 3.9256
JP¥GH¢ Buy 0.0512 Sell 0.0513
ZARGH¢ Buy 0.2918 Sell 0.2921
EU€GH¢ Buy 5.9932 Sell 5.9966
CHN¥GH¢ Buy 0.7777 Sell 0.7783
GH¢CFA Buy 109.3882 Sell 109.4502
GH¢NG₦ Buy 65.3358 Sell 65.5172
BITCOIN Trading Price $7,086.18
Ghana launches COVID-19 Tracker App
The Vice-President, Dr Mahamudu Bawumia, has launched the Ghana COVID-19 Tracker App to track contacts of persons affected by the virus through various datalinks and connect such people to health professionals. The app would provide information on people who happened to be at the same event, location, country or other defined location and to know where they might have been as a group over time.
It uses telecom data that is shared from a common platform to facilitate contact tracing, quarantine reliability and other means necessary to put an end to the disease.
Launching the App
Launching the app via livestream teleconference, Dr Bawumia said the tracker would also periodically provide a list of telephone numbers to the Ghana Immigration Service of people who had visited certain countries around the world in recent times for possible use in determining who to target for an extra screening. He explained that the tracker was also useful in obtaining reliable information on people in quarantine. “If people who were required to self-quarantine were doing so and information is provided in advance, it would allow the country to respond quickly to treat them, “Dr Bawumia said.
Dr Bawumia indicated that the current spread of the disease required innovative ideas, including the application of technology to deal with it, adding that, if Ghana hoped to flatten the disease curve and stop the spread, then the tracker offered a solution.
He encouraged Ghanaians to download the app and provide the required information so that health officials can provide the needed support
Downloading the App
The Minister of Communication, Mrs. Ursula Owusu Ekuful said that the GH COVID-19 Tracker app has been downloaded 16,000 times in less than 24 hours after it was launched on Monday, April 13, 2020. According to her, about 100 reports of Coronavirus-like symptoms have also been made through the app, adding that the reports would be forward to the Ghana Health Service.
Mrs. Owusu-Ekuful noted that the app was Ghana specific and that “We are interested in tracking the virus in our country and so it is specifically designed to be used in Ghana.” People, who are not using smart phones, can dial *769# and follow the necessary instructions to get their symptoms recorded, she said. Ghana currently has 641 confirmed COVID-19 cases with 83 recoveries.
Flouting movement restrictions
In another development, 406 people across the country have been arrested for flouting the government’s movement restrictions directive over the coronavirus pandemic.
The Head of Prosecutions for the Greater Accra Region of the Ghana Police Service, ACP Lydia Donkor, said out of the number, 103 are in custody and that 248 have been granted bail.
She said “people are still having parties, going to the beaches” as well as organizing weddings ceremonies, which are in clear violation of the Imposition of Restrictions Act, which bars such activities.
According to her, the police and allied agencies will deal with all those violating the government’s movement restriction directive. ACP Donkor explained that “If you are arrested, you will be prosecuted after successful investigations”, pointing out that “if you are found guilty, you are likely to pay a fine ranging from GH¢12,000 to GH¢50,000 or term of four up to 10 years or both.”
Source: Ghana Diaspora Recruiter
COVID-19: Ghana Imposes Restriction of Movement in Hotpots
Ghana has imposed restrictions on the movement of persons within the Greater Accra and Kasoa as well as Kumasi and its environs in order to give the government the opportunity to stave off the COVID-19 pandemic. The areas under partial lockdown have been identified as the hotspots of the coronavirus transmission.
The country now has 378 confirmed coronavirus cases, six deaths and four recoveries. Two are in critical condition and 370 are mild cases who are in isolation and are been managed at home or at treatment centers.
The president, Nana Addo Dankwa Akufo-Addo first imposed a 14-day partial lockdown on March 30, 2020 and extended it for a week in his sixth address to the nation on Ghana’s enhanced response to the Coronavirus Pandemic on Thursday, April 9. The extension takes effect from Monday, April 13. He said the lockdown measures imposed to combat the disease have so far yielded moderate successes, however “this fight is not yet over and we are by no means out of the woods yet.”
Closed borders
The country’s borders remain closed as part of measures to deal with the pandemic. President Nana Addo Dankwa Akuffo-Addo said the decision to keep the country’s borders shut was based on data which indicated that the overwhelming majority of confirmed cases came from travelers or from people who had come into contact with travelers.
“We now see that the decision to closed down our borders has been justified. One hundred and five of the cases came from those who were mandatorily quarantined and tested on their arrival on March 21 and 22 March. One hundred and ninety-two of the cases came from travelers who entered our country before the closure and their contacts. Seventy-nine per cent of the 378 confirmed cases are thus imported,” said President Akufo-Addo.
Coronavirus updates
Giving a breakdown of the figures, the President said 37,405 samples have so far been taken for testing, of which 31,933 are in Accra, and 5,472 are in Kumasi. As at Wednesday, April 8, a total of 14,611 contacts of the samples collected had been tested for the virus in Accra and Kumasi.
President Akufo-Addo added that 11,308 contacts were tested in Accra, and 52 of them were found to be positive, while 3,303 contacts had been tested in Kumasi, and 25 found to be positive.
“Whilst the results are encouraging, in suggesting a limited number of positives and community spread, we expect to be able to test some 10,000 additional samples in the coming week to give us a clearer picture to enable us take a decision on the way forward,” he emphasized.
Water/electricity bill.
As part of measures to mitigate the social and economic impact of the pandemic on Ghanaians, the government, on Sunday, April 5, announced that it will absorb the water and electricity bills for all Ghanaians for the next three months, i.e. April, May and June.
The President on Thursday, April 9, announced more mitigation measures. He said “government will fully absorb the electricity bills for the poorest of the poor, that is free electricity for persons who consume zero to 50 kilowatt hours a month for this period.”
“In addition, for all other consumers, residential and commercial, Government will absorb, again, fifty per cent of electricity bill for this period, using your March 2020 bills your benchmark, he added.
He said the move was to support industry, enterprises and the service sector, as well as provide some relief to households for lost income.
Frontline workers
Furthermore, government has placed a high priority on the procurement of personal protective equipment (PPEs) to protect the lives of the frontline health workers,
So far, government has acquired masks, examination gloves, reusable goggles, coveralls, N-95 respirators, waterproof gumboots, reusable face shields, hand sanitizers and shoe covers for use by health workers in all the districts.
That, notwithstanding, Government, in the face of the global shortage of PPEs has engaged with local manufacturing companies to assist in the domestic production of PPEs.
An insurance package of GH¢350,000 for each health personnel and allied professional at the forefront of the fight, has been put in place, with a daily allowance of GH¢150 being paid to contact tracers. Government has also decided that all health workers will not pay taxes on their emoluments for the next three months.
All frontline health workers will receive an additional allowance of 50 per cent of their basic salary per month, for March, April, May and June. Health workers are also enjoying free bus rides to and from work, for the entire duration of the restrictions.
Interventions
The government has also initiated the Coronavirus Alleviation Program (CAP), to protect households and livelihoods, support micro, small, and medium-sized businesses, minimize job losses, and source additional funding for promotion of industries to shore up and expand industrial output for domestic consumption and exports.
Through this program, about 400,000 individuals and homes in the affected areas of the restrictions in Accra and Kumasi, are provided with food. The food is in the form of dry food packages and hot meals, and delivered to vulnerable communities in Accra, Tema, Kumasi and Kasoa.
Government, in collaboration with the National Board for Small Scale Industries (NBSSI), business and trade associations and selected commercial and rural banks, will roll out a soft loan scheme up to a total GH¢600 million, which will have a one-year moratorium and two-year repayment period for micro, small and medium scale businesses.
Cleaning of markets
Towards ensuring the cleanliness of the country, markets and lorry terminals in all the 16 regions have been cleaned and disinfected. In the Greater Accra and the Greater Kumasi area, the Ministry of Sanitation and Water Resources, together with personnel drawn from the Police, Military, Fire Service and Prisons Service have embarked on desilting gutters, collection and disposal of garbage from homes, public places, markets and vehicle terminals.
Government took the extra step of closing a few markets in Accra and Kumasi, where traders and market women had flouted the rules for social distancing.
BUSINESS NEWS | GHANA AND BEYOND
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.
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.4350 Sell 5.4404
GB£GH¢ Buy 6.6959 Sell 6.7042
CAD$GH¢ Buy 3.8593 Sell 3.8630
JP¥GH¢ Buy 0.0503 Sell 0.0503
ZARGH¢ Buy 0.3095 Sell 0.3099
EU€GH¢ Buy 5.9945 Sell 5.9988
CHN¥GH¢ Buy 0.7669 Sell 0.7678
GH¢CFA Buy 109.3480 Sell 109.4265
GH¢NG₦ Buy 66.2045 Sell 66.3884
BITCOIN Trading Price $6,289.37 ▲$140.06 ▲2.28%
ETHEREUM Trading Price $131.06 ▲$1.61 ▲1.25%
RIPPLE Trading Price $0.1729 ▲$0.0086 ▲6.15%
BUSINESS NEWS | GHANA AND BEYOND
Ghana’s total exports exceeded imports by US$780 million as at February this year, representing 1.1 percent of the total value of all goods and services produced in the country. This year’s figure is also an increase compared to the US$378 million or 0.6 percent of Gross Domestic Product (GDP), recorded in February 2019. According to data provided by the Bank of Ghana, this was due to the fact that the country’s imports declined for the period, while it also benefited from increase in some prices of commodities like gold and cocoa. For February 2020, Ghana raked in a total of US$2.76 billion from the export of traditional commodities like cocoa, gold and oil. This is an increase from the US$2.67 billion recorded in the previous year.
The Ghana Interbank Payment and Settlement Systems Ltd (GhIPSS) has waived off charges on electronic payments services used by its partner financial service providers. This initiative is in collaboration with banks, fintechs and mobile money operators across the country. According to GhIPSS, the suspension of charges is in line with the measures outlined by the Central Bank of Ghana to contain the impact of Coronavirus pandemic on the Ghanaian economy. “This waiver is regardless of the volume and value of transactions, until further notice,” GhIPSS said. A statement released by GhIPSS and copied to GhanaWeb said, from Monday, March 23, 2020, all banks, fintech and mobile money operators, leveraging the following platforms to offer electronic payment services to the general public shall not incur any service charges:
Ghana is to modify its water sector information system to incorporate scientific and local knowledge systems in response to the country’s highly variable climate. This will be included in the National Water Policy which provides an opportunity for users to avoid quick fixes and focus on cross-sectoral efforts and strategies that are based on a solid understanding of the impacts of climate change on water resources. In a message to mark World Water Day the Minister of Sanitation and Water Resources Cecilia Dapaah said illegal mining popularly known as ‘galamsey’, and improper liquid and solid waste disposal, among others, have affected the quality of water bodies.
Gold mining company, Golden Star Resources (GSR), is planning to invest some US$10 million to revive operations at its Prestea Mine and to position it for profitability. The new capital will be invested in machinery, operation of a second level underground mining operation, access development, extensional drilling and other operations to get the mine to the next level and to enhance efficiency. Mr Andrew Wray, Chief Executive Officer of Golden Star Resources, told journalists in Accra that although there were challenges at the Prestea Mine, the potential was there for it to be successful.
Based on the average price prediction of US$40 per barrel for crude oil in 2020, Ghana could realize US$743 million from crude oil sales this year, the African Centre for Energy Policy has projected. This is against the expected US$1.567 billion, anchored on a price prediction of US$62.61 per barrel, according to the 2020 Budget. The shortfall is about 53% and is expected to affect the fiscal economy significantly [physical infrastructure and debt servicing]. Ghana’s infrastructure development programme is heavily dependent on oil revenues; about 80% of government’s domestic revenue for its capital budget is to be sourced from the Annual Budget Funding Amount (ABFA).
➖➖➖➖➖➖➖➖➖
Secure your Tomorrow with *MY OWN PENSION* on your MTN Mobile Money and make contributions that you can rely upon tomorrow. To Register, Simply dial **170#*, select *Option 5* (Financial Services) and select *Option 4* (Pensions and Investments) to Begin
➖➖➖➖➖➖➖➖➖
INTERBANK FOREX RATES
US$GH¢ Buy 5.3686 Sell 5.3740
GB£GH¢ Buy 6.2340 Sell 6.2424
CAD$GH¢ Buy 3.6991 Sell 3.7029
JP¥GH¢ Buy 0.0484 Sell 0.0485
ZARGH¢ Buy 0.3029 Sell 0.3032
EU€GH¢ Buy 5.7964 Sell 5.8015
CHN¥GH¢ Buy 0.7595 Sell 0.7604
GH¢CFA Buy 113.0668 Sell 113.1663
GH¢NG₦ Buy 67.0229 Sell 67.1160
BITCOIN Trading Price $6,459.20 ▲$599.80 ▲10.22%
ETHEREUM Trading Price $133.27 ▲$9.87 ▲8.01%
RIPPLE Trading Price $0.1582 ▲$0.0091 ▲6.11%
COVID 19: How is Ghana responding to the Epidemic
Ghana has banned travellers who have been to any country with more than 200 Coronavirus (covid-19) cases as a measure to prevent the spread of the ravaging Coronavirus. The ban took effect on Sunday, March 15, 2020, a day after the country recorded six confirmed cases of covid-19.
A statement from the Ministry of Information said, however, that Ghanaian citizens and persons with Ghanaian resident permits would be allowed into the country but would be made to observe a mandatory 14-day self-quarantine.
On the night of Monday, March 16, 2020, two Italian nationals travelling from Europe, were prevented from entering Ghana in compliance with the travel advisory directive issued by the government and currently the country has refused entry to 31 passengers, while a number of airlines were not allowed to disembark passengers.
In a message to the nation on Sunday, March 15, the President announced that an earlier travel ban for all government functionaries was still in force.
Public gatherings
He directed that all public gatherings, including conferences, funerals, church and other religious activities be suspended for four weeks to ensure social distancing. All universities, schools were closed to do distance learning. Funerals and weddings have been suspended for the next four weeks, albeit, burials could be performed, but with not more than 25 people in attendance. The guidelines are subject to review at any point in time.
President Akufo-Addo further tasked the Ministry of Local Government to liase with relevant authorities to improve hygienic standards in the markets and ensure that supermarkets and malls practice the highest standards of personal hygiene.
He charged the Attorney General and Minister for Health to fast track processes to ensure legislative processes are implemented to back directives.
Compliance
In conformity with the President’s directives, churches and mosques in the country have suspended public gatherings. While encouraging their members to stay spiritual, the churches also admonished them to observe all the safety measures that would protect them and others from the pandemic. Some churches are holding services through their online platforms.
Akufo-Addo thanks Boris Kodjoe and Bozoma Saint John in SoNA address
President Nana Addo Dankwa Akufo-Addo has lauded actor Boris Kodjoe and international marketing executive Bozoma Saint John for the key roles they played in making Ghana’s Year of Return a success.
The ‘Year of Return, Ghana 2019’, was a major initiative inviting the Global African family, home and abroad, to mark 400 years of the arrival of the first enslaved Africans in Jamestown, Virginia.
Many Africans in the diaspora including Hollywood celebrities visited the country during the year-long event, however, Kodjoe and Saint John came up for special mention during President Akufo-Addo’s State of the Nation Address on Thursday, February 20, 2020.
President Akufo-Addo applauded the two African Americans, saying that they embraced their Ghanaian heritage and played a key role in the effort to build lasting bridges between Ghana and the African American community.
“I shall thank two people in particular, who have embraced their Ghanaian heritage and have played a key role in our effort to build lasting bridges between Ghana and African Americans. Hollywood star Boris Kodjoe and international marketing icon Bozoma Saint John,” President Akufo-Addo said.
“We are grateful to both of them for leveraging their star power to attract thousands to the land of their fathers and to drive a fresh narrative that says, Ghana is a land of opportunity, visit, invest and make it your home. We appreciate deeply their contribution and that of many others to the success of this project”.
Boris Kodjoe in late 2018 brought to Ghana 40 of his friends in Hollywood after the government’s announcement on the commencement of the Year of Return.
They included his wife, Nicole Ari Parker, Micheal Jai White, Tina Knowles-Lawson, Anthony Anderson, Idris Elba, Naomi Campbell, Rosario Dawson, Jidenna, Ebro Darden, Gabourey Sidibe, Cynthia Bailey, Bozoma Saint John, Jay Morrison, and Mike Hill.
These celebs toured various tourist sites in Ghana including visiting former slave sites like the Elmina Castle.
Micheal Jai White was installed enstooled as chief in Akwamu in the Eastern Region of Ghana by the Akwamuhene Odeneho Kwafo Akoto III at the Bogyawe Palace, Akwamufie.
He was given the stool name Odupong— literally meaning ‘a tree firmly rooted’ during a traditional ceremony.
Boris Kodjoe was also conferred a citation for “leading our kinsmen home” by the Akwamuhene.
Their presence in the country attracted many Hollywood stars including Steve Harvey, Samuel L Jackson, Conan O’Brien, Ludacris, rapper TI, his wife Tiny and many stars to visit the country.
Source: Ghana Diaspora Recruiter
Ghana Acts to Sustain Gains of Year of Return
When President Nana Addo Dankwa Akufo-Addo proclaimed 2019 as the Year of Return, his vision was not just to attract the diasporan community to make a birthright journey home.
It is now clear that the president also intended to strengthen the ties of solidarity among all people of African descent by bringing together Africans, well-wishers and lovers of freedom to strengthen the collective commitment to ensure that the blots in Africa’s history, such as the Trans-Atlantic Slave Trade and slavery, never reoccurred.
It is noteworthy that the proclamation of the Year of Return, to commemorate the 400th anniversary of the arrival in 1619 of the first 20 slaves from West Africa to Virginia, which later became part of the United States of America (USA), was made at the Washington Press Club, in Washington D.C., in front of the Congressional Black Caucus in the USA.
President Akufo-Addo insisted that it should be a global campaign, a position that informed his visit to the Caribbean and also promoting the campaigns in five nations, culminating in some of the Heads of States of those countries coming to Ghana.
The Year of Return was a great success. The country attracted many visitors from the diaspora, including celebrities and others who trace their ancestry to Ghana.
The Ghana Tourism Authority predicted the Year of Return would attract 500,000 extra visitors. However, official data indicate an additional 237,000 visitors from January to September 2019.
Beyond the Return
President Akufo-Addo has again initiated the ‘Beyond the Return’, a sequel to the Year of Return to ensure that the country reaps from cooperation with people in the Diaspora.
Launching the “Beyond the Return, The Diaspora Initiative” the President called on all to engage Africans in the diaspora and persons of African descent more positively in areas such as trade and investment co-operation, skills, knowledge and development.
He explained that ‘Beyond the Return’ which is a 10-year project was to ensure that Ghana derived maximum dividends from its relations with the diaspora in mutually beneficial co-operation, and as partners for shared growth and development.
He called on diasporans to help change the African narrative, which had concentrated on diseases, hunger, poverty and illegal mass migration.
“Let us all remember that the destiny of all black people, no matter where they are in the world, is bound up with Africa. We must help make Africa the place for investment, progress and prosperity, and not from where our youth flee in the hope of accessing the mirage of a better life in Europe or the Americas,” he said.
Citing the Chinese experience as an example, President Akufo-Addo said when foreign companies, in the late 1970s reduced their investments in China, it was the Chinese in the diaspora that shored up the economy.
According to the Washington D.C. based Migration Policy Institute (MPI), half of the foreign direct investment, $26 billion, that transformed China into a manufacturing powerhouse in the 1990s, originated from the Chinese in the diaspora, he said.
“That is why I am excited and keen on this new initiative of “Beyond the Return”, and the renewed enthusiasm around building Africa together. Let us imbibe in ourselves a deep consciousness and understanding of the goals and history of the African peoples,” he said.
The Minister for Tourism, Arts and Culture, Mrs Barbara Oteng-Gyasi urged the diasporan community to look beyond the ‘year of return’ and make permanent commitments in the country to help propel growth.
Africans in the diaspora must see these commitments as a duty in honour of their ancestors who faced the hardships of slavery.
The Chief Executive Officer of the Ghana Tourism Authority, Mr Akwasi Agyeman said the social impact of the initiative has translated into schools like one built by Fuse ODG at Akosombo and another by the Adinkra group”
Sankofa Account
Following the successful celebration of the ‘Year of Return’ initiative the Ministry of Finance has created a product to help drive investments from the diaspora into the country to help boost the economy.
Known as the ‘Africa Sankofa Account or the Diaspora Savings and Investment Account,’ the interest accruing banking product is targeted at Africans living abroad, who desire to invest in the Ghanaian economy
The ministry is collaborating with universal banks to market the product targeted at institutional and retail investors in the diaspora, raking in about $3 billion.
The Minister of Finance, Mr Ken Ofori-Atta, who announced the initiative in Accra, said the account would be operational within the next three months
Mr Ofori-Atta said through the initiative, the government was creating a favourable environment for Africans in thediaspora to make investment contributions into the economy.
The account, when fully operational, would help ease the integration of the global African family abroad into the society and put Ghana on the map as the preferred investment destination.
“This is to encourage the diaspora to see themselves as Ghanaians when conducting business in Ghana or buying a land,” Mr Ofori-Atta said.
Mr Ofori Atta explained that although many people in the diaspora had the desire to invest in the economy, the challenge over the years had been how to identify the right products that did not conflict with the country’s securities rules.
As a result, he said, by the new initiative the government was seeking to encourage the full participation of the diaspora through such secure investment products.
“What is important for Ghana is how to create an instrument that enables the average or retail person as a Ghanaian, or Caribbean or African American to participate in a way that doesn’t conflict with securities rules,” Mr Ofori-Atta said.
The desire to invest into the economy by Africans in the diaspora, according to the minister, was evident in the volume of remittance transactions that had been recorded over the past few years.
For instance, he said, remittances from the diaspora into the country had been rising from $2.4 billion in 2017 to $2.5 billion in 2018.
The amount, he said, was expected to hit $3.2 billion when data from the final quarter of 2019 was released.
Although banks have such diaspora and offshore accounts through which Ghanaians abroad and other investors channel their funds, this is the first time the government was taking advantage of the large pool of investable funds offshore that could be harnessed for long-term development.
The Minister of Tourism, Culture and Creative Arts, Mrs Barbara Oteng-Gyasi, said many people the ministry had engaged so far were interested in making some investment commitments in the country, hence the importance of the ‘Sankofa Account’.
“The account provides an opportunity for even those with limited funds to invest in the country,” the minister said
The Chief Executive Officer of the Ghana Tourism Authoity (GTA), Mr Akwesi Agyeman, for his part, said the ‘Sankofa Account’ would help move the relationship between Ghana and the diaspora from a mere visit to one based on investment.
“We believe we have a responsibility to extend a hand of welcome back home to Africans in the diaspora.” says Nana Akufo-Addo, President of Ghana
Source: Ghana Diaspora Recruiter
