Kofi Ahovi

  The bread industry in Ghana, a staple in the diets of the populace, has long been dominated by local producers. However, recent attention has turned to a new sprawling factory situated along the Accra-Tema motorway. This development has raised concerns within the community, as fears grow that large-scale production might lead to the sidelining of smaller players. Historically priced at GH¢5 a decade ago, the cost of a loaf of bread has experienced fluctuations due to exchange rate shifts and disruptions from global markets, such as the conflict in Ukraine. These changes in dimensions, weight, and flavour have prompted local bakers to navigate the intricate balance between production costs and retail prices, all with the aim of achieving a breakeven point. The escalating expenses linked to bread production inputs have compelled producers to pass on the increased costs to consumers. This move has resulted in some local bakers closing shops, while others have clung on, hoping for more f

 Some 15 million people in Africa were pushed into poverty in 2022 due to high food and energy prices, the African Development Bank (AfBD) has reported. However, the Bank indicated that the poverty effect of energy price increases was higher than food prices. This was because the energy impact was fully passed through household income, while the negative impact of high food prices was partially offset by increases in household income from net sellers. In Africa, the additional number of people falling into extreme poverty due to energy price inflation is estimated at 10.2 million, bringing the combined poverty effect of soaring food and energy prices to about 15 million people,” the bank noted. This was contained in the Bank’s 2023 West Africa Economic Outlook report, which noted that the region’s average poverty rate increased by 10 per cent between 2019 and 2022. It was also observed that relative to the counterfactual scenario, the international poverty rate based on the US$ 2.15-a-

  Organized Labour has said that it will reject the government’s plan to introduce a Cost of Living Allowance (COLA) in next year’s salaries negotiations instead of increasing the salaries of public sector workers. COLA is an allowance given to government employees as short-term relief when immediate salary increments cannot be made. Organized Labour says that it is rejecting the COLA because it won’t have any positive effect on pension payments and other benefits.   Speaking to journalists in Accra, Deputy General Secretary of the Trade Union Congress (TUC), Joshua Ansah, said that Organized Labour will demand a rise in salary instead of a mere COLA. I don’t think it will be wise for us to go for COLA because COLA does not affect our pensions, doesn’t affect our earnings. So we think that it is better for us to go straight and get what is due us. And remember that I made the point that if the government wants to go to the IMF we want to caution the government that their decisions and

  The Bank of Ghana (BoG) has debunked claims that it has financed the government to the tune of GH¢80 billion. BoG said it did not provide credit to the government from 2017 to 2019 or 2021. The Bank said it was only in 2020 that it issued the GH¢10 billion COVID-19 bond to the government, and another GH¢37.9 billion in 2022. BoG said it only supported the COVID-19 Pandemic Bond in 2020, and also supported the government to pay salaries and settle government debt maturities when the capital market shut down access to Ghana in 2022. The BoG explained that its decision to take a 50 percent haircut on the government’s debt saved the economy from collapse and sent a positive signal to external partners. The apex bank incurred a loss of GH¢55.12 billion in equity in 2022, largely as a result of the government’s Domestic Exchange Programme (DDEP). This was because its non-marketable holdings of government of Ghana instruments, including long-term stocks, a COVID-19 Bond and overdraft, were

  Vodafone Cash has partnered with Remitly Inc., a Seattle-based international money transfer company to bring significant improvements to the remittance process for Vodafone Cash subscribers. The collaboration seeks to provide a more convenient, secure, and efficient way for beneficiaries in Ghana to receive funds from abroad directly into their Vodafone Cash wallets. It will reshape the remittance landscape in the country, providing Vodafone Cash subscribers with an accessible and efficient solution for receiving funds fr om abroad. In a release issued by the company, it said “Ghana ranks as the second-highest receiving country for remittances in Africa, with inflows worth $4.8 billion in 2022. The exponential growth of mobile money platforms like Vodafone Cash has contributed to this boom in remittance flows.” By partnering with Remitly, Vodafone Cash aims to increase its share of the remittance business and strengthen its position in the market, whilst affording customers convenien

  ECOBANK Ghana PLC has doubled the salaries of 70 customers in the final draw of the ECOBANK Double Salary Reloaded Promotion. Out of the 70, eight had their salaries quadrupled in the live draw which took place at the bank’s head office in Accra. Customers from Tanoso in the Bono Region, Achimota in the Greater Accra Region, Takoradi Market Circle, Adum-Kumasi, Westlands in the Greater Accra Region and Kasoa in the Central Region were largely the beneficiaries in the final draw. Speaking at the draw, the Executive Director of Consumer Banking, Dr Edward Botchway, said the bank was a reliable partner that would be loyal to the Ghanaian customer through thick and thin. Beyond hard work, you need a partner who can guide and help you; and ECOBANK is that partner," he stated The Head of Liability Products and Mobile Money, Jerry Siaw-Lash, for his part, said customers with the ECOBANK salary account who benefitted from the promotion also got free life insurance worth GHS10,000, which

  Trade relations between Ghana and the United States of America (USA) remains resilient.  This is evident from last year’s bilateral trade in goods which totalled $3.7 billion – an all-time high, the American Ambassador to Ghana, Virginia Palmer, said. In a written interview with the Graphic Business, she also indicated that “our bilateral trade in services is growing as well.   Our trading relationship and the more than 100 American companies active in the Ghanaian market support jobs and economic prosperity on both sides of the Atlantic,” she added.   Regarding the attractiveness of Ghana to U.S. investors, she said: “U.S. companies continue to knock on Ghana’s door; it is up to the government to create the right conditions to win their partnership and investment.”  With support from the International Monetary Fund (IMF), we are hopeful that Ghana will pay arrears and implement the structural reforms needed to ensure it is back on the path to sustainable economic growth.”   On how t

  Interest rates on the short-term Treasury market are beginning to tickle up again after falling to around 19 per cent. Results of a tender held on August 11 for government securities issued yesterday (August 14) indicated that interest on the 91-day treasury bill has increased to 26%, with that of the 182-day bill also increasing to 27.56%.  The interest on the 364-day bill is now pegged at 30.6%. Interest rates on government short-term securities reached alarming rates in December 2022, with the 91-day rates hitting 35%. Following the Domestic Debt Exchange Programme (DDEP) and the approval of the country’s US$3 billion extended credit facility programme with the International Monetary Fund (IMF), the interest rates started dropping, with the rates for the 91-day dropping to 19%. However, it appears the rates have started rising again, increasing to 20%, 22%, 24% and now 26%. This poses significant threats to the government’s debt restructuring efforts, with financial analysts and e

  The East Akim Rural Bank at Osiem in the Eastern Region posted a profit before tax of GH¢374, 649 last year. This is against a profit of GH¢331,325 recorded in the previous financial year. In the same period under review, the bank's total assets rose from GH¢11 million to GH¢15 million while total deposits also shot up from GH¢8.3 million to GH¢10.7 million. The acting Chairman of the Board of Directors of the bank, Paul Yaw Asirifi, who announced this, said the modest success of the bank was made notwithstanding the dire economic challenges the country was facing presently. Asirifi, who was speaking at the 5th Annual General Meeting of the bank at Osiem on August 6, said due to the profit posted, the bank was able to give out loans and advances totalling GH¢6.4 million to its customers last year. According to him, since the bank was located in the community where agriculture was the main occupation of the people, the bank as part of its corporate social responsibility also spons

Early interest by Nigeria’s leading oil exploration firms including Lekoil Nigeria Limited in exploring the Dahomey Basin, a combination of inland and coastal offshore fields stretching from Ghana, through Togo and Benin to southwest Nigeria, has yielded a potential 5 billion barrels of oil and billions of cubic feet of gas reserves, which could turn the region into the next frontier of commercial oil exploration writes  ISAAC ANYAOGU . Two centuries ago, the name Dahomey gained notoriety for the slave trade with Europe and the eventual humiliation the Kingdom suffered when it was forced to pay tribute to the Oyo empire. Today, Dahomey is renowned as an oil patch important enough to earn Lagos State, the classification of an oil-producing state. This happened because oil companies, especially indigenous operators, poured millions of dollars into the dream that the Nigerian sector of the Dahomey Basin covering three different states – Lagos, Ogun, and Ondo – would hold vast deposits of

 To enhance decision-making for businesses to thrive, the Ghana Statistical Service (GSS) has announced that it will conduct a comprehensive census of informal and formal businesses across the country. The exercise according to the Service will be conducted in two phases with the initial one to be held in mid-October 2023 and the second phase in 2024. The Service added that the census which will also include not-for-profit businesses will be an improvement of economic censuses held since 1962.   Speaking at the Ghana 2023 Integrated Business Establishment Survey (IBES I) Stakeholders Consultative Meeting, the Government Statistician, Prof. Samuel Kobina Annim said the survey would benefit the country immensely. One of the goals that we will achieve with the census is what we are calling helping businesses escape the informality trap. So as a service, we’ve identified that from different perspectives we’ve looked at businesses as informal or persons working in businesses as informal. So

The Council of the Ghana Stock Exchange (Exchange) is pleased to announce the appointment of Mr. Frank Yoofi Mensa Berle as the Deputy Managing Director of the Exchange, with effect from July 11, 2023. He will be responsible for providing leadership and strategic direction to the various operational departments of the Exchange. Prior to this appointment, Frank was the Head of Finance and Administration. Since joining the Exchange in January 2004, Frank has held diverse roles covering various areas including finance, operations, administration, recruitment & human capital management, surveillance, and clearing & settlement. A chartered accountant by profession, Frank has additional chartered qualifications in taxation, financial economics, and wealth management. He is a Fellow of the Chartered Institute of Taxation, Ghana; a member of the Institute of Chartered Accountants, Ghana; Association of Certified Chartered Economics, USA; Global Academy of Finance & Management, USA;

 The 2022 National Best Farmer, Oheneba Nana Yaw Sarpong Siriboe I, Oheneba Nana Yaw Sarpong Siriboe I, has launched an initiative to encourage the youth to take up agriculture as their main occupation. Dubbed “Rethink Agriculture”, the initiative aims at reshaping the perception and motivative the youth to venture into agriculture. According to him, the initiative also seeks to inspire the youth to view agriculture as a dynamic business beaming with potentials. The rethink programme is a clarion call urging our youth to perceive agriculture and the opportunities along its value chain as more than a traditional vocation but an avenue of boundless opportunities,” he stated. He said the “Rethink Agriculture” programme is also expected to equip the youth with the tools,  knowledge, information, education and skills that will not only help sustain agricultural legacy but transform it into a force that drives innovation and economic growth. He further said that though he was a trained engin

  Surgeons in the United States have announced that a pig kidney they transplanted into the body of a brain-dead human patient has functioned normally for more than a month, a promising sign in the effort to address widespread organ donation needs. Surgeons at the New York University Langone Transplant Institute said on Wednesday that the milestone is the longest a pig kidney had functioned in a person, albeit a deceased one. We have a genetically edited pig kidney surviving for over a month in a human,” institute director Robert Montgomery told reporters. He said the results provide “further assurances” for any future studies in living patients. The pig kidney had been genetically modified to omit a gene that produces biomolecules that human immune systems attack and reject. We’ve now gathered more evidence to show that, at least in kidneys, just eliminating the gene that triggers a hyperacute rejection may be enough — along with clinically approved immunosuppressive drugs — to succes

 The Ghana cedi is expected to post a mixed-performance this week as a widening inflation differential may pose depreciatory pressures. This is because investors are seeking investments in dollar denominated or fixed assets. The Ghana cedi remained stable against the US dollar last week on the retail market with a mid-rate of ¢11.43 at the close of trading last Friday, August 11, 2023. This kept its year-to-date at about -11.0% to the American greenback. The local currency, however, lost marginally (week-on-week) against the dollar on the interbank market, bringing its year-to-date loss to about 21.00%. The unit also slid slightly against the the GBP (-0.05% w/w) on the interbank market but gained (0.21% w/w) vs the euro. This was largely due to the marginal increase in inflation which is compelling investors to think twice about investments in cedi denominated assets. Additionally, the US inflation cooled at 3.2% year-on-year from 3.00% in June 2023, below the consensus estimate of 3.

  Prices of petrol and diesel are likely to increase averagely by about 5.7% over the current mean price of ¢12.45 per litre, beginning tomorrow, August 16, 2023, for the next two weeks. The price of Liquefied Petroleum Gas is also expected to go up by about 11.9%. According to the Chamber of Petroleum Consumers (COPEC), the expected increase is due to the 11.00% rise in prices of finished products on the international market and the about 6.79% surge in the price of crude oil, even though the forex or dollar exchange rate has relatively decreased from a previous average of ¢11.7185 to ¢11.4538 (-2.26%) per $1. All Pump Prices are expected to be within (±5%) error margin of COPEC’s prediction. With the new prices, petrol is expected to sell at ¢12.97 per litre on the average, while diesel will go for ¢13.43 per litre. The 14.5 kilogramme LPG cylinder is expected to sell at ¢178.36 within the window. Commenting, the Executive Secretary of COPEC, Duncan Amoah, urged government to do all

  The Data Protection Commission will today August 14, 2023, begin active enforcement of the Data Protection Act 2012 (Act 843). This means businesses that have failed to register with the Commission as Data Controllers but are processing personal data are liable to summary conviction to a fine or a term of imprisonment. Falling under the radar for non-compliance include Hisense Group and Mawarko Fast Food out of many others on the compiled list for prosecution. In a statement, the Data Protection Commission said it intends to recover some millions of cedis owed the state by non-complying authorities that have been notified of their legal obligations but have failed to act in compliance with Act 843. “Due to the sensitive nature of personal data and the reality that data is the new oil, issues relating to data subject rights and data controller responsibilities requires compliance to an existing legal framework that ensures that data subject privacy rights are not violated in the pursu

 Government recorded a 15.35% oversubscription of treasury bills sale but at a higher cost. According to auction result from the Bank of Ghana, the government received ¢3.507 billion from the sale of the short term securities. Total bids tendered were estimated at ¢3.535 billion. Chunk of the T-bills sale came from the 91-day bill. ¢2.526 billion was secured, as government accepted almost all the bids. For the 182-day bill, ¢261.69 million was obtained from the bids tendered. In actual fact, the government accepted all the bids. This time around, the bids received for the one-year bill were over three times more than that of the six-month bill. Indeed ¢747.81 were the bids tendered, but the government accepted ¢721.03 of the bids offered. Meanwhile, interest rates shot up across the yield curve. Whilst the 91-day bill went up to 26.09% from 25.57% the previous week, that of the 182-day bill rose 0.31% to 27.59%. The 364-day bill also reached 30.69%, from the 30.49% recorded the precedi

 In a resolute proclamation, Ghana’s Minister for Trade and Industry, K.T. Hammond, has underscored the Ghanaian Government’s unwavering commitment to propelling the country’s private sector towards amplified exports, with a particular focus on the expansive U.S. market. Cognizant of the vast consumer landscape in the United States, Hammond underscored the government’s determined stance to foster a conducive environment for Ghanaian enterprises to capitalize on this pivotal avenue. Addressing an august gathering at the 2023 U.S.-Ghana Business EXPO on August 10, 2023, Hammond articulated that the government’s compass is fixed on empowering the private sector to navigate the intricacies of the U.S. market under the strategic banner of the African Growth and Opportunity Act (AGOA). “The U.S.-Ghana EXPO stands as a testament to the enduring commitment to cultivate robust bilateral trade affiliations between Ghana and the U.S.,” affirmed Hammond, a sentiment that resonates with the substan

 The Ghana Stock Exchange (GSE) on Thursday witnessed a total volume of 43,111 shares exchanging hands, valued at GH¢73,166.14. While this represented a modest uptick of 3.49% in trading volume, a simultaneous dip of 6.75% in the overall value traded indicated a mixed sentiment among market participants. Scancom Plc. (MTNGH) continued to assert its dominance on the volume chart, accounting for a substantial 64.36% of the total value traded with its transaction of 30,777 shares, valued at GH¢47,088.81. Following suit, SIC made its presence felt by trading 4,021 shares valued at GH¢804.2. On the other hand, EGH recorded relatively lower traded volumes, with a turnover of GH¢3,915.00, securing its place among the top 5 traded equities. Trading activity on Thursday however, did not witness any gainers or decliners, portraying a certain equilibrium in the market dynamics. Consequently, the total market capitalization experienced a lateral movement, closing at GH¢73.48 billion, indicative of

State oil company, Ghana National Petroleum Corporation (GNPC) has been directed by Parliament’s Committee’s on Mines and Energy to expedite the transfer of Jubilee Oil Holdings Limited (JOHL) to its subsidiary company, Explorco. According to the report of the Committee on Mines and Energy on the 2023 Work Programme of GNPC, the committee “instructed GNPC to take immediate steps to transfer its shares in the offshore company, JOHL to its subsidiary company, GNPC Explorco.” Jubilee Oil Holdings Limited, a subsidiary of GNPC, was acquired through a $164m share purchase agreement between Ghana and Anadarko WCTP Company in 2021 when the latter announced plans to offload its interests. Jubilee Oil Holding Limited, made its first oil lifting of 944,164 barrels of oil in the Jubilee Field in the first half of 2022. The amount was realised from the lifting of 944,164 barrels of oil from the Jubilee fields and Anadarko CWTP Company in the first half of 2022. In 2022 alone, the interest of JOHL

  The Bank of Ghana incurred an unprecedented loss in 2022 which has sent it into an over GHc50 billion negative equity position.  ELORM DESEWU & Toma Imirhe explain what went wrong and why, and examine the implications for the bank itself and Ghana’s economy as whole. Even as the Ghana’s commercial banking industry is grappling with the debilitating impacts of government’s ongoing public debt restructuring exercise on both their balance sheets and their profitability, their regulator, the Bank of Ghana has revealed that it is leading by example – and is taking harsh criticism for doing so. The central bank released its annual financial statements for 2022 last week revealing that it incurred a total loss of some GHc60.8 billion last year, which has not only wiped away its entire shareholders equity (comprising core capital and reserves) but infinitely worse has left it with negative equity of a colossal GHc55.12 billion as against a positive equity position of GHc5.7 billion a yea

  The Ghana Ports and Harbour Authority (GPHA) has justified its decision to increase port duties, arguing that its port tariffs remain competitive compared to Ghana’s neighbours. GPHA attributed the revision of port tariffs to global economic challenges, inflation, and currency depreciation. In a statement, Ghana Union of Traders’ Association President Dr. Joseph Obeng called on GPHA to suspend the implementation of its new tariff as it will have a toll on crippling businesses. Responding to GUTA, GPHA in a statement dated August 3, explained that, it was “compelled to implement the revised tariff due to the current global economic challenges including Inflation and currency depreciation which have increased our operational cost.” Just like all other increments done in the past, the rates of increment in this year’s tariff adjustment were informed by the outcome of a comparative port tariffs studies we conducted in our neighbouring Ports of Lomé and Abidjan, to ensure that at every gi