Kofi Ahovi

  Average lending rates shot up sharply to 35.58% in December 2022, from 33.87% recorded in November 2022, data from the Bank of Ghana has revealed. This is equivalent to 2.82% interest rate on loans per month. According to the January 2023 Summary of Economic and Financial Data, average lending rates have been increasing sharply since a year ago. In actual fact, it has gone up by 15.42% since January 2022. It stood at 20.16% in January 2022, but shot up sharply to 24.27% in June 2022 and then to 26.46% in July 2022. It again went up to 27.96% in August 2022 and later to 29.81% in September 2022. It continued its rising trend reaching 33.87% in November 2022 and 35.58% in December 2022 respectively. The higher lending rates have been caused by a record inflation rate [54.1% in December 2022] and significant exchange rate depreciation [about 37% year-to-date in December 2022]. This has consequently increased the cost of doing business in the country. The average lending rate, howeve...

  Profit in the banking industry declined by 18.9% in 2022, driven by the mark-to-market losses on investments, higher impairments on loans, and rising operating costs. This is compared to 12.3% annual growth recorded in 2021 According to the Bank of Ghana, the banks profit-after-tax was ¢3.9 billion at the end of December 2022. But Net interest income grew by 23.0% to ¢15.8 billion, higher than the growth of 14.5% in 2021. Net fees and commissions also went up by 27.4% to ¢3.7 billion, from the growth of 24.8% recorded in 2021. Accordingly, operating income increased by 30.9%, compared with 14.6% recorded a year earlier. The Central Bank said the strong outturn in operating income was however moderated by increased operating expenses and provisioning during the year. Operating expenses rose by 32.2% in December 2022, compared with 14.2% growth in 2021. Provisions also increased sharply by 184.0% in December 2022 relative to a contraction of 4.7% a year earlier, due to the strong u...

  The International Monetary Fund is projecting a moderate 3.8% growth rate for Sub-Saharan Africa in 2023 amid prolonged fallout from the COVID-19 pandemic. This is a modest upward revision since October 2022, and higher than the 2.8% it forecast for Ghana. It has firmed its 2.8% Gross Domestic Product (GDP) for Ghana in 2023 According to its January 2023 World Economic Outlook, the small upward revision for 2023 (0.1 percentage point) reflects Nigeria’s rising growth in 2023 due to measures to address insecurity issues in the oil sector. In South Africa, by contrast, after a COVID-19 reopening rebound in 2022, the IMF projected growth more than halves in 2023, to 1.2 percent, reflecting weaker external demand, power shortages, and structural constraints. Global growth to fall to 2.9% Meanwhile, global growth, estimated at 3.4% in 2022, is projected to fall to 2.9% in 2023 before rising to 3.1% in 2024. Compared with the October forecast, the estimate for 2022 and the forecast for...

  As part of measures to mitigate the impact of the Domestic Debt Exchange Programme on insurance companies, the National Insurance Commission will place a moratorium on the Minimum Capital Requirements (MCRs) and Capital Adequacy Ratio (CAR) on the insurers. This means the MCR and CAR will not be enforced but regulated entities will be required to operate in such a way so as to be able to pay claims and operating expenses. The current minimum capital requirement of life and non-life Insurance companies is ¢50 million, whilst the CAR is 14.2%. In a letter to the insurance firms on draft regulatory forbearances to mitigate the impact of the Domestic Debt Exchange on insurance and reinsurance firms signed by the Commissioner of Insurance, Dr. Justice Ofori, the NIC said there will be a moratorium for two years after which the situation will be reviewed and appropriate decision made. A set of guidelines will be developed and issued to guide the operation of regulated entities during t...

 Automobile company, Suzuki, has unveiled its first locally assembled vehicle in Ghana called Suzuki Swift. The assembling of the Suzuki Swift vehicle by Toyota Tsusho Manufacturing Ghana Company limited began in Ghana in September 2022. The assembling of the vehicle in Ghana was based on a Memorandum of Understanding on Cooperation in developing automotive industry signed between Toyota Tsusho and the Government of Ghana at the Seventh Tokyo International Conference on African Development (TICAD7) held in Yokohama, Japan in August 2019. Speaking at the commissioning of the new Suzuki Swift, Managing Officer of Suzuki Motor Corporation, Koichi Suzuki said Suzuki sales in Africa increased by 60% to 116,000 units and in Ghana increased by 63% to over 1,000 units. He added that, this alliance is a very important part of the company’s strategy in the African market, and will continue to strengthen the alliance to enhance Suzuki’s presence in Africa, especially in Ghana. We would like t...

 The September 2022 edition of the Chief Economists Outlook highlighted the intensifying human impact of the cost of living crisis, with plunging real wages leading to worsening poverty and more widespread social unrest. At the start of 2023, these concerns are still evident, and many households confront a dual challenge of facing relatively high costs for basics such as heating and eating, at the same time as feeling the effects of monetary policy designed to curtail inflation in the longer term. However, survey respondents indicate that the cost of living crisis may be close to its peak as policies begin to take their full effect, and a majority (68 per cent) expect the crisis to be less severe by the end of 2023 However, the continuing impact of the cost of living crisis should not be underestimated. A majority of respondents are of the view that energy and food costs will continue to have an adverse impact on households in both high- and low-income countries throughout 2023. Lo...

  The Top Employers Institute, has adjudged Vodafone Ghana as a Top Employer for Ghana and Africa. The Institute recognized Vodafone Ghana as a Top Employer in Ghana five years ago and in the four subsequent years thereafter as Top Employer in Ghana and Africa. A release issued in Accra yesterday day, “Each year, the Top Employers Institute identifies organisations that put their people first through exceptional HR policies. The Institute's certification programme is based on the results of the HR Best Practices Survey, which covers six HR domains and 20 topics, including People Strategy, Work Environment, Talent Acquisition, Learning, Diversity and Inclusion, and Wellbeing.” The Chief Executive Officer of Top Employers Institute, David Plink said, “Uncertain economic times bring out the best in people and organisations. And we have witnessed this in our Top Employers Certification Programme this year: exceptional performance from the certified Top Employers 2023. These employers h...

  Climate change is one of the most critical macroeconomic and financial policy challenges that IMF members face in coming decades. The recent spikes in the cost of fuel and food—and the resulting risks of social unrest—underline the importance of investing in green energy and boosting resilience to shocks. It will require massive global investments to address the climate challenge and vulnerabilities to shocks. Estimates range from $3 trillion to $6 trillion per year until 2050. The current level at about $630 billion is just a fraction of what’s really needed—and very little goes to developing countries. That’s why we need a major shift to harness public and, especially, private financing. With $210 trillion in financial assets across firms, or roughly twice the gross domestic product of the entire world, the challenge for policymakers and investors is how to direct a big share of these holdings to climate mitigation and adaptation projects. This is the focus of a new IMF Staff C...

 From Brexit and US-China trade tensions to the pandemic and war, successive shocks have combined to keep uncertainty elevated. The shocks that have shaken the global economy in recent years have introduced a new normal for turbulence, driven in some cases by political fragmentation between countries. These episodes have also lifted uncertainty to exceptionally high levels, which in turn hurts economic growth as our research shows. To better track the evolution of these conditions, the IMF has updated its World Uncertainty Index to show more frequent readings that are monthly, instead of quarterly, and incorporate data for 71 economies dating back to 2008. As the Chart of the Week shows, the index fell in December, the most recent reading, but has continued to hit elevated levels in recent times on the back of successive shocks, including most recently Russia’s invasion of Ukraine and the associated cost-of-living crisis. Our approach uses a text analysis of reports by the Economis...

  Small businesses are currently experiencing low sales, cashflow problems, employment freezes and sometimes redundancies. Starting a small business is hard work in any environment, but it's even more challenging in a tough economy. This is due to the high cost of living, high interest rates and even the ability to get financing. However, they are opportunities available, especially by choosing the right type of business and running it in the right way to be able to thrive when economic conditions are tough. It is important to note that some businesses are more likely to succeed in a tough economic situation than others. The following steps will assist you in starting your small business. Understanding the economic environment In order to start a business in a high inflation environment, it is essential to understand the economic climate. This will include researching the current inflation rate, analyzing the trends in the market, and understanding the impact of government policies...

  The Bui Power Authority (BPA) has been advised to expedite its rate of recovering a $614, 373,274.36 debt owed it by the Electricity Company of Ghana (ECG). This is because the money owed the power generator has been indicated to be adversely affecting its ability to operate effectively and deliver on its mandate. The Chairman of the Public Accounts Committee (PAC) of Parliament, Dr James Klutse Avedzi, gave the advice when the Ministry of Energy and its agencies took their turn before the committee to answer queries raised by the Auditor General for the year 2022. The indebtedness will not go out completely at any point in time, it will continue because every day there is production, sale and repayment by the buyer, so what is more important is the rate at which the debt is being recovered,” he stressed. Infractions According to the report, the ECG owed the authority $386 million as at the end of December 31, 2019, which increased to $614, 373,274.36 by the end of 2022. The Chie...

  The Forestry Commission has demobilised an excavator in the Atewa Forest Reserve following reports of alleged illegal mining activities. The Commission in a press release said its officials on January 30, 2023, identified a mining operation outside the Forest Reserve, which has affected a portion of the Forest Reserve. Following reports of alleged illegal mining activities in the Atewa Forest Reserve, in the Eastern Region, today, 30th January, 2023, the Forestry Commission immediately deployed officials to comb the Forest to ascertain the veracity or otherwise of the reports," the release said. "After thoroughly combing the Forest, officials identified a mining operation outside the Forest Reserve, which has affected a portion of the Forest Reserve, measuring approximately zero point six hectares (0.6ha). No person was found at this portion of the Forest Reserve. The Commission, however, found some equipment, including an excavator, in this part of the Forest Reserve. The ...

 An aspiring flagbearer of the New Patriotic Party (NPP), Alan John Kwadwo Kyerematen formally informed, the Asantehene, Otumfuo Osei Tutu II of his intention to contest the flagbearership of the NPP. The immediate past Minister of Trade and Industry was at the Manhyia Palace in Kumasi in the Ashanti Region yesterday to also seek for his blessing as he pursued his ambition to become the presidential candidate of the NPP. The courtesy call on the Asantehene forms part of activities marking Mr Kyerematen homecoming to the Ashanti Region. Kyerematen also received a rousing welcome from his teeming supporters on his arrival in the region. Homecoming Addressing the Asantehene, his chiefs and elders at the Manhyia Palace, Mr Kyerematen said as a son of the land, he deemed it appropriate to come home and to meet all the stakeholders to sell his vision to them and get their support to embark on his journey. He also said the Ashanti Region was the heartbeat of the NPP and Manhyia Palace was...

  The Minister of Lands and Natural Resources, Samuel Abu Jinapor, has asked managers of the Minerals Development Fund (MDF) to judiciously utilise resources accruing to the fund for the benefit of mining communities. He said the mandate of MDF was crucial and consequential to the government's quest to make mining beneficial to citizens. Failure to live up to your mandate of providing for the welfare of residents of mining communities have dire consequences as it can lead to upheavals, as evidenced from other mining countries in Africa," the minister added. The MDF was set up to provide development projects in mining communities that have been negatively impacted by mining activities. It derives its funds from 20 per cent of mineral royalty received from the Ghana Revenue Authority (GRA), holders of mining leases, money approved by Parliament for the fund, grants, donations, gifts, as well as money that accrues to the fund from investments made by the MDF Board. Visit Jinapor,...

  The South African government has urged mobile operator MTN Group and the Ghana Revenue Authority to work closely to resolve a GH¢8,209,603,842.14 (US$773 million) tax dispute. South Africa's Minister of International Relations and Cooperation, Dr Naledi Pandor last Friday encouraged MTN to work closely with the authorities in Ghana to devise a solution. A media statement issued by the Department of International Relations and Cooperation, said the South African Government is committed to promoting increased investment in Ghana. The Minister calls on the parties involved to do everything possible to find an amicable solution to these reported challenges," the statement said. "Our common destiny as outlined in the Agenda 2063 aspirations, depends on a win-win intra-African collaboration and cooperation". South Africa is one of the largest foreign direct investors in Ghana, mainly in mining, communication, beverages, retail and franchising. Dispute Scancom PLC, owners...

 In 1992, you began your political career when your late uncle Joe Kanchi signed a membership card of the National Democratic Congress (NDC) for you under the ebony tree in Mirigu-Gonum. You have since participated in all political activities representing the NDC at all levels. It all began in the Kassalingo Community in Mirigu of the Upper East Region of Ghana. You started as a party agent, PRO and slightly missed the position of Chairmanship at the Constituency level in 2014. We knew you would have been a good Chairman but maybe God had just asked you to wait for the ultimate time which is now. Since that election, you have become a household name in the Constituency and the Region particularly among the NDC family. You have turned down proposals by constituents for you to put yourself up for the parliamentary primaries for obvious reasons. You have earned many accolades to your name; unifier, humble, affable, peaceful, friendly, team leader, people centered, passionate, compassi...

  Techgh24 can confirm that there is a new buyer for AirtelTigo.  Impeccable sources have revealed that last week the Minister of Communications and Digitalization, Ursula Owusu-Ekuful personally informed workers of the company that “the deal is done” and latest by February they will know the name of the new buyer. Meanwhile, the various agencies and partners of AirtelTigo have also been informed about the coming of the new buyer and the forthcoming rebranding of the company. It is not clear if the brand colours will be changed or maintained, but the source says the name AirtelTigo will be completely done away with. Meanwhile, workers are very much upbeat about the coming of the new buyer because, as the source put it, “workers have been sitting on the tenterhooks since government acquired AirtelTigo, not knowing what their fate was. But now it is clear that things will be a bit better.” Government took over AirtelTigo in 2021 for only US$1, when the two telcos which merged to...

  There is simmering tension in the Private Health Insurance industry following the incorporation and subsequent operations by the Ghana Association of Bankers (GAB) Health Insurance Scheme. Some players in the sector have expressed their disquiet over what they say is the unfair trade activities by GAB which could potentially affect the structure and future of Private Health Insurance (PHI) in Ghana. According to some of the affected schemes, GAB as a prerequisite to obtaining a license had agreed even if verbally, not to go after banks already doing business with existing schemes, something they say GAB has flouted. A member of the Private Health Insurance Oversight Committee of the National Health Insurance Authority (NHIA) and a spokesperson of the Private Health Insurance Association, Ronald Oppong Adom, in an interview says while the Association is open to business participation from all quarters, schemes that purport to operate in the name of unions could spell doom for the ...

  Following a significant progress with the Domestic Debt Exchange (DDE) programme, government Treasury bills (T-bills) sale was oversubscribed by a significant 60.6% as investor confidence rebound. According to the auction results published by the Bank of Ghana, government secured ¢2.053 billion from the short term securities. Chunk of the funds, however, came from the 91-day T-bill, as the investors largely banks purchased ¢1.426 billion. However, government accepted ¢1.57 billion of the bids tendered. The yield shot up slightly to 35.71%, from 35.63% the previous week. For the 182-day T-bill, government accepted all the bids worth ¢491.45 million at an interest rate of 35.75%. It also obtained ¢135.30 million from the sale of the 364-day T-bill at a price of 35.81%. A carefully analysis shows that the yield remained virtually unchanged at 35%. The sale of the short term securities have been mixed in the past few weeks. However, the significant progress by the government on the D...

  Ghana bagged $696.815 million from oil lifting, corporate tax and other income in the second-half of 2022, the Ghana Petroleum Funds report has disclosed. About $492.186 million was secured from oil lifting between July 2022 and December 2022. In all, five liftings took place with the Sixty-sixth Jubilee recording the highest amount of $119.83 million. Also, $202.55 million was received by the State as corporate tax between July 2022 and December 2022. The corporate tax were paid by Tullow Oil, Kosmos and PetroSA. Interest income accrued from the Petroleum Holding Fund was, however, estimated at $2.07 million. According to the data, $191.48 million was allocated as investments. So far, $1.06 billion has been accrued as petroleum investments as of December 31, 2022. They comprise of the Ghana Stabilisation Fund and the Ghana Heritage Fund. For the GSF, the estimated amount is $143.6 million. $363.76 million has so far been withdrawn since Ghana began producing oil in 2011. The Gha...

 Total Mobile Money transactions in 2022 hit a record ¢1.07 trillion despite the existence of the Electronic Transaction Levy (E-Levy), the January 2022 Summary of Economic and Financial Data by the Bank of Ghana has revealed. This is compared with about ¢902.5 billion recorded in 2022 According to the data, the biggest transactions occurred in December 2022 and November 2022, whereby ¢122 billion and ¢117 billion respectively were recorded. There were fears that the implementation of the E-Levy in May 2022 was going to affect Mobile Money transactions, but that has not been the case. From the data, Mobile Money transactions have been surging since the implementation of E-levy in May 2022. It went up to ¢77.4 billion in June 2022, from ¢71.4 billion in May 2022, but stood at ¢77.2 billion in July 2022. It reached a significant ¢100.2 billion in October 2022, about ¢11.4 billion increase. A recent survey by the Center for Economics Finance and Inequality Studies revealed that many c...

  The Ghana Federation of Labour (GFL) has recommended a 50% haircut on the salaries and emoluments of Article 71 Office Holders as part of the Domestic Debt Restructuring Programme and to reduce the pressure on the public purse. These include the President and Vice, the Speaker of Parliament, the Chief Justice, and Justices of the Supreme Court, with salaries charged to the Consolidated Fund and enjoying special constitutional privileges. Abraham Koomson, the GFL General Secretary, said this at the Ghana News Agency Industrial News Hub platform at Tema. He stated that Ghana was currently encountering a major financial challenge and Article 71 Office Holders could not sit aloof. Speaking on the government’s debt restructuring, he said the payment of ex-gratia must also undergo an overhaul of about 70% cut and that the ordinary person could not be made to suffer the crisis alone. He reiterated the call for a reduction in the number of presidential staffers, ministers of state, and o...

 President Nana Addo Dankwa Akufo-Addo has called on African nations to collaborate and institute stringent measures to stem the disturbing annual illicit outflows of $88 billion from the continent. He said stern attention was required to arrest the situation immediately because the phenomenon was depriving Africa of significant resources that could be used to support its development agenda. President Akufo-Addo made the call when he addressed the closing ceremony of the three-day African Prosperity Dialogues (APD) at the Peduase Presidential Lodge in the Eastern Region last Saturday. We need to pay serious attention to and arrest illicit financial outflows out of the continent, which are estimated at about $88 billion dollars annually, depriving Africa of significant resources that could be used to support our development agenda.” “We need concrete measures to stop the systemic impoverishment of our continent and theft of its resources,” President Akufo-Addo stressed. The African ...