Author: Admin
Ghana’s energy sector remains under pressure as the International Monetary Fund (IMF) highlights persistent challenges and calls for urgent reforms under the Energy Sector Recovery Programme (ESRP) to restore fiscal stability. In its latest staff report, the IMF revealed that Ghana’s energy sector deficit for 2024 exceeded expectations, widening by 0.6 percentage points of GDP and further straining public finances. Persistent inefficiencies, particularly the Electricity Company of Ghana’s (ECG) failure to effectively implement the Cash Waterfall Mechanism, have worsened arrears owed to Independent Power Producers (IPPs) and fuel suppliers. Despite these challenges, the IMF expressed optimism about forthcoming reforms. A…
Fitch Ratings expects the outlook for sub-Saharan African sovereigns to be neutral in 2025. This the UK-based firm says will reflect a stronger macroeconomic outlook and modest fiscal consolidation balanced against still-challenging financing conditions and political and insecurity risks. It forecasted Gross Domestic Product (GDP) growth rate to improve driven by reforms. “We forecast growth will improve driven by reforms and recovery from drought. Momentum in Nigeria and South Africa, the two largest SSA economies, will generate positive spillovers”. It continued that a tighter policy should help tame inflation whilst improved growth and fiscal reforms should reduce regional government debt/GDP,…
As the Ghanaian economy prepare to take off new measures from new administration as they await the swearing in of President Elect John Dramani Mahama on January 7, 2025, much is expected to manage inflation downwards. To this, the International Monetary Fund (IMF) has urged the Bank of Ghana (BoG) to maintain a tight monetary policy stance given upside risks to inflation while doing more to advance the Fund’s advice on safeguards. According to the Fund, a tight policy stance, supported by robust liquidity absorption operations, is warranted to ensure that inflationary pressures—stemming from the dry spell and the recent…
Ghana’s cocoa sub-sector has recorded a 26% contraction in the third quarter of 2024, marking its fifth consecutive decline.Tourism packages This sharp downturn contrasts starkly with the broader economy, which posted an impressive 7.2% growth during the same period. Excluding the impact of oil, Ghana’s economy in current terms expanded to GHȼ254 billion, up from GHȼ194 billion in the corresponding quarter of 2023. The challenges facing the cocoa sub-sector began in the third quarter of 2023 and worsened significantly in early 2024. Tourism packages The first quarter of this year saw the sector’s worst contraction at 20.2%. However, hopes for…
Foreign Direct Investment (FDI) plays a vital role in boosting the economic prospects of nations, including Ghana. However, while FDI contributes significantly to growth, it also presents certain challenges, particularly, in the shipping sector, which is crucial for international trade and economic development. The implications of FDI for the shipping sector in Ghana, especially concerning profit repatriation, can have far-reaching consequences on the local economy. The Dynamics of FDI in Ghana’s Shipping Sector FDI has been a key driver in the modernization of Ghana’s shipping and logistics infrastructure, attracting foreign shipping lines and international logistics companies to operate within the…
About $29.2bn in investment interests have been registered in three days for various projects in Africa as the continent turns its needs into bankable and beneficial opportunities for investors. The investment interests were realised from 37 projects in 41 boardroom meetings in three days at the just ended 2024 Africa Investment Forum (AIF) market days in Rabat, Morocco. It covers projects in the areas of transport, power and energy, food and agribusiness, mining, pharmaceuticals, water and sanitation, urban infrastructure, and tourism, across various countries in Africa. At the Forum, some 15 new sponsors and partners, including banks, insurers and export…
Ghana and other countries will benefit from a US$150 million facility aimed at derisking the financial ecosystem as part of the implementation of the African Continental Free Trade Area (AfCFTA). Senegal, Angola, and Botswana are the other countries that are “out of the commercial regions” of the Trade Development Bank (TBD) and can benefit from the risk participation facility. The agreement will also benefit countries in East, North, and Southern Africa. It covers areas such as agriculture and food security, energy security, manufacturing, telecommunication, and services. This is through the instrumentality of the African Development Bank (AfDB) and the Trade…
Statistical officials from Sub-Saharan Africa are advocating for the adoption of the Agricultural Sciences and Technology Indicators (ASTI), a globally recognized program designed to collect, compile, and analyze agricultural research data. The officials emphasized that incorporating ASTI would enable Sub-Saharan countries to formulate effective policies and prioritize investments, ultimately boosting agricultural growth and productivity. This call was made at the conclusion of a workshop aimed at raising awareness about ASTI, sharing lessons from pilot implementations, and equipping participants with the tools and knowledge necessary to harness its potential. The workshop was co-organized by the Food and Agriculture Organization (FAO) and…
The Office of the Registrar of Companies (ORC) has announced that some 500,000 business names and 5,000 companies are at risk of being delisted from its register by the end of December 2024. Mrs. Jemima Mamaa Oware, the Registrar of Companies, revealed that the delisting was due to the failure of those businesses and professional organizations to file their annual returns, despite being granted a year-long extension and receiving constant reminders. Speaking at a media interaction during a stakeholder engagement, Mrs. Oware said that the delisting exercise was part of efforts to ensure compliance and improve the quality of the…
SikaFX, an innovative money transfer platform, is excited to announce its launch in Ghana’s financial sector. The company’s goal is to streamline international remittances, providing Ghanaians both at home and abroad with a secure, quick, and cost-effective method for sending and receiving funds. In today’s interconnected world, SikaFX understands the importance of dependable financial solutions that connect the diaspora with their families back home. The platform boasts competitive exchange rates, low transfer fees, and an easy-to-navigate interface tailored to the varied needs of its users. Key Features of SikaFX: • Fast and Efficient: Transactions are completed quickly, ensuring that recipients…