Author: Admin
Gold reserves held at the Bank of Ghana as at end-October 2024 stood at 28.1 tonnes, a surge from the 9 tonnes held a year prior, indicating a year-on-year increase of 19 tonnes in gold reserves. Ghana’s 28.1 tonnes gold reserves per data made available by the constitute 41.2% of its international reserves. Ghana, per its gold reserves, is ranked as the fifth African country with the most gold holdings – following behind South Africa (125.4 tonnes), Egypt (126.8 tonnes), Libya (146.7 tonnes), and Algeria 173.6 tonnes). Algeria has the highest gold reserves on the continent. Globally, Ghana is the…
The Independent Power Generators, Ghana (IPGG), has told the president-elect John Dramani Mahama that over the years, Ghana’s energy sector has grappled with numerous challenges. The challenges include financial sustainability, liquidity crises, and gaps in leadership and policy direction. In the view of the power generators, Mr Mahama’s re-election represents a renewed opportunity to confront these challenges with purpose and resolve. “As Independent Power Generators, we are especially hopeful that your leadership will bring about the restoration of stability, transparency, and innovation that the sector has long missed,” they said in a statement. According to IPGG, Mr Mahama’s victory in…
President-elect John Dramani Mahama has raised alarm over the deteriorating state of the Electricity Company of Ghana (ECG), citing unsustainable technical and commercial losses exceeding 32%. Describing ECG’s current governance as deeply flawed, Mahama expressed concern over the impact of these losses on the nation’s energy sector. “ECG’s governance is in a very bad way, and they are making commercial and technical losses of more than 32%,” he stated. Mahama warned that if the challenges facing the ECG are not addressed promptly, they could undermine key economic recovery initiatives, including the debt exchange programme and the ongoing International Monetary Fund…
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…