Thursday 25 May 2017
(Bloomberg 05/24/17)
Ghana is seeking better terms for its debt-support program with the International Monetary Fund as the parties discuss an extension of the agreement beyond an April 2018 deadline, according to a person familiar with the matter. The government will agree to extend the deal in return for a bigger credit facility, said the person, who asked not to be named because the information isn’t public. West Africa’s second-biggest economy will take longer than planned to meet the objective of the program, the Washington-based lender said May 19. Finance Minister Ken Ofori-Atta didn’t answer calls seeking comment. A spokesman for the IMF didn’t immediately respond to requests for comment by phone and email.
(Reuters (Eng) 05/24/17)
Danone and its Dubai-based private equity partner Abraj will together invest $25 million to expand production capacity at the Fan Milk dairy business in Ghana, the French food group said on Tuesday. Attracted by the spending power of a growing middle class, Africa has in recent years become a major area of expansion for Danone and other global consumer product companies such as Unilever, Nestle, Pernod Ricard and Diageo. Paris-based Danone has spent over 1 billion euros ($1.12 billion) since 2013 to expand in Africa through acquisitions in countries including Kenya, Morocco and Ivory Coast. Africa accounts for over 5 percent of Danone's revenue. Sales from West Africa are growing near an annual 20 percent and the target is to...
(Reuters (Eng) 05/24/17)
Ghana's government will ask the International Monetary Fund to extend its support programme to December 2018 from April 2018 to boost efforts to stabilize the economy, senior government sources said on Monday. An extension would reassure markets and also likely bring in additional IMF funds to a programme under which Ghana was initially set to receive $918 million over three years, the sources told Reuters. The deal was agreed by the previous government to restore stability to an economy that...
(Bloomberg 05/23/17)
Ghana’s new central bank governor cut the benchmark interest rate to the lowest level in almost two years to help spur economic growth as inflation pressures ease. The Bank of Ghana reduced its key rate to 22.5 percent from 23.5 percent, Governor Ernest Addison told reporters in Accra, the capital, after chairing his first meeting of the Monetary Policy Committee since replacing Abdul Nashiru Issahaku early last month. That’s the lowest rate since July 2015. Five out of eight economists...
(APA 05/23/17)
The Bank of Ghana (BoG) has reduced the policy rate from 23.5 to 22.5, APA learns here. This represents' 100 basic points cut and forms part of government's intention to reduce the rate of lending to propel growth and expansion in the private sector through increased access to credit facilities. The Governor of the Bank, Dr. Ernest Addison, who announced the rate in Accra on Monday, said the decision to reduce the policy rate was due to relatively downward trend...
(APA 05/23/17)
Ghanaian Minister of Trade and Industry, Alan John Kwadwo Kyerematen, has disclosed that 150 foreign and local investors have submitted applications to the government, expressing interest in supporting its drive to build one factory for every district. Speaking in Accra on Monday, he said that the applications were accompanied by business development plans that could facilitate the implementation of the "one district, one factory" promise by New Patriotic Party (NPP) administration. At a forum organised by the government to solicit...
(Reuters (Eng) 05/22/17)
Countries in sub-Saharan Africa need to get their budgets in order, diversify their economies and look after their poorest people. If they do that, there is no reason why the region cannot have the strong growth needed to meet the aspirations of a young and growing population. That, at least, is the three-pillared prescription from the International Monetary Fund as expressed by one of its top Africa researchers, Celine Allard, in an official IMF blog post and podcast. Allard co-authored...
(Bloomberg 05/19/17)
Ghana’s new central bank governor, Ernest Addison, is likely to cut interest rates to an almost two-year low in his debut decision. The former African Development Bank economist, in office since the end of March, has room to act on Monday after the inflation rate fell from a record and the currency stabilized. That would extend an easing cycle started by former Governor Abdul Nashiru Issahaku, who cut borrowing costs at two of the six monetary policy committee meetings that...
(Ghana Business News 05/19/17)
Ghana has been described as an important development partner of China on the African continent. “Since the establishment of diplomatic relations between Ghana and China 57 years ago, the two countries have enjoyed fruitful cooperation in the economic and trade fields, bringing tangible benefits to people of the two countries.” Sun Baohung, Chinese Ambassador to Ghana, said this at the opening ceremony of the China Trade week in Accra on Wednesday. She said last year, trade between Ghana and China...
(Graphic Online 05/19/17)
History of gold mining in large quantities in Ghana began in the 15th Century when Portuguese traders encountered gold in the country’s soil along the coast. The country derives its name, Gold Coast, from the abundance of gold in the land. Until 1981, known gold deposits in the country were limited to the southern belt. In 1981, the discovery of gold in the country from the coastal parts right to the northern sectors dramatically changed the landscape of Ghana’s gold...
(Reuters (Eng) 05/19/17)
When rich countries wrote off billions of dollars of African debt in 2005, they hoped governments would think twice about borrowing again in costly foreign currencies. Over a decade later, most sub-Saharan African countries still rely on U.S. dollar-denominated debt to finance their economies. Some investors say this is sowing the seeds of future debt crises if local currencies devalue and make dollar debt repayments more expensive. Aside from South Africa and Nigeria, governments have not yet done enough to...
(Bloomberg 05/18/17)
Steinhoff International Holdings NV plans to list its African assets separately as the acquisitive retailer seeks a new prize for shareholders following this year’s failed merger talks with Shoprite Holdings Ltd. The company said Wednesday it will seek to list businesses including clothing retailer Pepkor and furniture chain JD Group Ltd. on the Johannesburg Stock Exchange, about 18 months after moving its primary listing to Frankfurt from the South African commercial hub. The new business could be worth as much...
(Xinhuanet 05/17/17)
The Government of Ghana will implement a number of measures aimed at increasing domestic resources to finance national developmental efforts, Deputy Minister for Finance Kwaku Kwarteng announced here on Tuesday. Inaugurating the nine-member board of the Ghana Revenue Authority (GRA), the Deputy Minister explained that the introduction of these measures was necessary to increase domestic resources in the country’s resource mix. This is to help minimize the effect of lost external support occasioned by the country’s new status as a...
(Ghana Web 05/17/17)
The Governor of the Bank of Ghana, Dr. Ernest Addison has stated that the issuance of the 2.25 billion dollars bond by government was necessary to restructure Ghana’s debt. Government in April this year issued four bonds totaling 2.25 billion dollars. The Minority in Parliament has petitioned the United States Securities and Exchange Commission after alleging that the issue was done in secrecy. The Bank of Ghana has already defended the bond ruling out any wrongdoing. Speaking at the National...
(Xinhuanet 05/17/17)
Ghanaian energy think tank, Institute for Energy Security (IES) says the prices of petroleum products will drop further this month in the West African country. Petroleum hedgingA statement released here Tuesday signed by Richmond Rockson, Principal Research Analyst at the Petroleum Unit said its prediction was premised on the international crude oil price fall, the stability of the local currency against the United States Dollar (USD). “With crude oil price falling by over 5 percent, gasoline and gasoil prices dropping...
(Xinhuanet 05/17/17)
Ghana’s Forestry Commission said Tuesday that wood fuel remained a very important energy source for households, with its annual consumption estimated at 16 million cubic meters. “It is on record that about 70 percent of Ghanaians depend on wood fuel for their household energy needs and as a major source of livelihood, and its use is dominant in rural households in Ghana”, the commission said in a release issued ahead of the International Day of Forests scheduled for May 24-25...
(Bloomberg 05/16/17)
When the impoverished West African nation of Niger imposed a ban on donkey exports last year, a small community of traders just over the border in Nigeria was devastated. “Before the ban, you could see thousands of donkeys here,” said Mohammed Sani, a 45-year-old trader in the Nigerian town of Jibiya, as he wiped the sweat off his brow. “Now look at them: there’s no more than 50, crippling the business.” Donkeys are being slaughtered at an alarming pace to...
(Reuters (Eng) 05/12/17)
Fitch ratings agency upgraded Ghana's outlook to stable on Friday and said the government was making progress in stabilizing the economy after a period of crisis. The agency kept its 'B' rating on the gold, oil and cocoa producer, but said it expected a revival of GDP growth and a decline in inflation and the budget deficit. Ghana was seen as having one of Africa's most dynamic economies until it was hit by fall in oil prices and a fiscal...
(Ghana Business News 05/12/17)
Madam Cecilia Dapaah, Minister for Aviation said the Ministry would make the Ho Airport an aviation training and maintenance hub, when completed. She said the nation’s aviation industry was losing pilots and crew to other airlines and that the Ho Airport would be positioned to train people for the industry. Madam Dapaah who inspected construction work at the $25 million dollar airport on Friday said the facility would provide flights to and from other parts of the country, and would...
(Spy Ghana 05/12/17)
Former first lady and 2016 Presidential Candidate of the National Democratic Party (NDP) said the country’s economy was destroyed by the previous National Democratic Congress (NDC) government through bad policies. Nana KonaduSpeaking on Joy fm’s personality profile Thursday night, the former first lady said the evidence of poverty and filth was visible across the country. She said, “I went round the country and I saw poverty staring at me…the likes of poverty that I hadn’t seen since 1982(3) and it...

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