Category Business News

• goldcoastnewsline@gmail.com
• December 3, 2024
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• 2 minutes Read

IMF approves $360m for Ghana after third review

The Executive Board of the International Monetary Fund (IMF) has approved the disbursement of $360 million to Ghana under its $3 billion Extended Credit Facility (ECF).

This follows the successful completion of Ghana’s third review under the program, as announced on Monday, December 2, 2024.

The latest disbursement brings Ghana’s total receipts from the ECF to $1.92 billion. The funds are expected to be credited to the Bank of Ghana by the end of the week.

“Ghana’s performance under the program has been generally satisfactory, and reform efforts are paying off. Good progress has been made on debt restructuring. Growth is recovering rapidly, inflation has declined—although at a slower pace, and the fiscal and external positions have continued to improve”, the IMF said in a release.

The statement added that the “Ghanaian authorities have continued to make remarkable headways on their public debt restructuring. After successfully restructuring domestic debt last year and reaching an agreement on a Memorandum of Understanding with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework in June 2024, the government has completed the exchange of its Eurobonds at conditions consistent with program parameters.

“The authorities have also intensified engagement with their remaining external commercial creditors on a restructuring in line with program parameters and comparability of treatment.

“The Bank of Ghana (BoG) has maintained a prudent monetary policy stance to sustain a continued reduction in inflation against heightened risks and has taken important steps to rebuild international reserves.

“The BoG has also appropriately strengthened measures to buttress financial sector stability by intensifying actions to promote timely recapitalization and steps to sustain the viability of banks. The government has started recapitalizing state-owned banks consistent with available resources.”

• goldcoastnewsline@gmail.com
• November 27, 2024
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• 3 minutes Read

DBG, AGI collaborate to revitalise Ghana’s textiles and garments industry

Development Bank Ghana (DBG) has signed a Memorandum of Understanding (MoU) with the Association of Ghana Industries (AGI) as part of its mandate to accelerate the growth of key sectors of Ghana’s economy.

The collaboration aims to strengthen the textiles and garments industry by supporting local businesses to scale production, improve competitiveness, and create jobs.

Per the agreement, DBG will partner with AGI to implement a three-year initiative that provides technical support, financial resources, and market development assistance to selected textile, garment, and fintech companies.

The initiative will help address key industry challenges, such as high production costs, limited skilled labour, and access to long-term financing.

Speaking at the signing ceremony, the Chief Executive Officer of DBG, Kwamina Bentsi Enchill Duker, said the commitment of his outfit towards the textiles and garments industry aligns with our strategic focus on manufacturing as a priority sector for development.

“This collaboration with AGI provides an opportunity to support the sector’s growth, leveraging global trade opportunities such as AfCFTA and AGOA. Our combined efforts will help local businesses overcome barriers, increase production capacity, and tap into new markets, ultimately strengthening Ghana’s economy,” he added.

He announced that DBG will invest an initial GHC566,200.00 in dedicated financial support to AGI to execute a range of activities during the program.

These activities include identifying at least three investable projects within the textile and apparel value chain, technical assistance, market development, capacity-building sessions, and regular monitoring and evaluation to assess the intervention’s impact.

Mr Kwamina Duker further announced that DBG, in collaboration with Partner Financial Institutions (PFIs) and Development Partners (DPs) aims to invest at least GHC100 million annually through long-term financing over the next three years in Ghana’s textile and garments industry.

Additionally, through its Guarantee subsidiary, DBG Guarantee (DBGG), DBG seeks to catalyse and unlock significant financing for the sector by providing partial credit guarantees, enabling businesses to invest in growth and expand their operations.

In his address, Dr. Humphrey Kwesi Ayim Darke, President of AGI, intimated that by facilitating access to funding and critical technical resources, DBG is addressing the unique challenges faced by local textile and garment companies.

“This partnership will empower businesses to improve their operational efficiency, create jobs, and gain access to both local and international markets,” he said.

Also speaking at the event, Prof. Eric Osei-Assibey, Chief Economist Designate at DBG, said the textile and garment sector has immense potential to contribute significantly to Ghana’s economic growth.

“Through this partnership with AGI, DBG is committed to bridging the financial and technical gaps that have hindered the sector’s growth,” he said.

He further pointed out that the industry has opportunities to transition towards sustainable manufacturing and circularity, particularly in recycling textile waste and adopting eco-friendly production practices.

“Therefore, emphasis will be placed on integrating sustainable practices, ensuring that the sector grows responsibly and contributes to environmental preservation,” Prof.Osei-Assibey said.

The programme is expected to enhance beneficiary companies’ competitiveness and operational efficiency, drive job creation and economic empowerment within the textile and garment sector and expand market linkages, boosting Ghana’s export potential.

The partnership between DBG and AGI is a vital step towards revitalising the textiles and garments industry, paving the way for long-term economic growth and sustainability.

Source: myjoyonline.com

• goldcoastnewsline@gmail.com
• November 27, 2024
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• 2 minutes Read

Herbert Krapa: 50% of Ghanaians to adopt LPG for cooking by 2030

The Ministry of Energy has assured the public that all challenges delaying the full implementation of the Cylinder Recirculation Model (CRM) are being addressed with input from key stakeholders.

According to the sector minister, Herbert Krapa, the CRM is set to be effectively rolled out in 2025.

The CRM is a distribution system where consumers exchange their empty LPG cylinders for filled ones at designated vending points.

The empty cylinders are then transported to bottling plants, refilled, and made available for other consumers.

Interacting woth the media on the sidelines of the 2024 Women in Energy Outreach Programme, Mr. Krapa expressed optimism that by 2030, 50 percent of Ghanaians would have access to and use LPG as a primary energy source.

“The recirculation model is going well. We have had some initial concerns from stakeholders. We have broadened and deepened the stakeholder consultation. We expect that, starting next year, we will see a more aggressive rollout of the model.

“In 2030, we should have 50 percent of the Ghanaian people using cylinders as a source of cooking rather than firewood. And it is an ambitious programme, but we believe that we have the capacity to roll it out, and we call on all stakeholders to give us the needed support,” he said.

Source: citinewsroom.com

• goldcoastnewsline@gmail.com
• November 14, 2024
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• 2 minutes Read

Ghana unveils ambitious climate finance plans at COP29

The Director of Climate Financing Division at the Ministry of Finance, Phyllis Adwoa Fraikue, has outlined the country’s bold initiatives to mobilize climate finance amid global economic challenges during a “Finance Day” side event at the ongoing COP29 in Baku, Azerbaijan.

The event, themed “Collaborative Pathways to Green Growth: Revolutionizing Climate Finance in a World of Fiscal Challenges,” highlighted the urgent need for climate-resilient development, particularly in the wake of the COVID-19 pandemic.

In her address, Mrs. Fraikue underscored Ghana’s commitment to addressing climate risks while maintaining fiscal responsibility.

She spotlighted the newly established Climate Financing Division, which is pivotal to the country’s Climate Prosperity Plan. This initiative, she explained, aligned with Ghana’s national development goals with global climate objectives, while attracting both public and private investment for sustainable, green growth.

“Our aim is to unlock private capital for low-carbon development and to minimize the national debt burden,” Mrs. Fraikue noted, emphasizing the importance of clear sector-based incentives to achieve these goals.

Recognizing Ghana’s ongoing fiscal challenges, exacerbated by global economic disruptions since 2022, she highlighted the importance of innovative financial mechanisms such as debt-for-climate and debt-for-nature swaps.

The occasion was used to showcase the Finance Ministry’s new Ghana Green Finance Taxonomy, a framework designed to direct funding to environmentally responsible projects, making Ghana a regional leader in sustainable finance.

Through these tools and sector-based incentives, Ghana aims to unlock private capital for low-carbon development, minimizing the national debt burden.

Mrs. Fraikue concluded with a call for robust partnerships, stronger transparency, and accountability in climate finance to safeguard both natural and physical assets.

“Let us seize this moment to foster collaboration, leverage innovation, and build a sustainable future for all,” she urged.

She said, the Ministry of Finance has been actively engaging stakeholders for stronger financial and technical partnerships in line with the Nationally Determined Contributions.

This event showcased Ghana’s commitment to mobilizing climate finance resources, as well as its collaborative approach to strengthening resilience and advancing sustainable development.

The COP29 Finance Day event is expected to catalyze further discussions on innovative financial solutions and the future of climate finance amid global fiscal constraints.

• goldcoastnewsline@gmail.com
• November 13, 2024
• 0 Comments
• 4 minutes Read

G2billion grants for YouStart beneficiaries

The second phase of the YouStart Ghana Jobs and Skills Project has officially commenced, with a grand grant signing ceremony held yesterday at the Accra International Conference Centre.

Delivering the keynote address, Mrs Kosi Yankey-Ayeh, Chief Executive Officer of the Ghana Enterprises Agency (GEA), said the project aimed to significantly boost youth entrepreneurship and job creation in the country.

She mentioned that over 4,000 young entrepreneurs from across the nation had been awarded grants. She stressed that the event signified a critical advancement in the government’s strategic response to youth unemployment and its commitment to nurturing entrepreneurship as a linchpin for economic development.

According to her, this phase of the YouStart initiative will provide crucial financial support and tailored mentorship, creating an ecosystem conducive to the growth and sustainability of youth-led businesses.

Mrs. Yankey-Ayeh underscored the project’s transformative potential. “It is with great pleasure and a deep sense of responsibility that I stand before you today to mark a significant milestone in our collective effort to empower the youth of Ghana and nurture their entrepreneurial aspirations,” Mrs. Yankey-Ayeh remarked.

“Today’s ceremony goes beyond the formal signing of grant agreements; it represents a powerful commitment to the future of our country, built upon the dreams and determination of our young entrepreneurs,” she added.

She explained that the initiative, which would disburse GHC 51,866,369.31 in grants to 4,174 beneficiaries, encompassed a holistic support system for aspiring entrepreneurs.

She added that the funds would help launch and scale businesses, while comprehensive mentorship in business management, financial literacy, digital marketing, and market expansion would empower recipients to drive meaningful economic impact.

In the Greater Accra Region, 691 young entrepreneurs will receive grants totaling GHC 8,695,802.08. The Central Region will see 522 beneficiaries supported with GHC 6,409,205.18, while 550 recipients in the Eastern Region will share GHC 6,782,639.14. The North East Region has 112 grant recipients, with a total allocation of GHC 1,307,603.00, and in the Ashanti Region, 616 beneficiaries will receive GHC 7,580,795.52.

The Upper East Region will see 196 young entrepreneurs benefiting from GHC 2,337,600.28, and the Savanna Region has 90 recipients who will receive GHC 1,082,532.00. In the Northern Region, 364 beneficiaries will share GHC 4,327,532.00, while the Western Region’s 180 recipients will be granted GHC 2,379,872.00. The Ahafo Region has 61 beneficiaries, receiving GHC 773,257.00.

In the Upper West Region, 118 recipients will receive GHC 1,357,058.00, and the Oti Region will support 69 beneficiaries with GHC 867,186.00. The Volta Region’s 137 young entrepreneurs will receive GHC 1,853,271.11, while the Bono Region’s 179 beneficiaries will share GHC 2,266,819.00. In the Western North Region, 137 recipients will be awarded GHC 1,800,208.00, and finally, the Bono East Region will provide grants totaling GHC 2,044,989.00 to 151 beneficiaries.

She noted that these strategic allocation of grants would ensure a broad geographic impact, with young entrepreneurs from all regions set to benefit.

Mrs. Yankey-Ayeh touched on the comprehensive nature of the support provided: “These grants symbolize the Government of Ghana’s unwavering belief in the potential of our youth to drive innovation, create jobs, and contribute to the sustainable development of our nation. The support extends beyond finances to encompass skills training and mentorship, ensuring that beneficiaries are well-equipped to succeed.”

Mrs. Frema Osei-Opare, Chief of Staff, said: “The youth represent our most valuable resource. They bring energy, creativity, and innovation—qualities essential for our economy to flourish in today’s rapidly changing world”.

She noted that by investing in Ghana’s young people, it would  ultimately lead to the future investment of the country.

Mrs. Osei-Opare urged grant recipients to maximize the opportunities presented. “The funds provided are a powerful tool in your hands, and it is up to you to wield them wisely. With these resources, think not only of what you can achieve for yourself but also of how you can create opportunities for others,” she advised.

She emphasized the transformative potential of the initiative. “I am confident that the knowledge and skills gained through this programme, coupled with the financial support provided, will equip you to become the future leaders of our economy. We look forward to seeing your businesses thrive and contribute to the sustainable development of our great nation,” she added.

• goldcoastnewsline@gmail.com
• November 6, 2024
• 0 Comments
• 1 minute Read

Inflation for October 2024 increases marginally to 22.1%

Inflation for October 2024 increased marginally to 22.1% from 21.5% recorded in September 2024.

According to the Ghana Statistical Service (GSS), food and non-food inflation went up by 22.8 and 21.5 percent respectively.

Also, locally produced items went up to 24. 6 percent compared to the 23.4 percent recorded in September. Imported items saw a drop to 16.3 percent compared to the 17.0 percent recorded in October.

Addressing journalists, Government Statistician, Prof. Samuel Annim explained that the 22.1 percent that has been recorded for the month of October 2024 is a 0.6 percentage point increase relative to the year on year inflation that was recorded for September 2024.

“Desegregating overall rate of inflation from your food and non-food perspective, we did record 22.8 percent for food inflation and 21.5 percent for non-food inflation for the month of October 2024”.

He pointed out that food inflation has increased by 0.7 percentage point recording 22.1 percent in September 2024 and increasing to 22.8 percent for October 2024.

“Non food inflation has also increased by 0.6 percentage point, increasing from 20.9 percent for the month of September 2024 to 21.5 percent for the month of October 2024.

myjoyonline.com

• goldcoastnewsline@gmail.com
• November 6, 2024
• 0 Comments
• 2 minutes Read

BOST Initiates Major Depot Upgrades to Improve Operational Efficiency

The Managing Director of Bulk Energy Storage and Transportation Company Limited (BOST) Dr. Edwin Alfred Provencal has revealed that BOST is expected to complete Phase 1 of the Accra Plains and Kumasi depots project.

He emphasized that the upgrades along with broader network improvements, aimed to create a more resilient and responsive oil supply chain in Ghana.

“This upgrade is not just about improving our infrastructure but about setting a new standard for operational excellence across our sector”, he said.

Dr. Provencal made the disclosure at the Minister’s Press Briefing in Accra Today.

He noted that the company’s dedication to enhancing Ghana’s fuel infrastructure will reach a major milestone with these improvements.

Dr. Provencal stressed that the upgrades are a crucial step toward achieving the company’s long-term vision and also boost operational efficiency.

“We believe this will enhance our capacity to meet Ghana’s fuel demands efficiently and sustainably,” he stated.

He stated that the upgrades represent a strategic shift for BOST as it moves from traditional oil storage and transportation toward a broader energy storage model that includes cleaner and more sustainable energy sources, such as solar and Compressed Natural Gas (CNG).

“This shift aligns with BOST’s rebranding from Bulk Oil Storage and Transportation to Bulk Energy Storage and Transportation”, he said.

He reiterated that the completion of Phase 1 is expected to reduce inter-depot loading times from four hours to one hour and 30 minutes, while barge loading times have been cut from seven days to just one.

Dr. Provencal emphasized that these improvements would have a direct impact on service delivery and customer satisfaction, strengthening BOST’s reputation as one of Ghana’s leading state-owned enterprises.

• goldcoastnewsline@gmail.com
• November 6, 2024
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• 2 minutes Read

BOST clears GHC384million debt

The Bulk Energy Storage and Transportation Limited Company (BEST) has repaid 100% of its trade debt and loan obligations, totaling over GHC384 million.

Speaking at the Minister’s Press Briefing organised by the Information Ministry, the Managing Director of BEST, Dr. Edwin Provencal, noted that the oil company had gone through dramatic changes, including the resolution of long-standing tax arrears and audited accounts spanning 2015 through 2023.

In addition to the debt clearance, he disclosed that his outfit had implemented several strategies to boost revenue, including the completion of critical projects like the Tema to Akosombo Petroleum Pipeline (TAPP) and the Bolga to Buipe Pipeline, which now operate with leak detection systems to secure Ghana’s fuel infrastructure.

“Achieving this level of debt repayment while enhancing operational capabilities is a testament to our commitment to financial transparency and growth,” he emphasised.

Dr. Edwin Provencal attributed the financial turnaround to his strong corporate governance and operational discipline.

He stated that the financial achievement highlighted BOST’s strategic management approach that positioned it as a model for Ghanaian state-owned enterprises.

“BOST is on a path to sustainability, not just in finances but in energy solutions for Ghana,” Dr. Provencal noted.

With these initiatives, BOST’s revenue-earning assets have surged from 18% in 2017 to 98% today.

• goldcoastnewsline@gmail.com
• October 15, 2024
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• 3 minutes Read

Fitch, Moody’s spark confidence in Ghana’s credit rating

Global ratings agencies, Fitch and Moody’s have sparked confidence in Ghana’s Long-Term Local-Currency (LTLC), raising the country’s credit ratings from the previous ones.

While Fitch upgraded the country’s Long-Term Local-Currency Issuer Default Rating (IDR) from ‘CCC’ to ‘CCC+’, Moody’s raised the ratings from the previous levels of ‘Caa3’ and ‘Ca to ‘Caa2.’

The upgrade was driven by the country’s extensive debt restructuring, including the recently completed Eurobond exchange, the two ratings agencies said, noting that the process had eased the government’s financial pressures.

Regarding outlook, Fitch noted that it typically did not assign outlooks to IDRs of sovereigns with a rating of ‘CCC+’ or below, while Moody’s shifted the country’s outlook from ‘stable’ to ‘positive.’

“The upgrade of Ghana’s LTLC IDR to ‘CCC+’ reflects our increased confidence that the likelihood of another default on Ghana’s LC debt is being reduced with the completion of the Eurobond restructuring, as this further unlocks access to concessional international finance,” Fitch noted.

“The ‘positive outlook reflects the potential for liquidity risk to ease amid ongoing fiscal consolidation efforts supported by an International Monetary Fund (IMF) programme,’ Moody’s said in a statement last Friday.

Earlier this month, Dr. Mohammed Amin Adam, Ghana’s Finance Minister, indicated that the country would resume the payment of debt owed its Eurobond holders, following the successful completion of its US$13 billion external debt.

It also came on the backdrop of the country reaching an agreement with the Staff Mission of the IMF on the third review of its ongoing Extended Credit Facility (ECF), of which the external debt restructuring forms a major part.

This is to help in Ghana’s recovery from a near US$30bn debt default in 2022, as the restructuring is expected to cut Ghana’s debt by $4.7bn and offer cash flow relief worth $4.4bn during the IMF programme.

“By the 98 per cent we’ve achieved, we’ve all consented to the exchange, but the actual exchange will take place over the next two weeks, and once we exchange, it means that we can start servicing our debts,” he said.

“We’ll not service at the levels we’d have done because of the reduction in the interest rate and principal… with the Official Bilateral Creditors, the servicing of the debt has been postponed until after 2028,” he added.

Ghana’s economy has shown signs of recovery, with growth hitting 6.9 per cent in the second quarter of 2024, the highest in five years, the Ghana Statistical Service (GSS) has noted.

At the end of its two-week long third review of Ghana’s programme, Mr Stephane Roudet, Mission Chief for Ghana stated that the country’s economic growth in the first half of 2024 was much higher than initially envisaged.

Source: GNA

• goldcoastnewsline@gmail.com
• October 14, 2024
• 0 Comments
• 3 minutes Read

COCOBOD announces record producer prices, zero-borrowing milestone in cocoa financing

The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, has highlighted the Board’s groundbreaking achievements in financing cocoa purchases and supporting farmers through record-setting producer prices.

He stressed COCOBOD’s commitment to empowering cocoa farmers, and boosting the capacity of domestic financial institutions as a cheaper alternative to the reliance on external borrowing and its high dollar-denominated interest rates.

“Since 2017, COCOBOD has worked relentlessly to ensure that our farmers receive the maximum benefit from their hard work. One of the most significant milestones has been the shift from 32 years of external borrowing for crop financing. Today, we have achieved zero borrowing, meaning zero cost of borrowing for financing cocoa purchases,” he said.

Taking his turn at the Ministers’ Press Briefing organised by the Information Minister in Accra yesterday, he indicated that the creative strategy had made COCOBOD less dependent on high-interest external loans by using pre-financing from Licensed Buying Companies (LBCs).

This has improved the system’s overall efficiency, noting that  “the new financing model strengthens the capacity of our domestic financial institutions and has eliminated the high-dollar interest rates we used to face.”

“This shift has been a game-changer in reducing financial pressure on the Board and ensuring a more sustainable and cost-effective way of financing,” Mr Boahen Aidoo added.

Increasing producer prices

In addition to financing improvements, the COCOBOD boss disclosed that his outfit’s success was steadily increasing producer prices, offering substantial support to cocoa farmers amongst global price volatility.

“Year-on-year, we have consistently raised the price paid to farmers. In 2024, we made history by increasing the producer price to GHS 48,000 per ton, the highest in Ghana’s history,” he emphasised.

According to Mr Boahen Aidoo, this marks a cumulative increase of 531.58% in producer prices from 2016/17 to the current cocoa season, setting a new benchmark for farmer earnings in the country.

In addition, he noted that this remarkable growth was part of COCOBOD’s broader vision to improve farmer welfare and ensure their long-term financial stability.

“These efforts are not just about short-term gains. We want to ensure that every cocoa farmer in Ghana enjoys long-term security. Our payment of remunerative prices guarantees that they can invest in their farms, improve productivity, and ultimately, enjoy a better quality of life,” he emphasised.

CMS

Mr Boahen Aidoo also highlighted COCOBOD’s introduction of a comprehensive cocoa farmer database and the successful launch of the Cocoa Farmers Pension Scheme, which ensures financial independence for farmers in their later years.

“Through our integrated Cocoa Management System, we have registered over 790,000 farmers, which has paved the way for direct payments and pension contributions, ensuring that no cocoa farmer is left behind,” he said.