Ghana’s GDP grew by 2.9% in 2023 – Finance Minister

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May 24, 2024
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The Minister of Finance, Dr. Mohammed Amin Adam, has disclosed that Ghana’s Gross Domestic Product (GDP) grew by 2.9 percent in 2023.

This surpassed the World Bank’s projected 1.5% and the revised projection of 2.3% for the year under review.

Speaking at the Ministry of Finance’s monthly briefing , Dr. Amin Adam said the growth is expected to average 5% in the medium-term.

“Growth turned out to be more resilient and robust in 2023 than initially programmed as GDP grew by 2.9% compared to the original projection of 1.5% and the revised projection of 2.3%. We expect growth to continue its upward trajectory to average 5% in the medium term as we implement our growth strategy under the Post COVID-19 Program for Economic Growth (PC-PEG), supported by the revival of Ghana’s industrialization drive, modernization of agriculture with a focus on value-addition to create economic and employment opportunities, and SME growth and financing.”

He also disclosed that the country’s international reserves are improving with $6.2 billion.

“Gross International Reserves (GIR) is improving and now stands at $6.2 billion covering 2.7 months of import cover at the end of February 2024 compared to $5.9 billion in the corresponding period of 2022.

“GIR is expected to improve to cover at least 4.4 months of import cover in the medium-term to be supported by external inflows from the IMF and World Bank, the government’s Gold-for-Oil Programme, the BoG’s Gold for Reserves programme, as well as the Cocoa Syndicated Funds.”

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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.”

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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