Inflation for July down to 20.9%

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August 14, 2024
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Inflation for the month of July tumbled to 20.9%, representing a decline of 1.9 percentage points from that of June which was at 22.8%.

According to the Ghana Statistical Service (GSS), food inflation went down to 21.5%, from 24.0% in June 2024, while non-food inflation also fell to 20.5%.

The Government Statistician, Prof. Samuel Kobina Annim, addressing the press, indicated that inflation on imported items also dropped to 15.6% from 17.5%.

He attributed this to the stability of the cedi in July 2024. However, inflation on locally produced items stood at 23.3% for July 2024.

“The question on the exchange rate is always an important one that is why we have provided a trend analysis from June 2023 to July 2024. The dominance of the inflation on imported items can be aligned to the exchange rate stability,” he said.

Per the GSS data, five divisions recorded inflation rates higher than the national average.

They are housing, water, electricity, gas and other fuel products, recording 28.6%; restaurants and accommodation services recording inflation of 28.3%; alcoholic beverages, tobacco, and narcotics 26.8%; food and non-alcoholic beverages 21.5%; and health 21.2%.

For food inflation, four out of 15 sub-class registered inflation above the overall food inflation of 21.5%.

They included vegetables, tubers, plantain, cooking, banana and pulses 41.5%; fruits and nuts (35.1%), and fruit and vegetable juices 26.7%.

The Upper East Region recorded the highest inflation rate at 26.9% while the Ahafo Region recorded the lowest inflation of 15.5%.

At the regional level, all 16 regions witnessed some reduction in their inflation levels.

Upper East Region recorded the highest inflation of 26.9 percent while the North East Region recorded 10.6 percent for July 2024.

Greater Accra and Ashanti Region recorded inflation rates of 22.2% and 18.7% respectively.

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September 5, 2024
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3 minutes Read

Government launches restructuring offer for $13bn of its bonds

Ghana invited holders of roughly $13 billion of its international bonds to swap their holdings for new instruments on Thursday, more than two months after reaching a preliminary restructuring agreement with two bondholder groups.

Bondholders have until Sept. 30 to accept the offer though those who agree to do so before an early deadline on Sept. 20 will be eligible for a 1% consent fee, the government said in its “exchange offer and consent solicitation” published in a regulatory statement on the London Stock Exchange.

The gold and cocoa producer defaulted on most of its $30 billion of international debt in 2022, as the strain of the COVID pandemic, war in Ukraine and higher global interest rates tipped it into crisis.

It is overhauling its debt under the G20 Common Framework, which has seen Zambia and Chad also reach agreements.

Ethiopia is expected to be next, but the setup has been widely criticised for being slow and cumbersome.

A committee of Ghana’s international bondholders said in a statement that it supported the restructuring offer. It said it was important for Ghana to sustain economic reforms to eventually regain access to international financial markets.

A regional group representing holders of over 25% of the bonds said in a statement they too supported the offer, adding that they will “continue to invest and contribute towards creating a more dynamic economy”.

Bondholders will have the chance to swap their holdings for a so-called “disco” bond, offering an interest rate of 5% climbing to 6% after mid-2028, and with maturities across three instruments ranging between 2026-2029.

That option will come with a writedown of principal of 37%.

The second is a par bond option capped at $1.6 billion with three instruments, of which the main one will pay a coupon of 1.5% and mature in 2037 with no haircut apart from a writedown of past due interest. The offer will last for 21 days.

The agreement will see Ghana’s bondholders forego about $4.7 billion of their loans and provide cash flow relief of about $4.4 billion up until 2026 when the country’s current International Monetary Fund programme ends.

Godfred Bokpin, an economist and finance professor at the University of Ghana, said Thursday’s announcement was an important milestone in the country’s restructuring efforts.

“With this, investors now have a fair understanding of their losses and they can move on,” he told Reuters.

The new bonds will be issued on Oct. 9, the government statement said.

Holders of the Ghana 2030 international bond that was partially guaranteed by the World Bank and is also part of the restructuring would receive their guarantee payment the same day or as soon as possible thereafter.

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August 28, 2024
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2 minutes Read

Newmont contributes GHC3.176bn in taxes to Ghana in first half of 2024

Newmont Corporation, the world’s leading gold business and Ghana’s leading gold producer continues to make substantial financial contributions to the economy through its tax payments. In the first half of 2024 alone, Newmont’s operations in Ghana, which include the Ahafo and Akyem mines, paid over GHS 3.176 billion in taxes, royalties, levies, carried interest and property rates to the Government of Ghana.

These payments were directed to the Ghana Revenue Authority, Forestry Commission, Ministry of Finance, and various District Assemblies where the company operates. This significant contribution underscores Newmont’s commitment to fulfilling its fiscal obligations and supporting the country’s economic development.

A recent release from the company provided breakdown of the different components of the fiscal payments. These included GHS 1.727 billion in corporate tax, GHS 625 million in mineral royalties, and GHS 364 million in carried interest payments. The others were pay as you earn (PAYE) tax contributions which stood at GHS 253 million, withholding tax payments totaling GHS 180 million, GHS 22 million of forestry levy payment for the Akyem mine operations and property rates of GHS 5 million paid to the district assemblies in Asutifi North and the Birim North.

Through the transparent and responsible payment of taxes, Newmont emphasizes its dedication to regulatory compliance and good corporate governance. The organization attributes these achievements to the hard work and commitment of its employees as well as to the systems in place to ensure operational excellence.

Newmont’s contributions extend beyond tax payments. The company invests in various social and community development initiatives aimed at enhancing the well-being of host communities and promoting sustainable development. Through the development foundations in both Ahafo and Akyem, Newmont is transforming communities by creating shared value in education, healthcare, social infrastructure, and environmental conservation.

Newmont’s consistent and substantial fiscal payments highlight the crucial role of the mining sector in Ghana’s economy. In the whole of 2023, Newmont’s operations in Ghana contributed a total of GHS 3.965 billion in fiscal payments. This remarkable growth reflects the substantial economic impact of Newmont’s safe and responsible mining operations on both local communities and the broader Ghanaian economy.

As a key player in the mining industry, Newmont continues to set a benchmark for corporate governance, environmental stewardship, and community engagement. The company’s ongoing commitment to responsible mining practices and its significant financial contributions underscore its role as a responsible corporate citizen in Ghana.

Source: Newmont Communications