Mobile money increases to GHS1.91 trillion in 2023

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June 3, 2024
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The Bank of Ghana (BoG) has reported that the total value of transactions of Mobile Money (MoMo) in the country increased by 82 per cent, to GHC1.91 trillion in 2023, compared to the GHC1.07trillion in 2022.

The total volume of mobile money transactions increased also to 6.80 billion in 2023, representing a 35.0 percent growth on the volume recorded in 2022.

According to the BoG, the growth in both volume and value was mainly driven by increased number of active mobile money users, which stood at 65.6m in 2023, while active agents grew by 21 percent to 608,856.

It observed that the top five transactions performed by users, according to value, were cash-in, cash-out, bank-to-wallet, wallet-to-bank and person-to-person transactions.

In a related development, a total of 15.23 million loans (24 per cent increase) were disbursed at a value of GHC7.59 billion (37 per cent growth), respectively by Dedicated Electronic Money Issuers (DEMIs).

On a monthly basis, an average of 1.27 million loans valued at GHC632 million were disbursed, the Bank reported.

The digital financial ecosystem saw a total of 181 licence applications, and product authorisation requests by the Bank of Ghana in 2023, out of which seven licence applications and 26 product authorisations were approved.

The credit products and services were underwritten by licensed banks and Specialised Deposit-Taking Institutions (SDIs) to their customers, in line with Section 30 (1)(h) of the Payment Systems and Services Act, 2019 (Act 987).

According to the Central Bank, performance of the SDIs and Other Licensed Institutions improved in 2023, despite the challenging macroeconomic environment, with deposits as the major source of funding for the sub-sector.

It was also observed that the combined assets of SDIs and Other Licensed Institutions stood at GHC22.63 billion at end-December 2023, compared with GHC18.64 billion at end-December 2022.

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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