The total volume exchanged on the secondary bond market for Government of Ghana bonds rebounded by 19.01% week-on-week.

This reflected a market turnover of GH¢205.18 million.

The bond exchanges recorded for the week remained evenly spread across the front and the tail end of the LCY yield curve.

There were about 8% of transactions at the belly of the curve.

Analysts expect the February 2024 end-of-month portfolio adjustment by pension fund managers to augur favourably for bond exchange this week.

Meanwhile, yields fell sharply in February 2024 as the strong money market liquidity outweighed any upside risk from the unexpected uptick in the January 2024 inflation.

READ ALSO:

• T-bills auction: Interest rates fall for 9th consecutive week to 26.9%;…

• Interest rate reduction should be linked to improved economy – John…

Maize sellers in the Sissala area of the Upper West Region are crying for buyers of their produce weeks after harvest, with all known off-takers not in sight, forcing them to sell at lower-than-expected prices.

This came to light when the Ghana News Agency (GNA) interviewed some maize sellers who have been unable to sell their stock whilst those in dire need are being forced to sell at prices below the standardized ones.

Alhaji Maize Adinan Bajin, a maize dealer, said in December 2023, a bag of maize was sold at GH¢370.00, went down to GH¢365.00, later to GH¢320.00 and currently being sold at GH¢300.00.

In the past, after Christmas, a lot of buyers went to the Sissala area to buy maize but the prevailing situation had been different as there were no buyers, leaving the space for only one company to buy at a reduced price.

“We can’t get buyers and as farmers, we need to sell and clear our new fields, buy fertilizer and prepare our new fields, but we are at a standstill and stranded,” Alhaji Bajin said.

“More challenged are the smallholder farmers and women who are having difficulty selling their maize due to the fewer buyers.”

“Looking at the amount of inputs that were used in producing the maize, it’s now difficult to break even, and this could make us indebted to our suppliers.”

 He said he currently has 5,000 mini bags of maize that he had not been able to sell and called on the Government to intervene by regulating the price as they feared reducing their farm sizes next season if there was no support.

A woman maize farmer said: “I had to carry my two Maize bags to the WARC shop, a maize aggregation company, to sell but I was told I would receive my money the following day since the company`s mode of payment was mobile money and that had to be done next day”.

“A few years ago buyers would trace to my house and even buy the maize and pay me cash, this situation is affecting us.”

Mr Nabong Ayie, a farmer, said: “I have tried selling 2000 bags for the past two weeks and nobody is calling to buy, I need money badly to do other things and now I have to wait until a buyer calls”.

Mr John Dimah, a former National Best Maize Farmer, bemoaned the absence of buyers, saying:,”This year we are stranded, I still have some 15,000 mini bags of maize unsold hoping to get a buyer”.

He blamed the situation on the disturbances around the Sahelian region, the good season from the Middle belt of Ghana, the possible influx of foreign maize flooding the market.

He called on farmers to diversify farming to other crops like sorghum, sesame, and soya bean.

The WARC is the only company currently buying maize in the Sissala area where the price of maize has dropped from GH¢370.00 in December last year to Ghc300.00 per 100kg bag currently.

It has employed some 70 women aggregating maize at various communities at a price most farmers felt cheated by due to the lack of competitors.

However, the Company has plans to buy about 600,000 bags of maize.

Mr Samuel Akuetteh, a Municipal Officer in charge of Crops said the Department of Agriculture was aware of the situation and had created market linkages to enable smallholder farmers could sell their produce.

ALSO READ:

• Poultry farmers cry over maize shortage

• No more free pepper soon — Ga kenkey sellers

The Bank of Ghana(BoG) has suspended the Foreign Exchange Trading Licenses of Guaranty Trust Bank Ghana Limited (GTB) and FBN Bank Ghana Limited (FBN), effective 18th March 2024.

The suspension which is to last for one month is in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723).

In a statement, the Central Bank explained the decision was due to various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations.

BoG has noted the license will be restored at the end of the one month once it is satisfied that the banks have put in place effective controls to ensure strict adherence to the foreign exchange market regulations.

Meanwhile, BoG has also cautioned foreign exchange market players to adhere strictly to the applicable forex market regulations and guidelines.

ALSO READ:

• Zeepay Ghana fined, forex license suspended temporarily

• Licensed forex bureaus not complying with foreign exchange law to be closed down

The Transport Operators Union and the Concerned Drivers Association of Ghana have announced a 30 percent increase in transport fares effective March 7, 2024.

In a statement, both organizations cited government’s inability to address their grievances as the driving force behind this decision.

“As representatives of drivers, we have expressed our dissatisfaction with the leadership’s failure to tackle our concerns and enact fare adjustments to mitigate the escalating operational expenses.

The persistent surge in fuel prices has severely affected our means of sustenance, resulting in financial burdens and operational challenges” the statement said.

Below is the full statement.

Regional Chairmen of both the Transport Operators Union and the Concerned Drivers Association of Ghana are announcing our intention to consider a fare increment in response to the recent hike in fuel prices across the country.

As drivers’ associations, we expressed disappointment in the leadership for failing to address the concerns and implement fare adjustments to counterbalance the increased operational costs.

The continuous rise in fuel prices has had a significant impact on our livelihoods, leading to financial strains and hardships in maintaining our operations.

We would like to express our disappointment in our leadership, Despite the escalating costs of fuel, our leadership has not taken proactive measures to increase fares in line with market conditions.

This has prompted us Regional executives to consider fare adjustments as a necessary step to sustain our businesses.

The fare adjustments are essential to ensure the financial viability of the transportation sector and to maintain the quality of service provided to the public. The failure of the government to address this critical issue has left us with no choice but to consider fare increments as a means of coping with the escalating operational costs.

We are calling on the government and relevant authorities to engage in constructive dialogue with our leaders to address the challenges faced by our sector and to implement fare adjustments that reflect the current economic realities.

Failure to address these concerns by 6th March 2024 will leave us with no choice but to increase fares.

READ ALSO:

Tontokrom clash: Asanko Gold intimidating us with machomen – Chief claims…

Two confirmed dead in another accident in Offinso North

Don’t assent to Anti-LGBTQ+ Bill – Finance Ministry tells Akufo-Addo

The Ministry of Finance has revealed that Ghana stands to forfeit approximately US$3.8 billion in World Bank financing over the forthcoming five to six years should President Akufo-Addo approve the Anti-LGBTQ Bill.

The Finance Ministry outlines that in the year 2024 alone, Ghana would witness a loss of US$600 million in budget support and an additional US$250 million designated for the Financial Stability Fund.

Such repercussions are anticipated to detrimentally affect Ghana’s foreign exchange reserves and the stability of the exchange rate.

Below is the full breakdown

Impact on World Bank-funded programmes

i. The expected US$300 million financing from the First Ghana Resilient Recovery Development Policy Operation (Budget Support) which is currently pending Parliamentary approval might not be disbursed by the Bank when it is approved by Parliament.;

ii. On-going negotiations on the Second Ghana Resilient Recovery Development Policy Operation (Budget Support) amounting to US$300 million may be suspended;

iii. On-going negotiations for US$250 million to support the Ghana Financial Stability Fund may be suspended;

iv. Disbursement of undisbursed amounts totaling US$2.1 billion for on-going projects will be suspended; and

v. Preparation of pipeline projects and declaration of effectiveness for two projects totaling worth US$900million may be suspended. Full details of the World Bank portfolio are attached as Appendix 1 & 2.

vi. In total, Ghana is likely to lose US$3.8 billion in World Bank Financing over the next five to six years. For 2024 Ghana will lose US$600 million in Budget support and US$250 million for the Financial Stability Fund. This will negatively impact on Ghana’s foreign exchange reserves and exchange rate stability as these inflows are expected to shore the country’s reserve position.

Impact on the Implementation of the 2024 Budget

The potential loss of these financial resources creates a financing gap in the 2024 budget that must be addressed either through a significant reduction in expenditures or additional domestic revenue mobilisation. Failing this, the Government’s ability to achieve the targets in the 2024 Budget will be undermined and the IMF-ECF Programme will be derailed.

Impact in the IMF Programme

While there is no direct conditionality in the IMF-ECF Programme relating to the passage of the Bill, the principles of the current IMF-ECF Programme are built on predictable financing from Development Partners (Financing Assurances) including the World Bank funded Ghana Resilience Recovery Development Policy Operations.

Hence the non-disbursement of the Budget Support from the World Bank will derail the IMF programme. This will in turn trigger a market reaction which will affect the stability of the exchange rate.

Impact on Debt Restructuring Programme

Negotiations with the Official Creditor Committee (OCC) and Eurobond holders under Ghana’s debt restructuring programme is predicated on the success of the IMF programme. Hence, a derailed IMF programme will have dire consequences on the debt restructuring exercise and Ghana’s long-term debt sustainability.

Impact on African Development Bank Programmes

The African Development Bank has indicated that the passage of the bill will not have any adverse impact on the cooperation with Ghana.

Possible adverse reaction from Germany and the wider European Community

In several discussions, with officials from the German Government, MoF officials have been informed that the German Government is against the passage of the Bill.

Given Germany’s relative strong influence in the European Union and the Official Creditor Committee, there is a need to manage the relationship to forestall a strong negative reaction.

Anti-LGBTQI+ Bill: Akufo-Addo won’t sign – Security Analyst [Listen]

Ghana’s telecom industry is set for a shakeup as the National Communications Authority (NCA) prepares to regulate how often Mobile Network Operators can adjust their tariffs.

This move comes specifically in response to the dominance of MTN Ghana as a Significant Market Power (SMP) in 2020.

Traditionally, the NCA has allowed mobile network operators to set their prices.

However, MTN’s market share, exceeding 75% across voice, data, SMS, mobile money, and revenue, has triggered intervention under Section 25 of the Electronic Communications Act (Act 775). This section empowers the NCA to regulate prices when a single dominant player exists or engages in anti-competitive practices.

The NCA had previously accused MTN of violating SMP rules by offering lower-priced data bundles compared to competitors. These practices raise concerns about potential predatory pricing to drive smaller players out of the market.

Indeed, in February last year, NCA reported that they saved the non-significant market power operators about 30% of the money to be paid to MTN for asymmetrical interconnect asymmetrical interconnect fees of about GH¢86.6 million.

This the NCA intends to help in correcting the market imbalance.

Meanwhile, the NCA had published draft guidelines for public comment.

Key points include:

Preventing Undercutting: Significant Market Power or dominant operator will be prohibited from offering the lowest prices for any service, preventing them from squeezing out competitors.

Capping Price Advantage: Significant Market Power or dominant operator prices cannot exceed those of other operators by more than 10%, ensuring fair competition and preventing exploitation of its dominant position.

Prior NCA Approval: Significant Market Power or dominant operator must seek NCA approval before changing tariffs, allowing for assessment of potential impact on other operators.

Limited Price Increases for Others: Non-SMP operators can adjust prices without prior approval but require NCA authorization if their proposed price exceeds Significant Market Power or dominant operator.

The NCA emphasised that these guidelines align with international best practices to ensure fair, reasonable, and non-exploitative pricing, particularly from Significant Market Power or dominant operators.

Public feedback is also crucial to shaping the final regulations. Ghanaians have until March 8, 2024, to submit their comments.

While the NCA attempted to level the playing field, questions still remain. Previous efforts, like saving non-SMP operators money on interconnection fees, have yet to translate into improved services or increased market share.

The effectiveness of these new regulations will depend on the NCA’s enforcement capabilities and the non-significant Market Power investments in network quality.

• Buduburam demolition: Gomoa Chief reveals how decomposed bodies were found [Watch]
• Veteran actor Mr. Ibu passes on
• Couple who went missing on Val’s Day found dead inside car

Interest rates fell for the 9^th consecutive week running in line with analysts’ forecasts.

According to the auction results by the Bank of Ghana, the 91-day T-bill eased by 83 basis to 26.99%.

Similarly, the 182-day bill also went down to 29.49% from the previous 29.74%.

Again, the 364-day bill declined by 29 basis points to 30.0%.

Based on the happenings since the beginning of the year, the rates are expected to go down further this week.

Meanwhile, the government recorded about 19.9% percent oversubscription of the treasury bills auction, as demand for the short-term instruments remained high.

The total bids tendered by the investors were estimated at GH¢4.963 billion. The uptake was estimated at GH¢4.940 billion.

Chunk of the bids this time around came from the 6-month bill. The uptake was GH¢1.843 billion.

It was followed by the 91-day bill in which GH¢1.833 billion of the bids were tendered. All were accepted.

About GH¢1.263 billion of the bids came from the 364-day bill. Once more, all the bids were accepted.

The World Bank is threatening to cancel loans earmarked in Ghana over the passing of the controversial Anti-LGBTQI+ Bill, known formally as the Human Sexual Rights and Ghanaian Family Values Bill 2024.

The Bretton Woods institution, whose funding this year is seen as critical to sustaining Ghana’s programme with its sister body the International Monetary Fund, has raised “concerns over the potential impact of the Promotion of Proper Human Sexual Rights and Ghanaian Family Values Bill on the implementation of World Bank projects and activities in Ghana”.

Parliament is expected to consider at least three major facilities from the World Bank worth at least $850 million. A withdrawal of these loans could jeopardise the entire IMF programme and the related debt restructuring programmes.

There is grave concern what the implications of this could be for Ghana’s economic recovery effort, with signs of business confidence returning and fresh recruitment staging a comeback. Already the cedi is feeling the shakes, experiencing depreciation against all major currencies on Friday.

World Bank letter

Correspondence seen by Asaase News shows that the World Bank began to issue warnings during the debate stages of the Bill.

In August 2023 the World Bank referred Ghana to a similar decision it took that month to cancel new loans to Uganda over the East African country’s harsh new anti-gay law. Interestingly, analysts have described Ghana’s “Human Sexual Rights and Family Values Bill” as even harsher.

The much-criticised bill which was passed last week in Ghana was by way of a private member’s bill, sponsored by eight members of Parliament in January 2021, and passed only last week.

In one of the letters, signed by Pierre Laporte, the World Bank country director for Ghana, Liberia and Sierra Leone, and addressed to the Government of Ghana, the Bank warned that it was likely to adopt the same hardline position it took with Uganda last year when its parliament passed the Anti-Homosexuality Act.

“World Bank Group reiterates its deep commitment to supporting Ghana in achieving its development goals while ensuring that in the implementation of World Bank projects no beneficiaries are impeded from sharing in any development benefits on the grounds of their age, gender, ethnicity, religion, physical, mental or other disability, social, civic or health status, sexual orientation, gender identity, indigenous heritage, or economic status,” Laporte wrote.

The Ugandan position

In August 2023, the World Bank declared that it would halt new lending to the Ugandan government after concluding that its anti-LGBTQ law, which had been condemned by many countries and the United Nations, contradicts the Bank’s values.

“No new public financing to Uganda will be presented to our Board of Executive Directors until the efficacy of the additional measures has been tested,” said the World Bank in an 8 August 2023 letter to Ugandan government officials which was captured by Reuters.

“Uganda’s Anti-Homosexuality Act fundamentally contradicts the World Bank Group’s values. We believe our vision to eradicate poverty on a liveable planet can only succeed if it includes everyone, irrespective of race, gender or sexuality,” the World Bank stressed.

Unlike Ghana, Uganda is not under an IMF programme. Currently before Ghana’s Parliament is a $300 million World Bank loan. The fate of that facility is still hanging as the country awaits the last step in the legislative process of Ghana’s Anti-LGBTQI+ Bill – Presidential assent.

Sources at Jubilee House said that Parliament Is yet to present the Bill to the President.

ALSO READ:

Oti Regional Minister designate calls for unity amidst chieftaincy tensions

Akufo-Addo, wife, bid farewell to Gertrude Quashigah 

Cook-A-Thon: Chef Faila also fails in world record attempt

Policy Lead of Petroleum and Conventional Energy, Justice Yaotse is challenging claims by the Managing Director of the Electricity Company of Ghana (ECG), Samuel Mahama that the recent power outages are a result of maintenance work.

On March 1, Samuel Mahama denied claims that the recurrent power outages, also known as “dumsor” had returned and rather attributed the situation to maintenance work being undertaken by the company.

But Mr Yaotse insists that power outages affecting vast areas, towns, and regions repeatedly, cannot solely be attributed to maintenance works.

Speaking on the Pulse on JoyNews, March 1, he said “We have to interrogate this matter really well. I mean, this maintenance issue. Every now and then when these episodes come, they say it is maintenance. I mean what is the scale of the maintenance that is being done to the extent that the entire country (is affected)?.”

He insisted that, if the issue was just the maintenance of power, it was possible to carry them out without necessarily causing power outages.

“Because what I know is that for a power system, it is even possible to do maintenance without putting off the power and you don’t do maintenance across the whole country at the same time.

“Maintenance will probably be in phases so if there are going to be some problems then the problem is going to be in phases, but this looks like a widespread national problem that everybody is facing so it cannot be attributed to maintenance challenges,” he added.

He insisted that this claim cannot be entirely true.

READ ALSO:

• Defence Ministry inaugurates $1m military facility around Bui Dam
• Petrol, diesel, LPG prices to go up marginally – IES
• Jinapor brothers clash over ‘dumsor’ in Parliament [Watch]

Barring any intervention, consumers should expect further marginal increases in the price of petrol, diesel and Liquefied Petroleum Gas (LPG) in the coming days, the Institute for Energy Security (IES) has revealed.

According to the energy think tank, this is largely due to the worsened Ghana cedi.

“Following the continuous price hikes recorded by all refined petroleum products under consideration on the world fuels market in the past two weeks, the local market is likely to reflect these changes.

“Given the Ghana cedi’s poor performance, coupled with the rising prices of petroleum products on world fuels market, IES expects prices to increase marginally in the early days in the month of March [2024]”.

World fuel market

The IES said the Global Standard & Poor (S&P) Platts platform tracking of refined petroleum price data published at the close of trade on February 26, 2024, showed the price of diesel, petrol and Liquified Petroleum Gas (LPG) going for $871.75, $840.43, and $599.48 per metric tonne.

The published price data over the period indicated an increment in refined petroleum products under consideration.

Specifically, the net price effects realised indicated 1.56%, 3.24%, and 2.92% increase for diesel, petrol and Liquefied Petroleum Gas respectively.

Local fuel market performance

The second pricing window of February saw the price of petroleum products surge at the pumps in line with projections on the local fuels market.

The IES tracking of Oil Marketing Companies (OMCs) activities revealed that liquid fuels prices went up at an average of GH¢0.45 for diesel and GH¢0.30 for petrol per litre. LPG also increased by GH¢0.65 per kilogramme.

IES analysis of fuel price data gathered in the last two weeks pegged the national average price for petrol at GH¢13.32 for diesel, and petrol GH¢12.24 per lire respectively.

LPG also sold at GH¢13.65 per kilogramme (kg).

ALSO READ:

• OMCs start increasing fuel prices; diesel going for GH¢13.49 whilst petrol selling at GH¢12.69

• Gold for Oil has nothing to do with fuel prices reduction – IES

The Chief Executive of the Ghana Association of Banks (GAB), John Awuah, has said that there must a direct link between reduction in interest rates and improved economic environment.

He cautioned that banks cannot be forced to bring interest rates down when the economic fundamentals do not support such moves.

“Instances where the economy had turned around with some variables improving, the banks did moved quickly to review their rates. We should not try and get to that era where interest rates are forced down when it is not backed by the economic fundamentals”, he warned.

Mr. Awauh disclosed this on PM EXPRESS BUSINESS EDITION with host George Wiafe.

He argued that banks have always responded by reducing interest rates any time other macro-economic indicators improve.

“There have been several examples in the past which showed that when all these factors that influence interest rates drop, the banks have gone ahead to revise their rates”, he maintained.

Policy rate reduction and inflation rate   

The Monetary Policy Committee at its first meeting on January 23, 2023, cut the policy rate by 100 basis points to 29.0%. The inflation rate since July 2023 witnessed some significant drop until that marginal spike in January 2024.

Recalling some instances where the banks have reduced interest rates, Mr. Awuah pointed out that in times when the indicators have improved, financial institutions have used variable rates on loans.

“You should check with anyone who secured a facility at a variable rate and you realise that commercial banks in question have change their rates”, he added.

High interest rates and impact on commercial banks

The Bank of Ghana pegged average interest rates by the end of December 2023 at around 30.19%, from 25.51% in December 2022.

However, some analysts have described the rate as high posing financial challenges to businesses.

Responding to assertions that banks profit from high interest rates, Mr. Awuah argued that the high interest rates rather lead to high default rates.

“I don’t think it’s fair to link the profits that commercial banks are making purely to the high interest rates”, he stressed.

“For instance every, GH¢100 given out by commercial bank there is a likelihood that GH¢20 will not be paid back”, he added.

Interest rates in Ghana

The interbank weighted average rate remained well-aligned within the policy corridor by the end of 2023.

The weighted average rate increased to 30.19% in December 2023 from 25.51% in December 2022, in line with the monetary policy rate and supported by adjustments made in the cash reserve ratio.

The average lending rates of banks eased marginally to 33.75% in December 2023 from 35.58% a year earlier.

The Bank of Ghana (BoG) has effective today, March 1, 2024, revised the balance and transaction limits of customers’ mobile money wallets upward.

A statement from the Ghana Chamber of Telecommunications pointed out that the development is in line with increasing trends of transactional activities and evolving customer needs.

On daily transaction limits, customers with a minimum account which initially had a limit of GH¢2,000 has been upgraded to GH¢3,000, while medium account with a current limit of GH¢10,000 has been increased to GH¢15,000.

In the same line, an enhanced account with a GH¢15,000 threshold has been reviewed to GH¢25,000 daily.

On maximum accounts, a minimum account which initially had a limit of GH¢3,000 has been reviewed to GH¢5,000, while medium accounts with a current limit of GH¢25,000 has been increased to GH¢40,000.

The enhanced accounts with a GH¢50,000 threshold has been reviewed upwards to GH¢75,000.

On the breakdown of the review of monthly transactions limits, minimum account which initially had a limit of GH¢6,000 has been reviewed to GH¢10,000. 

The medium account which had no limits on the value of monthly transactions, remains unchanged, as well as the enhanced account which had no limits on the value of monthly transactions, remains unchanged.

“Kindly reach out to the personnel of our members at any of their customer service centers across the country, for any clarification you may need”, the statement concluded.

The Development Bank Ghana (DBG) has emphasised its commitment to supporting the growth and development of women entrepreneurs in the country.

The bank’s deputy Chief Executive, Michael Mensah-Baah, at the Investment Climate Reform (ICR) Facility – Development Bank Ghana Stakeholder Workshop revealed DBG’s plan to make 500 women-led businesses become beneficiaries of the GH₵1 billion fund expected to be deployed to support Small Scale Enterprises (SMEs).

According to him, DBG has collaborated with relevant stakeholders and like-minded financial institutions to make this ambition materialise in the next three to five years.

“DBG is a wholesale lending institution, that is, we lend to other financial institutions so we need to have partners who are like-minded like us, who will work with us, and who share this same ambition of being able to support women-led businesses,” he said on Wednesday.

The move comes as a response to a glaring issue of few women accessing financial support from financial institutions.

Interacting with the media at the event, Mr Mensah-Baah acknowledged the current disparity in access to finance, indicating that although 50 percent of businesses in Ghana are owned by women, only 10 percent of these businesses can access funding.

He noted that the workshop, therefore, was to serve as a platform to identify and address the barriers preventing women entrepreneurs from tapping into available financial resources.

“The issue we have discovered is that women who are available to receive this funding still struggle to get funding and we needed to have this workshop to understand some of the barriers that prevent them from accessing the funding.

“This is because even though the funding is available and the women are unable to access it, we won’t achieve our ambition of providing long-term capital for these women,” he stated.

According to him, the bank will not only provide financial support but will also offer capacity-building and technical assistance to empower women-led businesses.

He believed this technical training would support women-led businesses, facilitate their growth, and transform their businesses from micro-enterprises into large corporate entities in Ghana.

Emina Abrahamsdotter of the GFA Consulting Group, on her part encouraged collaboration between stakeholders to improve women’s access to finance in the country.

She also noted that staff of DBG and 15 other financial institutions will be trained on gender equality, gender mainstreaming and women’s financial empowerment.

Taking her turn, the Team Lead of Women Banking of Access Bank Ghana, Charity Ahadzie highlighted the numerous challenges faced by women entrepreneurs including lack of access to networking opportunities, information and finance.

She therefore noted that educating and training these women is a crucial form of empowerment to assist them grow their various businesses.

Madam Ahadzie therefore noted that her outfit which is a PFI-partner of DBG readily undertakes capacity building events to ensure that “whatever they are learning they will be able to plow it back into their businesses that way when you lend to them their businesses will grow and they will be able to repay.”

ALSO READ:

• Akufo-Addo launches Development Bank Ghana

• BoG, DBG sign MoU to commission study on “Innovative Financing for MSMEs in Ghana”

Challenges in accessing high quality raw materials, skilled labour and power supply are adversely impacting operations of the shoe and leather industry.   

Leading players in the sector say the industry sources most of its raw materials overseas with heavy tax impositions.    

They lament the high cost of product affects the cost and patronage of their wares.    

They spoke at the sidelines of a skills training workshop funded by the Ghana Skills Development Fund for shoemakers. 

Ghana’s shoes and leather industry, despite interventions by the government to boost operations, continues to grapple with logistical and human resource challenges.    

According to some industry players, the sector is presently faced with lack of access to locally-processed high quality raw materials, lack of skilled human resource, and unstable power supply for effective production.  

“Getting skilled workers to work with is a very daunting task. Another challenge would also be materials, the materials to work with. We have been working with the materials available to us all these years, but when you bring experts who come in, they appreciate our work, but they feel that our work could be better if we have the right materials and tools.

“The power crisis, especially within this period where we’ve been having the training. The power has been erratic,” Chief Executive of Horseman Shoes, Tonyi Senayah, said.   

Tonyi is prevailing on the government for a centralized policy guidelines for the leather industry. 

He believes the fragmented policy environment does not clearly outline the targeted goals and vision for the space to thrive.  

Tonyi Seneyah spoke on the sidelines of a skills training workshop organized for some industry players, including the persons living with disability.    

The 3-week workshop is aimed at honing the skills of beneficiaries in shoe, belts, wallets and other leathery accessories making.    

The 15 participants were taken through designing and pattern making for environmentally-friendly leather products.    

“Working with the same standard of Europe is a challenge,because that will demand a lot of resources,so we have to work with what we have,” Floria Dendzo, the facilitator, said.   

Some participants shared benefits derived from the training.    

Abdul Gafar a beneficiary said “I didn’t know persons with disability could benefit from this training,I’m really grateful to horseman for the opportunity to upgrade my skills”. 

Another beneficiary Godfred Nkrumah said: “This is the second time the Ghana Skills Development Fund is helping us with a trainer, and we’ve learnt a lot”.

“We thank the Ghana Skills Development Fund, GSDF, and their partners for supporting skills development in this country. We hope that donor agencies will find value for money and continue to support us,” Tonyi expressed.

The Anti-Smuggling Task Force on Wednesday February 28, 2024 continued their swoop on illicit vegetable oil imports, confiscating 1,450 gallons without proper documentation.

Importers are required to provide the necessary paperwork to avoid further action.

The Anti-Smuggling Task Force started the work from Madina, Atomic Junction to Dome market and ended in Okaishie and CMB.

In an interview, Paul Amaning who is the leader of the Task Force said the operation has yielded positive results.

He underscored the need for proper documentation regarding the confiscated vegetable oil to proceed with further actions.

Mr. Amaning also cautioned the public against purchasing oil in water bottles, highlighting concerns over its suitability for consumption.

It’s worth noting that while some individuals choose to smuggle goods through land borders, others prefer the legal route, transporting their products through ports and fulfilling tax and duty obligations.

However, this adherence to regulations is impacting their sales, as smuggled goods, sold without paying duties or taxes are priced as low as GH¢341.

“Some are doing a great job, and must be commended but as they are doing what is right. They are running out of business because after paying the right taxes and duties, their wholesale price shots up” he said.

The team will continue with its operation in various markets in Accra and proceed to other regions.

The Ghana cedi crossed the $13 mark as the depreciation of the local currency continued on February 28, 2024.

Most forex bureaus according to checks by Joy Business sold one US dollar for between GH¢13.05 and GH¢13.15.

Some analysts have attributed the recent depreciation of the cedi to incessant corporate demand, which they described as seasonal, and the over GH¢5 billion coupon payments of about 15 new Government of Ghana bonds to investors last week. However, they believe that the worsening situation goes beyond the two above issues.

The year-to-date depreciation of the local unit is about 5.36% after losing about 26 pesewas one American greenback in the last two days of this week.

The same situation can also be said about the pound and the euro as they are now are going for GH¢16.20 and GH¢14 respectively.

The cedi began this week going for GH¢12.85 on the retail market. However, the Bank of Ghana is quoting one dollar to GH¢12.40.

It weakened 1.37% week-on-week to the American greenback last week, as a result of immense corporate demand and cedi-funded foreign exchange pressure.

Some research institutions had earlier projected a mid-US dollar Ghana cedi rate at GH¢13.10/US$1 (-8.4% annual loss) with improving fundamentals, expected external inflows, and appropriate monetary policy stance partly offsetting election-related and external debt restructuring uncertainties.

ALSO READ:

Anti-LGBTQI+ bill: What changed your mind? Prof Gadzekpo asks Sam George

Franklin Cudjoe’s description of Akufo-Addo’s SONA will shock you [watch]

The Bank of Ghana Monetary Policy Committee (MPC) on Monday, January 29, 2024 announced a cut in the key policy rate of 100 basis points, from 30% to 29%.

This sounds like a big joke. It is hard to imagine what impact our BoG officials expect a 1% reduction from 30% to make on lending rates, inflation rate, exchange rate or economic growth, let alone what they expect to learn or observe from it. I wonder whether they have determined the correlation between interest rates, inflation and exchange rates in our country.

The hesitant 1% rate cut to 29% is particularly surprising given their expectation that headline inflation would “ease to 15%±2% by the end of 2024 and gradually trend back to within the medium-term target range of 8%±2% by 2025”. I do not see the relationship between the expected or target 15%±2% inflation and the high 29% monetary policy rate. It gives the impression that our top economists do not believe in themselves or their own forecasts.

More worrying is the possibility that they do not believe in their own numbers, given their new claim of signs of “emerging recovery”, having previously told us that the economy had “turned the corner”.

Policy rate and open market operations

A central bank’s policy rate and open market operations are supposed to influence the rate of inflation. But BoG officials still have a fixation on headline or year-on-year inflation, and so cannot depart from their reactionary monetary policy approach, which responds to what had transpired, that is, past one-year price changes, instead of their expectation of inflation (15%±2% this year). So, the 1% reduction in the policy rate appears to be a reaction to the 3.2% fall in headline inflation in December to 23.2%%, from 26.4% % in November.

Thus, the key rate that commercial banks use as reference for lending has been reduced to 29% after being pegged at 30% for six months. It is also invariably the reference rate for the Government’s domestic borrowing, setting a limit to the Government’s ability to exploit its power as the largest borrower. BoG often talked about “mopping up excess liquidity” without defining what was optimal. But an interest rate policy that results in 30% plus return to money market investors is itself responsible for the delivery of “excess liquidity”.

Victims of a myopic approach

I acknowledge the complexity of the interplay of the various macroeconomic variables. But as I wrote in my previous article, “BoG has failed us”, our ridiculously high interest rates have been partly responsible for our high inflation rates, constantly weakening cedi, business failures, joblessness, and worsening poverty levels, pushing many of our younger compatriots into a desperate search for greener pastures abroad. I am surprised that the IMF not only backed but has insisted on this approach over the years.

It is the reason why businesses have to borrow at 36%, at which rate the amount of indebtedness almost doubles every two years (The Rule of 72). It has made it impossible to achieve the much-needed diversification and restructuring of our economy. So our foreign-dominated economy has remained dependent on the export of raw materials and the importation of finished products.

We have been victims of this myopic approach to monetary policy, that has imposed structural bottlenecks on our economy, for over 20 years. This has made it impossible for Ghana to meet the convergence criteria for the Ecowas single currency, the Eco. Our economy needs urgent stimulation, and a timid 1% rate cut from 30% to 29% will not help.

The cedi has suffered over the years, the dollar having been on the loose, gaining almost 200% over the cedi since 2017. But for the currency redenomination of 2007, US$1 would have been selling at a bagful of cedis, GH₵120,000, today. We cannot stabilise the exchange markets while treasury bill investors are making 30% nominal return on their cedis. Parity laws tell us that will not happen.

Global shocks or self-inflicted tragedy?

BoG will blame global shocks for our woes. But as I pointed out previously, Zambia and Kenya, for example, exposed to the same global shocks, have done remarkably better. Zambia recorded 12.9% and 13.1 inflation rates in November 2023 and December 2023, respectively. Kenya recorded 6.8% and 6.6%, respectively. Today, the Bank of Zambia’s prime rate is 11% and that of the Central Bank of Kenya 13%.

Reckless borrowing and corruption have combined with high cost of borrowing to make Ghana Africa’s most indebted country. Sadly, after taking the difficult step to reduce domestic debt through the draconian DDEP, we are still piling up short term debt – 91 Day Bill at 29.35%, 182 Day Bill at 31.95% and 364 at 32.49% – even when demand is very high.

High interest rates evidence instability. Thus, the unnecessarily high domestic interest rates have fed into external market perception of our outlook, giving international capital market predators a field day. We cannot through our policy rate give an impression of high inflation or high credit risk outlook and expect the external financial markets to think differently. BoG’s approach has been costly for us in the international financial markets, where it has created an exaggerated risk perception, with adverse implications for our credit rating. COCOBOD is currently suffering the consequence, having to borrow at an unprecedented 8%.

Who is benefiting?

In the business sector, banking has been and will be the only beneficiaries, baring any future haircuts. And soon, we will be hearing the usual BoG’s self-serving statement that, “The banking industry’s performance has defied the general economic downturn with strong growth across key metrics including total assets and deposits, as well as sustained improvement in profitability…”. But it does not require any banking ingenuity to make

money in a 30% plus interest rate environment, even after providing for high levels of non-performing loans.

British financial economist and lecturer at Aston University in Birmingham, Dr. Sajid Mukhtar Chaudhry, was right when he said that banks in Ghana are too profitable. He suggested the imposition of a ‘Bank Tax’, as done by the likes of Australia, to generate more revenue for the Government. He thinks “it is not normal for banks to be that profitable”, and he expressed surprise that banks “earn much more than other industries” in Ghana.

Ultimately though, BOG were themselves victims of their bad monetary policy, announcing massive losses in 2022, totaling GH₵60 billion, and year-end negative net worth of GH₵55 billion, making it technically bankrupt. This is unprecedented in our history. The loss, equal to about 10% of our 2022 GDP, is one of the largest one-year losses ever recorded by a central bank.

Why the reluctance to cut rates?

But why is BoG clinging to a policy and an approach that has not only failed to keep inflation in check, but also made it difficult to effect the needed structural changes in the economy? The Bank’s virtual monopoly over government business and their ability to print money, no doubt, makes it a survivor.

One thing is clear however: BoG, given its extravagant spending, cannot hold its own in a low interest rate environment. This probably explains the need for the Bank to keep its policy rate high to protect its main revenue source – interest income. Its “interest and similar income” amounted to GH₵5.09 billion in the difficult post-COVID 2022, up 47% from GH₵3,46 billion in 2021, and represents 92.7% of its total operating income of GH₵5.49 billion.

It may also be the case that BOG is reluctant to see interest rates fall quickly at this critical time when it needs to make more money to survive bankruptcy. A GH₵55 billion negative net worth is a huge burden.

Living in a different world

Details of BoG’s 2022 annual report says a lot. As I pointed out previously, budgeted and actual expenditures do not look like those of a struggling country’s central bank: US$250 million for a new head office, equivalent to 0.35% of our GDP; GH₵97.4 million for travel; GH₵131 million for motor vehicle maintenance/running; GH₵32 million for communication; GH₵67 million for computers; GH₵207,7 million for premises and equipment; GH₵336.9 million for currency issue (currency in circulation amounted to GH₵40.73 billion); GH₵287.83 million for other administrative expenses, etc.

Personnel costs amounted to GH₵1.62 billion. With a total of 2,203 employees, this meant an average remuneration of a colossal GH₵735,361 per employee in 2022 or GH₵61,280 monthly per employee, including several allowances. These employees also had staff loans amounting to GH₵1.247 billion, an average of GH₵566,046 per head.

BoG is also reported to be remodeling its regional offices, while investing GH₵142 million in a 50-bed guest house in Tamale.

I still cannot believe BoG and its staff are living in a completely different reality. Apart from its excessive operating expenses, proper cost-benefit analysis would not justify its investment in a new head office building and non-core activities like a hospital and guest houses.

BOG vs Bank of England (BOE)

It is hard to believe how some BoG’s operating income and expenses compare with those of Bank of England (BOE). For example, BoG spent GH₵1.62 billion (£147.27 million at 2022 average cedi-pound exchange rate) on its 2,203 employees, translating to £66,851 per staff. BOE on the other hand, with an average labour force of 4,675 per their 2021-22 financial report, spent £448 million, an average of £95,829 per staff.

Unlike BOE staff, BoG staff also enjoyed staff loans, with an average of GH₵566,046 (£51,459) outstanding per employee.

BOG vs BOE: SOME INCOME AND EXPENDITURE FIGURES

*NA: Not Available

BOG vs BOE: EMPLOYEES AND REGULATED INSTITUTIONS

*Including 405 Foreign Exchange Bureaux.

BOE’s reports disclose the remuneration of individual executives. But BoG’s financial statements do not. So, a comparison is not possible. But BoG’s ten (10) non-executive directors earned GH₵5.1 million in 2022, averaging GH₵510,000 (£46,364) per director for the year, or GH₵42,500 (£3,864) per month.

BOE’s statement on the remuneration of non-executive directors shows that BoG’s non- executive directors are much better remunerated than their BOE counterparts. BOE’s rates, which were effective from 1 June 2009, were set at £15,000 per annum (£1,250 per month) for non-executive directors. Committee Chairs receive a little more. Non- executive directors do not receive any additional fees for serving on Committees.

I wonder whether BoG directors’ allowances were determined “in consultation with the Minister of Finance” as required under the Bank of Ghana Act.

One wonders also how the technically bankrupt institution is funding its exorbitant expenditures. BoG’s extravagance is typical of poorly supervised cash-rich state-owned enterprises, many of which increase remuneration and expenditures at will, as shown by the trend in staff numbers and costs at BOG captured below:

RECENT TRENDS: STAFFING AND STAFF COSTS AT BANK OF GHANA

*Estimate, based on average GH₵683 Board fee per month and average GH₵517 sitting allowance per month only,

So, can budget considerations be an important reason for BoG continuously keeping interest rates high, by linking it to year-on-year inflation instead of expected inflation?

Effectiveness of BOG’s inflation targeting

I want to emphasise that BoG’s approach to inflation targeting:

• has not worked and is unlikely to work because its policy rates (currently 29%) do not appear to have any relationship with its target or expected inflation rates (currently 15% by year-end), and
• has only succeeded in importing past inflation into the future, trapping us in a vicious circle of high inflation→ high interest rate→ high cedi depreciation→ high inflation, making Ghana’s inflation and currency depreciation rates some of the worst on the continent.

By virtually indexing its policy rate to year-on-year inflation, BoG has indexed our economy to past inflation. This kind of indexation produced the self-fulfilling prophesy that led to the real crisis in Brazil in 1999, when the value of the Brazilian real dropped 35%.

As I pointed out previously, the reduction that we saw in the headline inflation rate recently was largely the result of what happened to prices one year earlier, the effect of which should die out. It should also be noted that, even though maintaining the current high policy rate will not help the fight against inflation, a reduction in BoG’s policy rate from 30% to 20%, for example, should not necessarily produce inflationary consequences. Thus, the timid 1% reduction may have been influenced by the survival issues surrounding BoG itself.

Urgent need for change

In its Annual Report and Accounts 1 March 2021 – 28 February 2022, BOE described itself as “a human and humble Bank, in step with the changing world”. Their definition of a human Bank “is one where colleagues feel able to be themselves and speak openly and honestly about their views. A humble Bank is one where we listen as much as we speak, and recognise that we are made stronger by learning from others. And a Bank in step with the changing world is one that looks outwards and forwards and applies those insights to our enduring mission”.

Having failed over the years to keep inflation in check, it is sad to see BoG pursue the same approach that has failed to deliver the desired outcomes. It is about time BoG listens and applies more forward-looking principles in pursuing its mission. Success in policy formulation requires open-mindedness, outstanding imagination, and sound judgement.

BoG’s objectives and autonomy

I want to emphasise that price stability is not an end in itself. Probably more important are growth and employment generation, in which the BOG must show interest. We need to clarify BOG’s mandate and improve its governance to mitigate the profit motive.

As I pointed out previously, no institution of state can claim absolute autonomy, and neither does the independence of the BOG require that the Governor should be Chairman as well. It will, at the very least, enhance internal check if the two roles are separated.

At BOE, the effectiveness and authority of its Court (Board) of Directors provides the necessary balance. The Court:

• has an independent non-executive chairman
• has an Independent Evaluation Office that supports its work, and
• may commission external performance reviews (including, retrospectively, into policy decisions).

All said, if BoG does not change its predatory lending practices, it will continue to undermine the real sectors of our economy and frustrate efforts to develop the bond and mortgage markets. Worst still, we will, sooner than later, be back to the IMF for the 18th time.

Anti-LGBTQI+ bill: What changed your mind? Prof Gadzekpo asks Sam George

A joint task force led by the Tree Crop Development Authority [TCDA] has begun sanitising markets by seizing smuggled cooking oil.

On Tuesday, February 27, 2024, the task force including a team from the Oil Palm  Development Association of Ghana [OPDAG], the Ghana Revenue Authority (GRA)—Customs Division, and National Security, confiscated over 10,000 gallons of 10 litres of smuggled oil from Kasoa New Market, Mallam Market, and Adabraka New Market.

The task force seized over 6,000 gallons of smuggled cooking oil from Perfect End Logistics at McCarthy Hill. The task force also confiscated over 2,000 gallons of smuggled cooking oil brands from Kasoa New Market’s Jaa-Mission Enterprise and four other retail shops.

At Adabraka Market, the task force seized over 2,000 gallons of smuggled cooking oil from Golden Future Impex Limited, and 250 gallons of smuggled cooking oil was also impounded at Mallam Market.

Owners of the seized cooking oil at the various markets are expected to provide the GRA-Customs Division with the necessary documentations before their locked shops would be opened.
The exercise, which began in November 2023, saw the joint task force visit various shops to fish out smuggled cooking oils such as Aicha, Ami, and others into the country, which are sold at cheaper prices, causing local producers to lose money.

Upon visiting some shops where large quantities of smuggled oils were discovered, the owners denied having any knowledge of the oils being smuggled into the country.

The coordinator of the joint task force, Mr. Paul Amaning, told the media that the reason for the task force storming the various market centres is to ensure that locally manufactured cooking oils are sold on the market to help boost the economy and create jobs in the value chain.

He added that the task force would not confiscate any imported cooking oil when the appropriate requirements had been met by the shops selling it.

“Once you import your cooking oil through the right channel that is the port and pay the necessary duties, we are okay with it”, he emphasized.

He further cautioned the general public, especially market women, to desist from smuggling vegetable oil through the land borders into the country.

“We will not hesitate to seize any smuggled cooking oil we see on the market. We can’t assure the safety of any smuggled cooking oil since the FDA hasn’t approved it. The local brands include Frytol, Hayat [Ghana made], Golden oil, others”, he stressed.

Mr. Amaning stated that the operation would continue until they have sanitised the entire market.

The Oil Palm Development Association of Ghana [OPDAG] lamented the constant smuggling of vegetable oil to the country through unapproved routes by some traders is depriving the local producers of over 600,000 metric tonnes of vegetable oil production monthly.

According to Mr. Selorm Quame, Executive Secretary of OPDAG, 300,000 of the 560,000 oil palm farmers are at risk of losing their jobs as a result of some market women’s constant dealings with vegetable oil smugglers.

Between 2017 and 2022, the government disbursed a total of GH¢300,385,317.52 in judgement debt.

This is according to information released by the Ministry of Finance in August 2023.

The payments were made to more than 60 individuals and organizations, as detailed in the updated report on judgement debt payment.

The sums ranged from a few thousand cedis to over GH¢50 million, with the highest amounts allocated to corporate entities.

For instance, in 2017, Albert Osei received GH¢279,412.83; Daniel Nii Quartey and John Addai were paid GH¢35,300.00; Madam Martha Wood received GH¢306,800.00; NDK Financial Services Limited obtained GH¢29,510,855.06; Moses K. Yeboah was granted GH¢157,596.91; Asmona Limited was allocated GH¢2,400,000.00; Yaw Eliasu & 57 Others were awarded GH¢502,025.61, and Vacuum Salt Product Limited received GH¢57,202,751.00 in judgement debt.

The breakdown of payments is as follows:

2017:

Albert Osei – GH¢279,412.83
Daniel Nii Quartey and John Addai – GH¢35,300
Madam Martha Wood – GH¢306,800
NDK Financial Services Limited – GH¢29,510,855.06
NDK Financial Services Limited – GH¢20,000,000
Moses K. Yeboah – GH¢157,596.91
Asmona Limited – GH¢2,400,000
Yaw Eliasu & 57 Others – GH¢502,025.61
Vacuum Salt Products Limited – GH¢57,202,751

2018:

M/S Jubilee Tractors and Assembly Plant Ltd – GH¢30,912,310.44
Benjamin Osei Afeng – GH¢26,568
Francis Donkor – GH¢23,775
W.O.1 (Rtd) Adjei Boadi – GH¢92,373
Ex-Workers of the SFC – GH¢891,002.50
Richard Peprah – GH¢290,000
Stephen Arthur – GH¢800,000
J.W.K. Asigbe & 22 Others – GH¢2,134,757.28
Felix Kwame Ferka – GH¢49,541
NDK Financial Services – GH¢50,000,000
Balkan Energy Limited – GH¢67,023,490.17
M/S Electrical Engineering – GH¢850,000

2019:

First Love Church – GH¢136,500
Benedicta Tamakloe – GH¢2,550
Nana Yaw Agyei – GH¢1,020
Mr. & Mrs. George Williams – GH¢7,142.55
Chude Mba – GH¢3,771,957.26
Madam Theresa Tinkorang – GH¢3,510,000
State Housing Company Ltd – GH¢143,677
Samuel Adumoah Okwei and 2 Others – GH¢808,169.81
Ideal Finance Limited – GH¢5,412,279.60
Nana Namoakah Arizie III – GH¢176,500

Check details here

The Bank of Ghana (BoG) has recently announced an upward adjustment of balance and transaction limits for customers’ mobile money wallets, scheduled to take effect from March 1, 2024.

In line with the statement released by the Ghana Chamber of Telecommunications, this revision reflects the increasing volume of transactional activities and evolving customer needs.

The revised limits entail higher daily transaction caps across various tiers of mobile money accounts.

The minimum account, previously limited to GH¢2,000, will now have a cap of GH¢3,000, while medium accounts, formerly set at GH¢10,000, will see their limits raised to GH¢15,000.

Likewise, the threshold for enhanced accounts, previously at GH¢15,000, has been increased to GH¢25,000 per day. Maximum account limits have also been adjusted upwards, with the minimum account limit rising from GH¢3,000 to GH¢5,000, medium account limits increasing from GH¢25,000 to GH¢40,000, and enhanced account limits climbing from GH¢50,000 to GH¢75,000.

Regarding monthly transaction limits, the minimum account, previously capped at GH¢6,000, will now be limited to GH¢10,000.

However, there are no alterations to the monthly transaction limits for medium and enhanced accounts.

For further clarification on these changes, customers are encouraged to reach out to customer service representatives at their respective mobile money service providers nationwide, as indicated in the announcement.

Read the entire release below;

FOR IMMEDIATE RELEASE

MOBILE MONEY WALLETS – UPWARD REVISION OF CUSTOMER BALANCE AND TRANSACTION LIMITS

Accra, February 27, 2024 – The Ghana Chamber of Telecommunications presents its warm compliments to all customers of its members, the Dedicated Electronic Money Issuers in Ghana.

We would like to use this opportunity to communicate the upward revision of the balance and transaction limits of customer wallets as approved by the Bank of Ghana.

This would take effect from March 1, 2024. This development is in line with increasing trends of transactional activities and evolving customer needs.

Below is a breakdown of the review of daily transactions limits;

1. A minimum KYC Account which initially had a limit of ¢2,000 has been upgraded to ¢3,000.

2. A medium KYC Account with a current limit of ¢10,000 has been increased to ¢15,000.

3. An enhanced KYC Account with a ¢15,000 threshold has been reviewed to ¢25,000.

Below is a breakdown of the review of Maximum Account Balance limits;

1. A minimum KYC Account which initially had a limit of ¢3,000 has been reviewed to ¢5,000.

2. A medium KYC Accounts with a current limit of ¢25,000 has been increased to ¢40,000.

3. An enhanced KYC Accounts with a ¢50,000 threshold has been reviewed upwards to ¢75,000.

Below is a breakdown of the review of monthly transactions limits;

1. A minimum KYC Account which initially had a limit of ¢6,000 has been reviewed to ¢10,000.

2. A medium KYC Account which had no limits on the value of monthly transactions, remains unchanged.

3. An enhanced KYC Account which had no limits on the value of monthly transactions, remains unchanged.

Kindly reach out to the personnel of our members at any of their customer service centers across the country, for any clarification you may need.

About the Ghana Chamber of Telecommunications

The Ghana Chamber of Telecommunication is an industry association and a private initiative by the mobile network operators in Ghana.

We are an advocacy institution established to help direct telecommunications policy, legislation and regulation, and pursue research towards the development of telecommunications industry.

As the voice of the mobile operators and tower companies in Ghana, we work through direct engagements with government (institutions), civil society, key stakeholders and consumers to shape the mobile ecosystem and maximize the socio-economic benefits of mobile in Ghana. The Chamber was registered in 2010 and inaugurated in 2011. 

ALSO READ:

Akufo-Addo’s alcohol comment: He was not shading anyone – Fatimatu Abubakar [Listen]

We are shedding load – John Jinapor asserts [Listen]

A Professor of Finance at the University of Ghana Business School, Godfred Bokpin, has challenged the conventional celebration of Gross Domestic Product (GDP) growth.

According to him, there is a need for a more comprehensive approach to measuring development and progress.

Speaking on JoyNews’ PM Express, Mr. Bokpin expressed a shift in perspective, stating, “We are no longer going to celebrate GDP growth because it doesn’t necessarily imply that standards of living or development has arrived or has come.”

The Professor mentioned the concept of the “5Ps” as a framework for assessing development.

According to Prof Bokpin, development must impact ‘people’, reflect ‘peace’, demonstrate ‘partnership’, lead to ‘prosperity’ and preserve the ‘planet earth’.

He called for a critical evaluation of whether the progress touted by President Akufo-Addo when delivering the State of the Nation Address on Tuesday aligns with these five metrics.

“When we talk about development, progress, it must impact the people,” he reiterated.

He further indicated that Ghana has seemingly been “laying a foundation” without clear progress towards sustainable development since 1992.

“I don’t know what kind of building we want to put up on that foundation that it has taken us 32 years, and we are still laying a foundation, restoring, and rebuilding,” he remarked.

The Professor also questioned the tangible impact of these efforts on the lives of Ghanaians.

The Ghana cedi is inching closer to GH¢13.00 to one US dollar barely two months into 2024 as the depreciation of the local currency continues unabated.

Checks by Joy Business at some forex bureaus indicate that the local currency is being sold for GH¢12.98 to one American greenback.

The year-to-date depreciation of the local unit also stands at a little over 5% after losing about 20 pesewas in the last two days of this week.

The cedi began this week going for GH¢12.85 but has since lost 13 pesewas to the dollar. The Bank of Ghana is quoting one dollar to GH¢12.39.

The local unit weakened 1.37% week-on-week to the American greenback last week, as a result of immense corporate demand and cedi-funded foreign exchange pressure.

Despite the Central Bank selling $18.5 million on the spot market, it could not keep the cedi afloat as it weakened to close at a mid-rate of GH¢12.75 to the dollar.

Similarly, the cedi shed 1.10% and 1.47% to the pound and the euro, respectively, on the retail market.

It is presently selling at GH¢16.20 and GH¢13.90 to the pound and the euro respectively on the retail market.

Some research institutions had earlier projected a mid-US dollar Ghana cedi rate at 13.10/US$1 (-8.4% annual loss) with improving fundamentals, expected external inflows, and appropriate monetary policy stance partly offsetting election-related and external debt restructuring uncertainties.

READ ALSO:

Clampdown on crime: Buduburam ghettos, Liberia camp demolished

No more free pepper soon — Ga kenkey sellers

Mentally challenged man beheaded at Odumasi

The government will soon present a Legislative Instrument before Parliament to prohibit the export of bauxite in its raw state, President Akufo-Addo announced.

This move is part of Ghana’s efforts to bolster its industrialization drive.

“Mr. Speaker, to spur our industrialization, we are implementing the Four Project Agenda of the Ghana Integrated Aluminium Development Corporation (GIADEC), with Projects 1 and 2 already underway, and last month, we signed an agreement for the implementation of Project 3.

“We will lay before this august House, at this First Meeting of this Session of Parliament, a Legislative Instrument to prohibit the export of bauxite in its raw state,” he stated.

President Akufo-Addo made the announcement during his State of the Nation Address (SONA) to the 8th Parliament on February 27.

He added that, the government is in the concluding phase of discussions for the establishment of a $450 million refinery to refine the manganese produced in the country.

ALSO READ:

SONA 2024: Success of Free SHS has silenced critics – Akufo-Addo
No more free pepper soon — Ga kenkey sellers

SONA 2024: ‘JM b3ba’ – Mahama’s introduction triggers immense cheers from…

The Bank of Ghana (BoG) has revised the balance and transaction limits of customers’ mobile money wallets upward, effective March 1, 2024.

A statement from the Ghana Chamber of Telecommunications pointed out that the development is in line with increasing trends of transactional activities and evolving customer needs.

On daily transaction limits, customers with a minimum account which initially had a limit of GH¢2,000 has been upgraded to GH¢3,000, while medium account with a current limit of GH¢10,000 has been increased to GH¢15,000.

In the same line, an enhanced account with a GH¢15,000 threshold has been reviewed to GH¢25,000 daily.

On maximum accounts, a minimum account which initially had a limit of GH¢3,000 has been reviewed to GH¢5,000, while medium accounts with a current limit of GH¢25,000 has been increased to GH¢40,000.

The enhanced accounts with a GH¢50,000 threshold has been reviewed upwards to GH¢75,000.

On the breakdown of the review of monthly transactions limits, minimum account which initially had a limit of GH¢6,000 has been reviewed to GH¢10,000. 

The medium account which had no limits on the value of monthly transactions, remains unchanged, as well as the enhanced account which had no limits on the value of monthly transactions, remains unchanged.

“Kindly reach out to the personnel of our members at any of their customer service centers across the country, for any clarification you may need”, the statement concluded.

President Nana Addo Dankwa Akufo-Addo has revealed that the government has fulfilled its financial pledges by clearing the final coupons owed to domestic bondholders.

In 2023, the government initiated a domestic debt exchange program aimed at individual and pension bondholders as part of its revenue strategy to meet the requirements of an agreement with the International Monetary Fund (IMF).

Delivering the State of the Nation address (SONA) to Parliament on Tuesday, February 27, President Akufo-Addo disclosed that, an amount of GH¢5.8 billion has been paid to the bondholders.

“A week ago, last Tuesday, on 20th February 2024, the second coupon of five-point-eight billion cedis (GH¢5,847.72 million) was paid to domestic bondholders. This is the largest coupon paid in a day in Ghana’s history.”

He further stated that the government is presently in discussions with Ghana’s external creditors to ensure the smooth implementation of the extended credit facility with the IMF.

“On the external debt side, we achieved a significant milestone by reaching an agreement with our public creditors, and I will use this occasion to express our appreciation to the Republic of France and the People’s Republic of China, co-Chairs of the Official Creditors Committee, for their positive roles in this achievement. We have also intensified our engagement with our external bondholders on the principles of transparency, fair treatment, consistency with the IMF debt sustainability analysis, and good faith. We are focused and committed to accelerating the process,” he said.

President Akufo-Addo has reaffirmed his commitment to supporting cocoa farmers in the upcoming season.

During his State of the Nation address on Tuesday, February 27, he said his government increase the cocoa price per bag from GH¢800 to GH¢1,300 because it has the welfare of cocoa farmers at heart.

“Mr Speaker, we all witnessed the spectacular increment of the cocoa price from eight hundred cedis per bag (GH¢800) to one thousand, three hundred cedis (GH¢1,300) per bag in the current cocoa season, the highest increase in fifty (50) years.

“With the current trend of the world cocoa price, cocoa farmers can be sure that I will do right by them in the next cocoa season,” said President Akufo-Addo.

READ ALSO:

SONA 2024: MPs chant as Akufo-Addo eulogises Bawumia [Watch]

Full text of Akufo-Addo’s 2024 SONA

SONA 2024: ‘JM b3ba’ – Mahama’s introduction triggers immense cheers from…

President Nana Addo Dankwa Akufo-Addo has said the recent changes at the Ministry of Finance will not affect agreements made with the International Monetary Fund (IMF) bailout.

Ghana has secured a three-year US$3 billion Extended Credit Facility (ECF) to bolster Ghana’s economic policies and reforms.

But following the removal of Finance Minister, Ken Ofori-Atta, many speculated that, it might affect the deal with IMF.

But President Akufo-Addo while delivering the State of the Nations Address in Parliament on February 27 allayed the fears of Ghanaians.

He said current Finance Minister, Mohammed Amin Adam is capable to handling all negotiation with IMF.

“Mr Speaker, it is important to underline that the recent change in the leadership of the Finance Ministry will not affect the Government’s commitment to implementing the terms agreed with the IMF to ensure that we restore the economy to healthy growth as soon as possible” President Akufo-Addo stated.

ALSO READ:

SONA 2024: Asiedu Nketia and Nana Konadu refuse to shake hands in Parliament [Watch]

SoNA 2024: Akufo-Addo shades NDC MPs [Video]

SONA 2024: ‘JM b3ba’ – Mahama’s introduction triggers immense cheers from…

Enterprise Insurance Ltd, Ghana’s oldest and leading private insurer in Fire, Marine, Motor and General Accident as part of its centenary celebrations held its mammoth centenary anniversary thanksgiving service at the Accra International Conference Centre.

The thanksgiving service held on the theme: “Celebrating our legacy, securing your future” is in commemoration of business’ 100 years celebrations.

This embodies Enterprise Insurance’s rich history of providing Ghanaians with peace of mind and unwavering protection, and the company’s continued commitment to excellence in the years to come. Since its inception in 1924, the company has weathered economic storms, embraced innovation, and consistently delivered reliable insurance solutions, solidifying its position as a pillar of trust and stability.

Managing Director of Enterprise Insurance, Mrs. Akosua Ansah-Antwi, in an address at the ceremony said “We are so grateful to God for how far he has brought us. Today we have come to thank Him for his goodness to us as we begin our centenary celebrations. We are nothing without our loyal customers and on behalf of the entire group, I want to appreciate our customers for their continued patronage over the years. God bless you all and we look forward to an amazing year full of exciting activities. May the good Lord continue to see us through to another 100 years and beyond”.

She thanked all staff for their dedication and hard work over the years “I sincerely thank  all staff, past and present for their diligence, commitment and self-motivation, without which this would not have been possible”.

The business also paid tribute to the deceased members of the EIC family especially the Late Ernestina Abeh who served as the immediate past Managing Director of the company.

The guest preacher, Bishop Emeritus James Saah of Action Chapel International explained the essence of thanksgiving.

He lauded management of Enterprise Insurance Ltd for investing their time and resources to thank God for his mercies and blessings on the business.

Bishop Emeritus James Saah prayed for the management and staff of Enterprise Insurance and the entire Enterprise Group to continue to make an impact in Ghana.

Ministering at the service were the Harmonious Chorale, Joe Mettle, Joyful Way Incorporated, Kofi Owusu-Peprah, Minister Ph3l and the company’s own choir, the Advantage Choir.

In attendance were the former Minister of Finance, Mr. Ken Ofori-Atta, the Acting Commissioner of Insurance, Michael Andoh, President of the Ghana Insurers Association, Seth Koblah Aklasi, Board Chairman of the Enterprise Group PLC Keli Gadzekpo, Board Chairman of Enterprise Insurance LTD, Mr. Martin Eson-Benjamin, CEO of the Enterprise Group, Daniel Larbi -Tieku, board members and Managing Directors of other subsidiaries.

Through this centennial celebration and the thanksgiving service, Enterprise Insurance Ltd. Continues to reaffirm its unwavering commitment to safeguarding the future of Ghanaians and contributing to the nation’s continued progress.

The Ghana cedi has lost about 4.44% in value to the US dollar since the beginning of the year.

Last week, the local currency weakened 1.37% to the American greenback week-on-week, as a result of immense corporate demand and cedi-funded foreign exchange pressure.

Despite the Central Bank selling $18.5 million on the spot market, it could not keep the cedi afloat as it weakened to close at a mid-rate of GH¢12.75 to the dollar. Similarly, the cedi shed 1.10% and 1.47% to the pound and the euro, respectively, on the retail market.

The government during the week paid off coupon obligations on the new bonds, releasing a total of about GH¢5.1 billion to investors.

Nonetheless, the pressure on the cedi continued on Monday, February 26, 2024, with the local currency selling at GH12.85

Analysts believe the improved liquidity of the local unit on the market supported the cedi funding towards foreign exchange demand.

Additionally, investors are pricing in uncertainties regarding rising inflationary pressures.

The analysts expect a similar narrative at the close of this week as the cedi continues to weaken across the major trading currencies.

ALSO READ:

Three police officers killed J.B Danquah Adu, not Daniel Asiedu- Counsel tells court

Tema-Mpakadan train embarks on journey to Ghana [Video]

Guinness World Records broke our contract – Afua Asantewaa

The Government has plans to set up a FinTech Innovation Fund to support Start-ups to drive Ghana’s digital revolution.

Vice President Mahamudu Bawumia announced this in Accra on Monday during the official press launch of the maiden 3i Africa Summit.

The three-day summit, to be held in Accra, is scheduled for May 13-15, 2024, on the theme: “Unleashing Africa’s FinTech and Digital Economic Potential”.

The event, being organised by the Bank of Ghana (BoG) and the Development Bank Ghana (DBG), in partnership with Elevandi, a subsidiary of the Monetary Authority of Singapore, would attract governments, businesses, policy-makers, academia, investors and thought leaders.

Participants are expected to discuss and collaborate on unlocking Africa’s full potential on FinTech and digital economy, especially innovation.

Vice President Bawumia, who had championed the government’s national digitalisation agenda, over the past seven years, said the path to Ghana’s digital revolution was through FinTech, hence, it was imperative to support them financially to thrive.

He, therefore, encouraged all stakeholders in the FinTech and digital industry to join forces in improving the legislative and regulatory environment in order to enhance the payments ecosystem and position Ghana on the path of sustained financial inclusion.

The power of technology, Dr Bawumia noted, would improve productivity and connectivity to empower individuals through FinTech startups, as well as small and medium scale businesses to increase innovation, and efficiency in the operations of institutions.

It was against this background, he said, the Government, in the past seven years, had focused on pursuing a digital transformation agenda as part of its economic strategy at the individual and institutional levels.

“The objective is to ensure digital empowerment for a prosperous future in this accelerated digital era, where the use of modern and emerging technologies have become commonplace and a catalyst for growth, progress, and prosperity,” Dr Bawumia stated.

With respect to that, the Vice President mentioned Government’s intention to setup a FinTech and Innovation Fund with the aim of providing the needed investment required for startups and local FinTech companies to scale up in order to drive Ghana’s digital revolution.

The Minister of Finance, Dr. Amin Adam who was also present at the occasion, reiterated the importance of supporting startups and local businesses as they have become key contributors to the Ghanaian economy.

According to him, Government is committed to implementing programmes that generate growth from within with a focus on the growth of small businesses. It is in this regard that the Bank of Ghana in collaboration with the Development Bank Ghana (DBG) and the University of Ghana Business School (UGBS) launched the MSME Innovative Finance Project, a research study to determine the current and emerging challenges of SME financing in Ghana.

In all these DBG has been a catalyst and glue, by bringing key players like the Bank of Ghana, University of Ghana and a host of other government agencies and commercial banks together and driving the agenda in line with their mandate of supporting SMEs in order to secure a transformation of the economy.

3i Africa Summit is a FinTech festival to drive Innovation, Investment and Impact for Africa’s FinTech and Financial Services sectors.

The initiative is jointly developed by the Bank of Ghana, the Monetary Authority of Singapore, Development Bank Ghana, and supported by Elevandi to spearhead transformative discussions, address key growth and investment opportunities, and explore how market players in the financial ecosystem are leapfrogging in digital transformation and pioneer the much-needed dialogues and actions to drive Africa’s FinTech growth. 

ALSO READ:

• Fintech driving the growth of e-commerce in Ghana

• We have invested heavily in technology to correct weaknesses among banks – Governor

Chairman of Parliament’s Mines and Energy Committee, Samuel Atta Akyea has rejected allegations suggesting that Ghanaians were cheated in the GRA-SML contract, labeling them as mere propaganda.

Following an investigative report by the Fourth Estate in December 2023, SML refuted claims of a 10-year contract, asserting instead that the agreement spanned 5 years. Moreover, SML denied accusations of siphoning $100 million annually from the deal.

During a visit to the Tema division of SML for fact-finding purposes, Atta Akyea cautioned against hastily branding the contract as a channel for political corruption.

He stressed the importance of awaiting the findings from President Akufo-Addo’s initiative and engaging formally based on KPMG’s assessment.

“The committee is very careful not to prejudice what President Akufo-Addo is trying to do. Let Jubilee House come out with their findings based on what KPMG will say, we will engage them formally. What I hate is to try and do propaganda when you don’t have the facts and that is what some people are doing.

“A lot of people don’t have any clue as to what these individuals, this company is doing, yet they come to conclusions and for me, that is very sad. You have not even gone to their data room to see what they are monitoring and the world-class audit they are doing, and you come to the conclusion that this is a conduit for political bribery and all the kinds of things people might want to say, it leaves much to be desired. Those who are interested in knowing the truth will know” Mr. Atta Akyea stated.

The Institute for Energy Security (IES) and the Chamber of Petroleum Consumers (COPEC) have urged the National Petroleum Authority (NPA) to disclose the sanctions imposed on the Chinese-owned Sentuo Oil Refinery (SORL).

Expressing concerns on Wednesday, February 21, 2024, the two energy think tanks criticized the NPA for what they perceive as leniency towards Sentuo Oil Refinery’s operations.

They highlighted issues such as operating without the required permit and supplying fuel of questionable quality.

COPEC and IES also threatened legal action to compel the refinery to comply with regulations. They also called for an investigation by the Office of the Special Prosecutor (OSP) into the refinery’s activities.

However, the NPA refuted claims of favoritism towards Sentuo Oil Refinery, stating that it has consistently enforced industry regulations fairly.

Unsatisfied with the NPA’s response, COPEC and IES issued a counter-statement demanding transparency.

They urged the NPA to publicly disclose the full extent of sanctions imposed on Sentuo Oil Refinery.

“To proceed, the IES and COPEC is requesting of the NPA to make public the full stream of sanctions imposed on SORL since it released the unwholesome products onto the Ghanaian market as the said products are believed to be off specification,” portions of the statement said.

“Finally, the NPA must be made aware of the fact that any such sanctions on the Chinese refinery must factor due and appropriate compensations to both Association of Oil Marketing Companies and its members affected by the bad fuel and its attendant challenges on their facilities as well as the consumers who patronized these products and are currently grappling with one issue or the other on their engines,” the statement further added.

Cook-a-thon: Clemento Suarez, Mama Zimbi, Adu Safowaa, others visit Chef Smith

Man caught red-handed having sex with donkey

Interest rates eased for the 8^th week running on the treasury market but marginally.

Indeed, the yields on the treasury bills continued to ease in line with most analysts’ forecasts.

According to the auction results by the Bank of Ghana, the rate on the 91-day bill went down by 70 basis points to 27.82%.

That of the 182-day bill however remained unchanged at 29.74%.

The 364-day bill dropped to 30.29% from the previous 30.89%.

Meanwhile, the government recorded 11.20% oversubscription over the ambitious target of GH¢6.26 billion

It accepted all the bids submitted worth GH¢6.97 billion.

About GH¢3.41 billion, representing 48.94% came from the 91-day bill. All the bids were accepted.

The 182-day bill also received bids worth GH¢1.813 billion with the uptake being the same.

About GH¢1.74 billion were tendered for the one-year bill. All the bids were accepted.

Guinness World Record attempt: Why Afua Asantewaa was disqualified

Stonebwoy steals spotlight at Island Music Conference in Jamaica

The Chief Executive of the National Petroleum Authority (NPA), Dr. Mustapha Abdul-Hamid, says Ghana’s fuel specifications, which are set at Sulphur content of 50 parts per million (ppm) in fuel is the cleanest in the West African sub-region.

Dr. Abdul-Hamid was speaking as a panelist on “Downstream Decarbonisation and Circularity – Going Full Circle” at the Egypt Energy Show in Cairo, Egypt.

He said that calls on government by civil society organizations and the public to adhere to the decarbonisation objectives and the protection of the environment caused the policy change in Ghana to reduce the Sulphur content in fuel to 50 ppm.

The NPA Chief Executive, who is also the President of the African Refiners and Distributors Association (ARDA), said Ghana is changing the LPG distribution model to improve clean cooking across the country. He said series of accidents at LPG refilling stations in the past, the need to improve upon the environment, prevent deforestation and improve upon the lives of rural women especially have made the new LPG distribution model called the Cylinder Recirculation Model (CRM) more imperative.

He emphasized that the CRM will enhance access to LPG, as exchange points are being constructed across the country.

He added that government’s LPG for Development Programme aims at achieving a 50 percent penetration of LPG in households across the country by 2030. Dr. Abdul-Hamid disclosed that government provides free LPG cylinders to poor households in rural areas under the programme.

He said people could not afford cylinders and Cookstoves in the first place, and that informed their reliance on wood fuels.

Besides, the NPA Boss said the government has ordered 100 electric-powered buses for the Metro Mass Transit Limited (MMT) as a way of showing an example in the energy transition agenda.

Dr. Abdul-Hamid also highlighted government’s policy for state institutions to be powered by solar. He indicated that an incentive has been given to private individuals who want to power their institutions and houses on solar.

Dr. Abdul-Hamid lauded the freedom of speech in Ghana which encourages civil society organizations and the general public to the agenda towards cleaner energy in the country.

Madam Justina Owusu-Banahene, the Bono Regional Minister, has appealed to Ghana’s development partners to assist in adding value to cashew fruits and nuts for job creation and poverty reduction.

She expressed regret that 889,000 metric tons of cashew fruits went to waste in the region annually due to the lack of processing plants to ensure value addition to the fruits and nuts.

Madam Owusu-Banahene made the appeal when Mrs Harriet Thompson, the British High Commissioner, interacted with heads of departments and agencies in Sunyani as part of her visit to the region to explore its economic potentials.

She said the region had about 74,000 acres of cashew plantation, which produced 88,900 beans annually, but the lack of processing facilities, disjointed value chain, price fluctuation, and poor farm management culture were impeding the sector’s growth.

Another key economic potential of the area was the poultry sector, which had more than 1,160 farmers, with a poultry stock of about 8,000,000.

However, the lack of a laboratory, high cost of poultry feed, drugs as well as price competition with imported products remained inimical to the growth of the industry.

Mrs Thompson said she was impressed by the economic prospects of the region, particularly the poultry sector, and pledged the UK’s commitment to boosting trade in Ghana through value addition.

The Bono Regional Director, Ministry of Food and Agriculture (MoFA), Dennis Amenga Abugri said the region’s farmer population was around 153,000, with only 107 extension officers, thereby contributing to challenges in technology dissemination.

It mostly cultivates maize, cassava, yam, plantain, cashew, cocoa, and mango as its major economic crops.

Mr Abugri said the impact of climate change was well felt and slowing down food productivity in the region.

ALSO READ:

Buduburam camp demolishing: Gomoa chiefs give squatters 3-day ultimatum

Sing-A-Thon: Afua Asantewaa fails in world record attempt

The Ghana Stock Exchange (GSE) has clarified the appointment of one Abena Amoah as co-chair of New Patriotic Party (NPP) flagbearer, Dr Mahamudu Bawumia’s Manifesto Committee is not its Managing Director.

The said Abena is to serve on the Committee on Economy.

However, GSE says its Director has not been contacted or offered any such appointment, nor has she discussed same, and therefore cannot be the said Abena Amoah.

“We wish to state categorically that the named Ms Abena Amoah on the list is not Ms Abena Amoah, Managing Director of the Ghana Stock Exchange. Our Ms Abena Amoah has not been approached or had any discussion or agreement on the subject matter with the Campaign Team,” portions of the disclaimer read.

GSE has further assured all market operators, issuers, stakeholders, and the public that the Ghana Stock Exchange and its leadership will continue to be apolitical.

“We remain focused on delivering on our mandate of providing a robust platform for raising capital and investment for economic prosperity to all Ghanaians and our international stakeholders,” it added.

Read the full statement below:

Tyler Perry has paused an $800m (£630m) expansion of his Atlanta studio complex after the release of OpenAI’s video generator Sora and warned that “a lot of jobs” in the film industry will be lost to artificial intelligence.

The US film and TV mogul said he was in the process of adding 12 sound stages to his studio but has halted those plans indefinitely after he saw demonstrations of Sora and its “shocking” capabilities.

“All of that is currently and indefinitely on hold because of Sora and what I’m seeing,” Perry said in an interview with the Hollywood Reporter.

“I had gotten word over the last year or so that this was coming, but I had no idea until I saw recently the demonstrations of what it’s able to do. It’s shocking to me.”

The AI tool was launched on 15 February – with limited access to a few researchers and video creators – and caused widespread astonishment with its ability to produce realistic footage a minute long from simple text prompts.

Perry, whose successes include the Madea film series, said Sora’s achievements meant he would no longer have to travel to locations or build a set: “I can sit in an office and do this with a computer, which is shocking to me.”

Demonstrations released by OpenAI, the developer of the groundbreaking ChatGPT chatbot, show photorealistic scenes in response to prompts such as asking for a shot of people walking through “beautiful, snowy Tokyo city” where “gorgeous sakura petals are flying through the wind along with snowflakes”.

Perry said the breakthroughs presented by Sora would affect a range of jobs throughout the film industry, including those of actors, editors, sound specialists and transportation crew.

He said: “I am very, very concerned that in the near future, a lot of jobs are going to be lost. I really, really feel that very strongly.”

Perry said an immediate example was the construction workers and contractors who would no longer work on his planned studio expansion because “there is no need to it”. He added that he used AI in two recently shot films in which the technology was used to age his face and help him avoid hours in the makeup chair.

Concerns over the impact of AI on jobs were a feature in recent strikes by Hollywood actors and writers, with the peace deals that ended those disputes both featuring guardrails on using the technology.

However, Perry told the Hollywood Reporter that a “whole industry” approach was still needed to save jobs.

“It can’t be one union fighting every contract every two or three years. I think that it has to be everybody, all involved in how do we protect the future of our industry because it is changing rapidly, right before our eyes,” he said.

MORE:

• I am shocked – Atta Akyea on Kyei-Mensah-Bonsu’s resignation

• Akyem Asene: Pupils stranded as contractor locks up school

• I have been depressed – Nunoo-Mensah

According to two sources from Ghana’s cocoa sector regulator, COCOBOD, the anticipated cocoa output for the 2023/24 season is likely to fall significantly short of expectations, with an estimated 40 per cent shortfall from the target of 820,000 metric tons.

Factors contributing to this decline include adverse weather conditions, smuggling activities, illegal gold mining, and the prevalence of swollen shoot disease.

Expressing concerns over the production shortfall, the first source informed Reuters that strong seasonal winds and insufficient rainfall have exacerbated the situation, with the current output forecasted to be about 500,000 tons for the season.

Addressing the challenges, the source noted, ‘Unfortunately, the cause of the decline could not be remedied immediately through human intervention.’

In the previous 2022/23 season, COCOBOD reported a loss of around 150,000 tons of cocoa due to smuggling and illegal gold mining, locally known as galamsey. Additionally, the regulator disclosed earlier this month that the cocoa swollen shoot virus had devastated approximately 500,000 hectares of cocoa farmlands.

Efforts to mitigate the production challenges are underway, according to the first source, who mentioned ongoing farm rehabilitation initiatives, the onset of the rainy season, and collaborative efforts with security agencies to curb smuggling activities.

Despite the current predicament, the second source remains optimistic about Ghana’s potential for production recovery. However, COCOBOD was not available for comment on the matter.

The decline in cocoa production from both Ghana and Cote d’Ivoire, coupled with increasing deficits, has propelled global cocoa prices to record highs.

Traders are experiencing heightened demand and pricing volatility, with London cocoa futures surpassing the psychological barrier of £5,000 and New York cocoa breaching the $6,000 mark.

The surge in cocoa prices is beginning to impact retail markets, with chocolate manufacturers such as Hershey anticipating a slowdown in consumer demand due to escalating costs.

Samuel Adimado, the president of Ghana’s cocoa buyers group, described the current production forecast as ‘shattering,’ noting that member firms are adapting their operations to remain viable in the face of these challenges.

Highlighting the concerning trend, the first source emphasised that rising global cocoa prices have incentivised smuggling activities, potentially leading to even higher losses in the current season.

RightCard Payment Services Limited trading as LemFi, has received approval from the Bank of Ghana to partner Nsano Limited to deliver money transfer services to mobile money wallets and bank account beneficiaries in Ghana.

This was contained in a press release dated February 23, 2024.

RightCard says the partnership is in line with the company’s “dedication to complying with the Bank of Ghana’s regulatory framework as well as reinforcing service efficiency through affiliation with proven partners.”

It also assured its customers of continuous delivery of quality service through instant money transfer, competitive exchange rate, and zero transaction fee offerings.

Press release below:

Ghana continues to grapple with price hikes as the year-on-year inflation rate for January 2024 sees a marginal rise.

It hits 23.5%, making it one of the Sub-Saharan African countries experiencing the highest inflation with its current rate being almost 3 times the combined rates of neighbouring Ivory Coast, Burkina and Togo.

Within the ECOWAS bloc, both Ghana and its economic counterpart, Nigeria, share inflation rates above 20%, with Nigeria’s nearing 30%.

In contrast, neighbouring countries like Ivory Coast, Togo and Burkina Faso boast single-digit inflation rates. Although Burkina Faso which is currently under military leadership has its current inflation rate pegged at 4.3% with Togo recording as low as 2%.

The 2023 AFCON winners, Ivory Coast also boast of a single-digit inflation with its most recent rate positioned at 3.1%.

It is noteworthy that Ghana’s inflation has not touched single digits for almost four years, with the last instance occurring in March during a lockdown. Despite receiving close to $2 billion from the IMF, World Bank and the African Development Bank within the past year and a half under the Extended Credit Facility Programme, Ghana is struggling to maintain healthy international reserves.

The country’s Gross International Reserves have plummeted from a historical peak of $11 billion, providing almost six months of import cover, to $5.9 billion as of January 2024, affording less than three months of import cover. This decline has intensified pressure on the local currency, the cedi, leading to its depreciation against major trading currencies such as the US dollar.

The exchange rate fluctuations impact import duties and other costs, contributing to the rising domestic prices of imported goods. Food inflation stands at 27.1%, persistently rising for four consecutive months and surpassing the overall inflation rate of 23.5%. Ongoing border restrictions in Niger, Mali, and Burkina Faso continue to impact the prices of essential farm produce like onions and tomatoes imported into Ghana.

Notably, key ingredients for common household meals, including jollof, banku and fufu have recorded inflation rates above 40% in January. With a substantial weight of 1.2 in determining national inflation, fresh tomatoes have surged by 52.3%. Other crucial ingredients like cassava, fish, carrots, and garden eggs have inflation rates twice the national average.

With the December 2024 general election approaching, Ghanaian voters prioritise key issues such as price stability, a resilient currency, and tackling unemployment. Addressing these concerns as the country faces economic headwinds has become paramount for the electorate.

The National Petroleum Authority (NPA) has described as incorrect statements by the Institute of Energy Security (IES) and the Chamber for Petroleum Consumers (COPEC) that the regulator  is “playing soft” with Sentua Oil Refinery Limited (SORL).

The NPA issued the statement in response to an IES and COPEC report, suggesting that the refinery supplied some specific fuel that did not meet the regulator’s specifications. The NPA has since revoked the approval for Sentuo Oil Refinery to supply the product.

According to the NPA, it has at all material times, enforced the rules and regulations governing the industry fairly and equitably.

“It is therefore incorrect for the IES and COPEC to allege that the NPA is “playing soft” with SORL “to the detriment of consumers and the state. Beyond the construction permit, the NPA, issued SORL with a test-run authorisation in October of 2023, based on a report by its technical teams and external inspectors. The test-run authorisation expires on the 31st of March 2024. It is therefore, incorrect for IES and COPEC to state that SORL has only a construction permit”, the statement said.

It clarified that a test-run permit allows a refinery to put products on the market based on the national standards.

“During NPA’s monitoring and verification exercise on the 16th of February 2024, the petrol consignment in question was noted to exhibit vapour pressure above the maximum requirement per the Ghana Standard for Petrol, GS 140:2022. The NPA immediately directed the suspension of sale of the consignment at the refinery and further directed the evacuation of the product from the affected stations”. 

Describing the allegations from the IES and COPEC, as incorrect and alarmist, the NPA denied allegations that the situation resulted in damaging motorists vehicles.

“No such damage to vehicles has occurred as the defect has to do with high vapour pressure”.

The NPA however said “beyond the remedial actions taken, sanctions have also been imposed on Sentuo Oil Refinery Limited.

“The NPA remains dedicated to ensuring the integrity and quality of petroleum products made available to the public. The NPA also wishes to assure the public that it enforces the rules without bias and in the interest of the consuming public”, the stamen ended.

ALSO READ:

Bawumia’s campaign team: Joyce Aryee should have declined invitation – Prof Gyampo [Video]

Multimedia Group commiserates with Oman FM and Kwabena Kwakye’s family

KPMG is set to deliver its audit findings on the transaction involving the Ghana Revenue Authority (GRA) and Strategic Mobilisation Ghana Ltd (SML) to President Akufo-Addo today, Friday, February 23.

Originally slated for submission on Tuesday, January 16, the deadline was extended to accommodate a request from KPMG, as confirmed by the President.

A statement signed by the Director of Communications at the presidency, Eugene Arhin, on Wednesday, January 24, said, “KPMG is to submit its final report no later than Friday, 23rd February 2024.”

The scrutiny intensified following an investigative piece by the Fourth Estate in December 2023, implicating SML, the GRA, and the Ministry of Finance.

The report alleged that the GRA had awarded SML a lucrative 10-year contract worth $100 million annually, raising suspicions of irregularities.

In response, SML refuted claims of a decade-long contract, asserting instead that it had secured a 5-year agreement.

The GRA, in a statement released on December 20, 2023, maintained that proper procedures were followed in engaging SML’s services.

However, on January 2, 2024, President Nana Addo Dankwa Akufo-Addo issued a directive instructing SML to halt its ongoing revenue assurance operations.

Additionally, he mandated an immediate audit of the contract with GRA and the Ministry of Finance, entrusting KPMG with the task.

In light of these developments, SML expressed confidence that the audit outcome would provide clarity and accuracy regarding its operations.

ALSO READ:

Multimedia Group commiserates with Oman FM and Kwabena Kwakye’s family

Overcrowding at Canadian Visa section: Applicants come with pastors, friends – IOM

Oti chiefs pledge support for new Minister

The Onion Sellers Association of Ghana has allayed concerns about a rise in onion prices because of Niger’s withdrawal from the Economic Community of West African States.

Onion prices have remained unchanged, despite concerns of a price increase and shortages.

In an exclusive interview with the Ghana News Agency (GNA), Mr Ali Umar, Public Relations Officer for the association, said that onions are still being sold at prior market prices at various sales outlets in Accra and throughout the country.

“We want to assure Ghanaians that there has not been any blockade in Niger to necessitate a price increment or shortage. Right now, everything is going smoothly, and all is well.

“We have enough onions to supply the country right now, so there is no problem. We are fully aware of Niger’s exit from ECOWAS, but it has not affected onion supply in any way,” he said. 

Niger, Mali, and Burkina Faso announced their withdrawal from the sub-regional body in a joint communiqué on January 28, 2024, citing several reasons, including the bloc’s abandonment of its fundamental objective and bowing to foreign powers.

Experts have warned of a potential food crisis in countries that rely on exports from the three countries.

Mr. Umar assured Ghanaians that onion prices will remain stable despite misleading allegations of an imminent blockade. ECOWAS initially sanctioned Niger in July of last year, causing a price increase in onions and other agricultural products imported from the country.

ALSO READ:

• Adjen Kotoku onion sellers send SOS to govt [Photos]

• Agbogbloshie onion sellers want a spiritualist to kill me – Minister cries

The government is working to ensure all its external data in other countries is hosted locally in Ghana.

This is to reduce cost of operations and promote growth in the digital space.

Minister for Communications and Digitalisation, Ursula Owusu Ekuful, made this disclosure to Joy Business after addressing a validation workshop on data centre and cloud regulations in Accra.

The validation workshop by Smart Africa and the National Information Technology Agency (NITA) is aimed at getting stakeholders’ input for the enhanced regulatory framework for cloud and data centres in Ghana.

According to the Minister, this framework will lead to promoting the country to become the preferred choice for hosting African data.

She believes that hosting a localised data centre will support job creation in the digital space.

“We need to have the regulatory system in place to ensure that whatever achievements we have in the digital space are fully secured. So this is very important to us. It’s absolutely essential that we provide the legal framework within which emerging technologies will operate so they don’t grow like weeds”.

“One key thing that we want to promote with this is the localisation of the data in our country. We produce that data, it must be stored here. We don’t have anything against the Amazon Cloud Services and the big operators. Let them build data centres here and host Africa’s data on the continent because it is expensive and we’re paying twice to host the data on other cloud services, pay for the management and pay for retrieval for our use, it doesn’t make sense” she added.

Director of Digital Infrastructure, Skills and Empowerment at Smart Africa, Thelma Efua Quaye, is optimistic that having a harmonised regulation system for data and cloud will boost investor confidence in the continent.

The government, she said, is therefore embarking on skills training for young entrepreneurs to take advantage of the growing digital space.

The National Petroleum Authority (NPA) has suspended the approval given to Chinese company, Sentuo Oil Refinery to sell some finished petroleum products on the market.

The action is specifically targeted at some finished petroleum products (petrol), with dispute of not meeting industry specifications.

According to the NPA, it took the action last week after its own investigations realised that Sentuo Oil Refinery ended up selling petrol slightly higher than what was originally approved.

The reaction by the NPA follows allegations by two energy think tanks, Institute of Energy Security (IES) and Chamber of Petroleum Consumers (COPEC) that the authority had allowed Sentuo Oil Refinery to sell sub-standard fuel to some Oil Marketing Companies, resulting in serious damage to engine of vehicles

Speaking to Joy Business, the Head of Quality Control at the NPA, Ubeidalah Saeed explained that the products did not meet the required standard and specifications.

He explained that the situation is not the case of unwholesome products but a case of the products not meeting the required specifications.

“This is not due to the fact that the products were unwholesome but rather, the pressure, is two points higher than maximum requirement”, he stressed.

He added that the situation was compounded by the fact that pressures are mixed at the OMCs and this sometimes delay in checking the specification.

 “…because products are co-mingle at the retail outlet at point, where the pressures were low at these services stations resulting in this challenge”, he said.

He assured that strict measures have been put in place to check the system to avert the situation where such products will hit the market.

“We have now reviewed the monitoring regime, and going forward, we will be counter testing all the quality certificate that will be sent to NPA from Sentou Oil refinery” he added.

Background

The IES and COPEC accused the Chinese firm for flooding the Ghanaian fuel market with unwholesome petroleum products in contravention of national fuel specifications, and all laid down regulations, licenses and permits pertaining to the country’s downstream petroleum market.

According to the two energy think tanks,  the out-of-specification products are reported to causing damage to vehicles and machinery with key oil marketing brands struggling to find ways to dislodge these products, with some compelled to shut down dispensing pumps, while the regulator – the National Petroleum Authrity (NPA) – looks on helpless.

In a statement, they called on the Special Prosecutor to investigate the activities of the Sentuo Oil Refinery leading up to unspecified and sub-standard petroleum products finding their way into the Ghanaian petroleum market.

“The IES and COPEC also call on the President [Akufo-Addo] to dedicate to the Tema Oil Refinery (TOR) the same time and energy as it is doing for Sentuo, even though it has not acquired all necessary permits and licenses to operate in the oil refinery and marketing space, resulting in out-of-specification products seeping into the Ghanaian market”.  

“Finally, the IES and COPEC wish to serve notice that they will not hesitate to equally drag the Ghana Standard Authority (GSA) and the National Petroleum Authority to the law courts in the coming days if the current menace is not immediately addressed”, they added.

They continued that these worrying developments by the Sentuo Oil Refinery in pumping sub-standard products onto the Ghanaian market, if left to continue could see a surge in malfunctioning engines, particularly in the Greater Accra, Ashanti, and the three Northern regions as a larger bulk of these bad products are believed to have been trucked to these regions.

“In line with the provision of the NPA Act 2005 (Act 691), the Licensing Department of NPA as part of its mandates is enjoined to issue permits and licenses to various Petroleum Service Providers (PSPs) that reflect the activities covered within a specified service area, and also to maintain a register on licenses and permits issued to various categories of PSP”s”, they mentioned.

“However, the IES and COPEC can confirm that aside from the construction permit granted the Chinese Sentuo Oil refinery, no other license has been issued to warrant Sentuo to commence oil processing, trading, and marketing; in clear contravention of established national laws and acts”, they alluded.

Again, they pointed out that “The Sentuo Oil Refinery as IES and COPEC have it today, has failed to collaborate with the Inspection and Monitoring Department of the NPA to acquire the necessary permits, and develop the necessary checklists for the inspection of the refinery facility, yet last month the President Nana Addo Dankwa Akufo-Addo joyously proceeded to commission the refinery, even as the state oil refinery is left in its ailing and distressed state”.

READ ALSO:

IT experts raise alarm over potential data breach in Bawumia’s ‘Tap and Go’ policy

Bid to oust Kyei-Mensah-Bonsu: Political science lecturer ‘exposes’ Afenyo Markin [Listen]

The Chief Executive Officer of the Ghana Cocoa Board (COCOBOD), Joseph Boahen Aidoo, says the GH¢2 billion loss to the Board in 2021 was because of the decline in the international market price of cocoa.

The price of cocoa on the global market had experienced a significant drop of over 30 per cent in recent years, which contributed to the substantial loss incurred.

Appearing before Parliament’s Public Accounts Committee (PAC) hearing on Wednesday, Mr Aidoo attributed the challenges to factors like smuggling and illegal mining (galamsey).

He indicated that plans were underway to address the challenges posed by the declining cocoa prices with the implementation of strategies to mitigate further losses.

“Mr Chairman, we are on the path of a turnaround. COCOBOD’s financial situation is dictated by the international market price, that’s the world cocoa price, and we all know that from 2017 to the date in question, the price of cocoa in the world market has collapsed by 30 per cent. And in 2020 that is also when we had our highest production.”

“So when prices collapsed at the time when we had increased yield, the direct cost and inventory go up whereas the revenue generated goes down,” he said.

“…That is what explains the huge deficit for the particular year. Essentially yes we had record production, the prices at the international market did not favour us.”

Mr Murtala Mohammed, a Member of PAC, however called for Mr Boahen Aidoo’s resignation over the decline in cocoa production.

The National Democratic Congress Member of Parliament for Tamale Central further criticised Mr Aidoo for his alleged inability to address the decline in cocoa production and falling short of the projected targets.

“Mr Chairman, failure to resolve the issues should prompt his resignation,” Mr Mohammed said.

The PAC began its public hearing on Monday, January 29, 2024 to consider a report of the Auditor-General on the Public Accounts of the Ministries, Departments and Agencies (MDAs) for the year ended December 31, 2022.

It would also evaluate a report of the Auditor-General on the Public Accounts of Ghana – Public, Boards, Corporations and other statutory institutions for the period.

PAC is expected to bring its proceedings to an end on Friday, February 23, 2024.

ALSO READ:

Akufo-Addo calls for 30% withdrawal of Ghana’s assets deposited abroad

Obiri Boahen breaks silence on Bawumia’s campaign team snub

The Deputy Minister of Finance, Dr. John Kumah, has revealed that government got GH¢1.19 billion in revenue from the E-levy in 2023.

Addressing concerns over Ghana’s unemployment crisis, which saw over a million youth without jobs according to the latest Ghana Statistical Service data, he announced the allocation of these funds towards combating unemployment.

Specifically, he said investments were channeled into programs like YouStart, the Ghana Enterprise Agency (GEA), and the National Entrepreneurship and Innovation Programme (NEIP).

Speaking at the Wealth and Jobs Expo Ghana’s media launch, Dr. Kumah emphasized the government’s dedication to job creation by attracting investments into the country.

“The Ghana Statistical Service on Wednesday announced that about 1.5 million Ghanaian youth are unemployed. Last year, E-levy generated GH¢1.19 billion and as part of dealing with the job situation… unemployment situation, government has committed funds through YouStart from this E-levy sources…to GEA and NEIP to address the unemployment situation in the country, and I am happy to announce that institutions like Wealth and Jobs Expo and all private groups that are willing to help create jobs in the private sector will also be supported to help create jobs and businesses in the private sector,” he said.

“In the medium term, government aims to intensify efforts to attract domestic investments and FDIs [Foreign Direct Investments] in strategic centres with emphasis on creating jobs anchored on government’s growth strategy. The strategy is projected to contribute to creation of approximately 500,000 jobs. We are not saying 1.5 million [unemployed youth], every one of them should create jobs. No. Even if we get it, we get 10% of them, it’s 150,000 who will become entrepreneurs. If they do an average of let’s say 100 jobs….150,000 x 100, you have almost solved the unemployment problem,” the Deputy Minister of Finance added.

READ ALSO:

Family exhumes corpse, holds vigil for 5 days to bring her..

Ghanaian man killed in random shooting incident in Canada

Bawumia would have never been flagbearer if… – Dr. Amakye Boateng

The Bank of Ghana has signed a Memorandum of Understanding (MoU) with the Development Bank Ghana (DBG) to commission a study on “Innovative Financing for Micro, Small and Medium Enterprises (MSMEs) in Ghana”.

According to the Central Bank, credit is critical for every economy, particularly developing economies such as Ghana, since both theory and empirical literature point to the nexus between credit and economic growth.

Speaking at the ceremony, First Deputy Governor, Dr. Maxwell Opoku-Afari, said though price stability remains the Central Bank’s primary mandate under the inflation targeting framework, economic growth through credit expansion is also of key concern, a reason why a major consideration is given to the impact of policies on the real sector.

For instance, he explained that much of the reforms that have been initiated within the banking sector in particular, have been geared towards creating sound, stable, well-capitalised and profitable institutions capable of supporting the real sector and economic growth through increased lending.

He pointed out that “we are excited to be part of today’s landmark event, which is yet another bold initiative between the Bank of Ghana and two critical institutions in our country, the Development Bank Ghana (DBG) and the University of Ghana Business School (UGBS) to formally commission this study on “Innovative Financing for MSMEs in Ghana”.

He continued that the expectation of the study will promote understanding of and also provide anecdotal evidence on the financing challenges that MSMEs face in Ghana, the funding gap that currently exists, and also recommend new and innovative ways of closing this funding gap.

Results from the study will inform the regulator, on other ways in which financial technology firms can be used to channel resources from surplus-spending units to deficit-spending units in the economy, especially MSMEs.

Dr. Opoku-Afari assured the Bank of Ghana’s project team commitment to this collaboration with DBG and “We believe the success of this collaboration would encourage other collaborations aimed at addressing the challenges that face the financial sector in particular and the economy as a whole”.

“The Bank of Ghana also commits to observing the MoU in utmost good faith to ensure the study is successful. The Bank stands ready to support in any other way to ensure the project’s objectives are attained at the end of the day”, he concluded.

ALSO READ:

Akufo-Addo calls for 30% withdrawal of Ghana’s assets deposited abroad

• GFA responds to ‘Fix Ghana Football’ petition
• Burning Issues: I don’t think it’s genuine – Prof Gyampo on…

Details emerging from the contract between Strategic Mobilisation Ghana Limited (SML) and the Ghana Revenue Authority (GRA) have revealed positive outcomes for the country’s revenue.

Since the revenue assurance contract was signed in December 2019, operations commenced in June 2020 after a one-month pilot period, resulting in a noticeable increase in revenue.

According to documents obtained by Adomonline.com from the Ghana Revenue Authority, revenue has surged by GH¢12,981,376,688.00.

This significant rise in revenue suggests that the contract has been beneficial for the country’s financial interests.

However, amidst these developments, SML has taken legal action against the media outlet responsible for releasing “The GH¢3bn Lie Documentary.”

In a lawsuit filed on Thursday, February 15, SML claims that the publication has caused irreparable damage to its reputation in the public domain, leading to negative consequences for its operations.

Consequently, SML is seeking compensation totaling ¢10 million. This includes one million for defamation and nine million for exemplary damages, citing reckless and malicious reporting.

“Plaintiff says that the onslaught of backlash from the public which has arisen from the Defendants’ false reportage has adversely impacted Plaintiff’s operations.”

“Plaintiff says that although it published rejoinders to the Defendants’ false reportage, the Defendants have failed and/or refused to retract and apologise to the plaintiff for the false information they have consistently peddled.”

Furthermore, they are requesting a perpetual injunction against the publication of further defamatory material, a retraction and apology, and any other orders deemed appropriate by the High Court.

The Fourth Estate, in a December 2023 investigative report, implicated Strategic Mobilisation Ghana Limited (SML), the Ghana Revenue Authority (GRA), and the Ministry of Finance.

The report alleged that GRA granted SML a purported 10-year contract with an annual payment of $100 million, raising concerns about possible irregularities.

SML refuted the claim, asserting that it had a five-year contract instead.

The GRA, in a statement on December 20, 2023, maintained that the proper procurement procedures were followed.

On January 3, 2024, SML welcomed President Akufo-Addo’s directive to suspend its ongoing revenue assurance operations and undergo an audit of its contract with the GRA and the Ministry of Finance.

President Akufo-Addo appointed KPMG, an audit, tax, and advisory services firm, to conduct the immediate audit.

SML expressed confidence that the audit would provide a clear and accurate depiction of its operations.

However, President Akufo-Addo extended the limit given to audit firm KPMG, to complete its audit following its request.

Following the extension, KPMG is expected to submit its report on Friday, February 23.

About the deal

The revenue collection and administration body contracted SML to perform revenue audits and assurance control measures in the petroleum downstream sector.

ALSO READ:

• SML sues Fourth Estate, Manasseh Awuni

• I’ll cancel SML contract if NDC comes to power – Mahama

The Chamber of Petroleum Consumers (COPEC) and the Institute for Energy Security (IES) have called on the National Petroleum Authority (NPA) as a matter of urgency shut down the operations of Chinese Sentuo Oil Refinery.

Also, they have called on the Special Prosecutor to investigate the activities of the refinery which President Nana Akufo-Addo commissioned in January.

In a joint statement, COPEC and IES alleged the refinery is operating without the appropriate permit from the NPA and also supplying substandard.

“These worrying developments by the Sentuo Oil Refinery in pumping sub-standard products unto the Ghanaian market, if left to continue could see a surge in malfunctioning engines, particularly in the Greater Accra, Ashanti, and the three Northern regions as a larger bulk of these bad products are believed to have been trucked to these regions,” the statement read in parts.

Meanwhile, they have threatened to take legal action against the Ghana Standards Authority and NPA if the situation is not addressed.

ALSO READ:

• COPEC sends important message to NPA over Sentuo Refinery

• Akufo-Addo announces plans to revive TOR at inauguration of Chinese-owned refinery

Read the full statement below: