Thursday, February 29

Ghana

Ghana-Currency
  • In April, Ghana’s inflation eased for the fourth month in a row to 41.2%. In December the West African country’s inflation hit a record 54.1%.
  • With the depreciating local currency against the US dollar, imports have become increasingly out of reach for millions of citizens.
  • In early May, the IMF wired $3 billion to the Central Bank of Ghana to cushion is fast waning forex reserves.

The Central Bank of Ghana has maintained key interest rate at 29.5 percent to help tackle high inflation plaguing the West African Country. The fiscal policy regulator notes that the tight monetary stance and stabilising currency rates are playing a significant role in its decision. 

Central Bank of Ghana tackling inflation

Ghana, well known for its cocoa, gold, and oil, has suffered immensely, with recent fiscal measures causing high inflation rates. According to statistics, the West African nation is facing the worst economic crisis

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Ghana 1
  • Ghana, a top gold and cocoa exporter rich in oil and gas deposits, is struggling with a $55 billion debt burden.
  • About 70 percent to 100 percent of the government revenue currently goes toward servicing the country’s debt.
  • It is estimated that Ghana’s debt-to-GDP will reach 98.7 percent by the end of 2023.

Crisis-saddled Ghana is seeing about $15 billion in external debt relief by 2026, the International Monetary Fund has said even as the country pursues debt restructuring plan with investors. In December 2022, Ghana suspended payments on most of its foreign debts effectively defaulting as policymakers started restructuring plans as part of a bailout deal with the IMF.

Initial plan was an agreement to suspend service payments of its Eurobonds, commercial loans and most bilateral loans. Further, as an interim emergency measure, the government moved to engage its external creditors in what it thought was best in making …

Ghanaian Cedi depreciation

Ghana finds itself in the classic emerging market trap. This comes from owing too much in someone else’s currency when the global economic tide turns. One ought not to read too much into an emerging economy getting creative with money or to confuse the confiscation of private assets with a more conventional process of fiscal retrenchment that would gain IMF approval. If the plan succeeds, Ghana may have saved itself from an economic meltdown, especially in a period widely considered as economic turmoil, per the World Bank’s analysis of the 2023 economy.…

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Ghana hosts largest agricultural exhibition. www.theexchange.africa

Thomas James, Agritech West Africa’s project director, said that the rising demand for food and the targeted food growth in Ghana and West Africa requires innovation and mechanization in agriculture patterns. This could be done by adopting new and modern agriculture technologies, machines, crop care practices, irrigation, warehousing and storage facilities.

Ghana has invested heavily in mechanisation in agriculture, importing Tractors, Spares, Implements, Agrochemicals and Irrigation setups worth US$1 billion. Annually, Ghana imports over 10,000 tractors and their associated implements and parts.

The seminars, pre-fixed meetings and conferences in the exhibition will help Ghanaian and West African agriculture-based companies an opportunity to network with manufacturers and suppliers from across the globe.…

Abena Andoh-Mensah, a Metallurgist at Abosso Goldfields Limited (Damang Mine). www.theexchange.africa

The company has managed to make a strong comeback from when it faced an existential threat when prices of commodities slowed down in 2014. Prior to that period, mining company shares were hot because of China’s urbanization. It drove prices of commodities through the roof taking the shares of resource companies with them.

When China’s economic growth slowed down the miners also felt the pinch. The pinch was felt especially at Gold Fields which had to restructure its business and retrench at least 1,300 workers mainly from Ghana to ensure the long term sustainability of the company. The restructuring produced desirable results characterized by net cash inflow of US$ 235 million. In that same year, its Australian operations produced 1 million ounces of gold.

The company’s operations are massive and span 3 continents.…

Dr. Zanetor Agyeman – Rawlings. She says there still are many challenges of global governance and gender. www.theexchange.africa

The Vienna World Conference on Human Rights in 1993 was forced to address women’s rights as a human rights issues because of the violence and sexual abuse against women occurring in Yugoslavia at the time.

The Fourth International Women’s Conference was held in Beijing in 1995 made human rights and women’s participation in decision making at all levels key. One of the recommendations was for the countries to have gender desks in the Ministries, Departments and Agencies including Security Services. It cautioned against the specific establishment of Women’s Ministries as these would take gender issues to the periphery as that ministry would be saddled with all matters gender-related.

The conference also discussed the eradication of poverty, women in armed conflict and violence against women. …

The Kumasi Market makeover after completion of phase one. Deutsche Bank has organised financing for phase two of the market. www.theexchange.africa

West Africa’s largest market, the huge Kumasi Market in Ghana has more than 12,000 shops and stalls and with the traffic it receives, upgrades are inevitable.

Up to 800,000 people visit the Kumasi Market in Ghana, which neighbours Benin and Togo, each day.

There have been numerous fires in the area because of its size and unplanned development, which has caused the destruction of many stalls and the loss of jobs.

To avoid this, the Deutsche Bank together with the UK Export Finance Agency and the African Export-Import Bank have signed a financing agreement for the second phase of the Kumasi Market reconstruction project.…

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