Author: lwadmin

Accra: Fitch Solutions, an international rating agency, says Ghana’s disinflationary trends could be hampered by geopolitical concerns and stalled foreign debt restructuring,

In a report detailing Ghana’s inflation and interest dynamics, the rating agency noted that an increase in geopolitical tensions could disrupt global trade, causing further increases in global commodity prices.

The rating agency stated that because Ghana was a net importer of both fuel and food, such an increase would raise the cost of imports and undermine the disinflationary process.

Ghana’s disinflation rate has been drifting downward, with the Ghana Statistical Service reporting 52.2 percent in December 2022, compared to 23.2 percent in the same month in 2023.

The Bank of Ghana (BOG) stated that the disinflation process will continue, with headline inflation predicted to fall from 13 to 17 per cent by the end of 2024 before gradually returning to the medium-term target range of 6-10 per cent by 2025.

Fitch Solutions also warned
that negotiations between Ghana and its commercial creditors could stall and take longer than expected.

Ghana’s external debt restructuring with government creditors is complete; however, negotiations with commercial creditors are still ongoing.

According to the rating agency, this would delay IMF payouts and erode investor confidence, culminating in a Cedi sell-off and a resumption of inflation.

The agency said that in both scenarios, the Bank of Ghana (BoG) would embark on a more conservative monetary easing cycle than we currently forecast.

Source: Ghana News Agency

Accra: The Ghana Union of Traders Association (GUTA) has declared that it will sign a social contract with political leaders vying for the presidency in 2025. This agreement would be based on their economic policies and manifesto commitments.

Dr. Joseph Obeng, President of the Association, indicated that the decision was made to ensure that the business community and Ghanaians hold the next president accountable for his words.

‘We will subject the policies and promises of political parties and individual aspirants to a credibility litmus test and hold them accountable. We will, therefore, sign a Memorandum of Understanding (MoU) with them ahead of the 2024 elections,’ he said.

Dr Obeng was speaking to the Ghana News Agency in Accra on Wednesday, February 8, following the delivery of the vision of Dr Mahamudu Bawumia, presidential candidate for the New Patriotic Party (NPP).

He said that they had seen some indications of candidates beginning to listen to and align with the requirements of the business comm
unity in their visions.

He stated that their observation was based on their participation at the National Economic Summit hosted by the leader of the Movement for Change, Mr Alan John Kwadwo Kyerematen, as well as Dr Bawumia’s outline of his vision for Ghana.

‘We want the politicians to know that this year’s election is not going to be business as usual. We will critically assess their policies to see how it will be helpful to businesses, particularly, Small and Medium-sized Enterprises (SMEs)’ he said.

Dr. Obeng added that the business sector was interested in policies which, when implemented, would support business growth while contributing to revenue generation through taxation and job creation for the youth.

He encouraged all political parties, and their leaders, as well as individual aspirants to extensively engage the association and incorporate their needs in the drafting of their manifestoes.

Dr. Bawumia, in articulating his vision for the country, said that he would repeal the Electronic Transac
tions Levy (E-levy), Emission Tax, and the 15% Value Added Tax on electricity if he becomes president.

He talked about creating a flat tax for individuals and SMEs, simplifying the corporate tax system, and implementing a VAT regime to make tax payments easier and more business-friendly.

Dr. Obeng spoke on tax regimes, saying that when applied successfully, the flat tax ‘will prevent under declaration and under invoicing and make the government get the right taxes.’

He did, however, encourage the Vice President to use his position to influence the implementation of the specified policies, stating that ‘some of the solutions can be implemented in the shortest time possible.’

Source: Ghana News Agency

Accra: Vice President Mahamudu Bawumia, the Flagbearer of the New Patriotic Party, has laid out a comprehensive vision for the mining sector, which would help to effectively regulate the industry, especially small-scale miners and protect the environment.

Speaking to the nation in Accra on Wednesday to unveil his vision for Ghana, Dr Bawumia said about one million Ghanaians were engaged in small-scale mining, hence the need to transform those miners to practice responsible mining, create more wealth, and protect the environment.

‘About one million people are engaged in small scale mining. Our goal would be to help small scale mining companies to grow into large scale companies with capacity building and skills to access financing to acquire equipment.

‘We can create many millionaires in the small-scale mining industry if we support them,’ Dr Bawumia said.

‘My government will support the Minerals Commission and key stakeholders to formalise the Artisanal and Small-Scale Gold Mining (ASGM) sector with the o
bjective of ensuring that the activities of the entire value chain are sustainably and responsibly done.’

That would ensure that most of the gold produced by this sector could be sold to the Bank of Ghana (BoG) and be eligible to be part of the gold reserves of the Central Bank, the NPP Flagbearer said.

In line with that, he said his government ‘would license all miners doing responsible mining. District mining committees, including chiefs, will provide initial temporary licenses to the miners.’

‘As long as miners mine within the limits of their licenses, there will be no mining in river or water bodies, there will no longer be any seizure or burning of excavators.’

‘I will fully decentralise the Minerals Commission as well as Environmental Protection Agency (EPA) and ensure that they are present in all mining districts.’

Dr Bawumia said under his government, every Ghanaian in small-scale mining would be registered under the Ghana Small Scale Miners Association with their Ghanacard.

‘We will, in collabo
ration with the large mining companies, convert abandoned shafts into community mining schemes and open more new community mining schemes.’

Other initiatives include a pension scheme for small-scale miners similar to what pertains in the cocoa sector for cocoa farmers.

He intends to introduce vocational and skills training on sustainable mining for small-scale miners in the curriculum of TVET institutions.

He would provide equipment to government authorities in mining communities to undertake reclamation of land, set up state of the art common user gold processing units in mining districts, in collaboration with the private sector, and conduct an audit of all concessions with various licenses.

‘To encourage exploration, a Bawumia-governement will abolish the VAT on exploration services (like assaying) to encourage more exploration.’

‘We will establish, in collaboration with the private sector, a Minerals Development Bank to support the mining industry.’

‘We will establish (through the private sector) a
London Bullion Market Association (LBMA) certified gold refinery in Ghana within four years.’

‘All responsibly mined small scale gold produced would be sold to the Central Bank, Precious Minerals Marketing Company (PMMC) and Minerals Income Investment Fund (MIIF), which would be required to be refined before export.’

The event was on the theme: ‘Ghana’s Next Chapter: Selfless Leadership and Bold Solutions for the Future,’ which enabled the NPP Flagbearer for the December Election, to outline his vision and direction for the nation.

Mrs Rebecca Akufo-Addo, the First Lady, Wife of the Vice President Hajia Samira Bawumia, former President John Agyekum Kufuor, former Speaker of Parliament, Professor Mike Aaron Oquaye, and Mrs Osei Frema-Opare, the Chief of Staff were in attendance.

The others include the National Chairman of the NPP, Stephen Ayensu Ntim, Mr Justin Kodua Frempong, General Secretary of the Party, former presidential aspirants, ministers of State, members of Parliament, Party Executives, Council
of Elders of the Party, and the diplomatic community.

The Kofi Ohene Konadu Auditorium of the University of Professional Studies, Accra (UPSA) where the forum was held, was filled to capacity with enthusiastic party supporters and sympathizers having to find space outside the auditorium.

Source: Ghana News Agency