Category: Business

The Institute of Economic Affairs (IEA) Ghana says the Electricity Company of Ghana (ECG) needs expert managers to tackle the inefficiencies in the Company’s operations.

Whilst the Institute maintained that ECG should remain state-owned, it stressed that the new crop of managers should be drawn from wherever applicable, both locally and internationally, with appointment devoid of political party affiliation and rather based on competence.

It noted that curtailing the country’s periodic power outages required a holistic approach, which must include dealing with the legacy debt, reducing the industry-high distribution losses, improving bill collections, stemming illegal connections and moving to legitimate cost-recovery tariffs.

Dr John K. Kwakye, Director of Research, IEA Ghana, said this at a press briefing on Wednesday to present the Institute’s reflections on the State of the Nation Address (SONA) delivered by President Akufo-Addo on February 27, as well as the Monetary Policy Committee (MPC) Decision de
livered on March 25 by the Governor of the Bank of Ghana.

In his message during the SONA, President Akufo-Addo touted the Government’s success in ending the intermittent power outages called ‘Dumsor’ locally and managing ‘to keep the lights on in the last seven years’.

Whilst IEA acknowledged that power had been much more stable in the last seven years than the four years earlier, it also noted that the subsequent stability benefited from previous investments in the power sector.

‘What we also know is that the stable power has been achieved at considerable budgetary cost some of which emanated from previous contractual agreements,’ Dr Kwakye added.

The Director of Research highlighted some areas of interest, which were not captured in the SONA – corruption and illegal mining, popularly known as ‘Galamsey’.

Dr Kwakye said both local and international corruption reports showed that no significant progress had been made by the country in tackling the canker in the past 30 years.

He proposed that if the Off
ice of the Special Prosecutor could be successful in fighting corruption, it would be important to re-enact its Act and remove it completely from the influence of the Executive, with regard to appointment, prosecution of cases, and funding.

Touching on ‘galamsey’, Dr Kwakye noted that even though the government had implemented a number of strategies and invested quite an amount of capital in dealing with the menace, limited success had been achieved so far.

He added: ‘This appears to be due to the existence of strong vested interests in the business, involving well-placed individuals and groups.

‘It would take concerted efforts in regulation, community engagement and a strong sanctions regime to bring the menace under control and avoid its potentially disastrous consequences.’

Other areas in the SONA that IEA Ghana reflected on were Peace and Security, Projects, Taxes, Debt, Macroeconomy, Social Protection, Free Senior High School, Planting for Food and Jobs, and Minerals.

Source: Ghana News Agency

Mr Kobina Tahir Hammond, Minister of Trade and Industry, has called for flexibility in trade policies to facilitate Africa’s industrialisation agenda and make the continent benefit fully from the multilateral trading system.

He made this call during a meeting with Ms Rebecca Grynspan, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), in Geneva as part of a working visit.

He noted that the African Continental Free Trade Area (AfCFTA) would provide the continent with a good starting point for removing trade-related bottlenecks and ensuring that export volumes and values are increased on the continent.

Mr Hammond called for close collaboration and consensus among African governments to build trust on key issues such as agriculture, which he said could facilitate value-addition and increase the continent’s exports.

The Minister also called for enhanced efforts to position the continent to attract a significant amount of trade-related investment that would enable it to take
advantage of global value chains.

In Ghana, President Nana Addo Dankwa Akufo-Addo was ensuring the transition of the country from a ‘Guggisberg- raw material based’ economy to one of value addition, he said.

To achieve this, the government, through initiatives like the One District-One Factory (1D1F) initiative and the establishment of strategic anchor industries was spearheading Ghana’s advancement of industrialisation agenda, Mr Hammond said.

In her remarks, Ms Grysnpan, Secretary-General, UNCTAD, called for support for the global-south to be fully integrated into the multilateral trading system through capacity-building initiatives.

She also emphasised the need to work together to achieve multilateral agreements that support the development, with special and differential treatment being accorded to the most vulnerable.

Ms Grysnpan called for equitable financial regulations and investment regimes to support global trade rules to deliver development for all.

Source: Ghana News Agency

African countries are predicted to dominate the world’s top 10 highest-growing economies in 2024, a report on Recent Economic and Social Developments in Africa by the Economic Commission for Africa (ECA) has said.

The report said the most notable growth drivers in Africa in 2024 would be Niger, Senegal, Ivory Coast, DRC and Rwanda.

Adam Elhiraika, the Director of the Macroeconomics and Governance Division at ECA, said Africa was the fastest-growing region after East and South Asia in the developing world in 2023, and it would continue this trend in 2024 and 2025.

The report shared with the Ghana News Agency showed that Niger and Senegal were expected to experience significant economic growth due to the increase in hydrocarbon production and exports.

It said growth in Niger would also be fueled by the revival of agriculture and a rise in crude oil production, which would have a beneficial impact on the transportation sector.

However, recent military coups together with sanctions from regional blocs, had d
isrupted economic activities leading to significant social costs.

The report said the growth in Senegal would be driven by rising private and infrastructure projects.

However, in the electioneering year where residents in up to 15 African nations would be participating in elections, including the recently concluded presidential elections in Senegal, the country’s short-term growth and development could be adversely impacted.

‘In Ivory Coast, DRC and Rwanda, the robust expansion in these nations is attributed to an increase in infrastructure investment, continuous development in tourism, good performance of the mining industry, and advantages of economic diversification,’ Mr Elhiraika said.

Growth in the DRC, it said, would be fueled by the extractive sector due to the opening of new oilfields, agriculture, services, and mining, in accordance with the national strategy to boost social and investment expenditures.

Rwanda’s growth would be fueled by private consumption and investment, while Ivory Coast’s gr
owth was driven by increased investment stemming from pro-competitive market reforms and business environment improvements in the National Development Plan, alongside private consumption influenced by decreasing inflation, it said.

The report further showed that the continent was expected to grow from 2.8 per cent in 2023 to 3.5 per cent in 2024 and reach a percentage of 4.1 in 2025, which was mainly underpinned by net exports, private consumption and gross fixed investment.

It said presently, Africa’s economic growth remains unstable and lower than potential, and the rate required for achieving the Sustainable Development Goals (SDGs) and Agenda 2063 target, necessitating that major fiscal and monetary policy shifts as well as increased efforts must introduced to address internal and external balances, inflation and debt issues.

In 2023, the report said, the global economy showed resilience with declining energy and food prices, increased consumption in China, and improved US economic growth.

Still, the
outlook remained uncertain, with high debt, rising borrowing costs, weak global trade, and mounting geopolitical risks, constraining progress towards the SDGs and Agenda 2063 targets.

Mr Elhiraika said the region faced threats of tighter monetary and fiscal conditions and notable debt sustainability risks, adding that the ongoing climate catastrophes and extreme weather occurrences would continue to negatively impact agriculture and tourism, while geopolitical instability would likewise affect certain sub-regions in Africa.

Again, trade in Africa continued to face headwinds reflected in net capital outflows and subdued export revenues, with intra-African trade remaining relatively low.

Africa’s total exports were largely concentrated on extractive commodities, which had kept the region trapped at low points along critical value chains, the report showed.

Social development trends in Africa were concerning, with rising poverty, inequality and unemployment exacerbating the continent’s challenges to achieve
the SDGs.

The ECA report noted that the capacity of African countries to effectively tackle poverty and inequality was severely constrained by the low poverty-reducing effect of economic growth.

Some key recommendations in the report included a call to revitalise trade in Africa to reduce trade costs in Africa.

The implementation of the African Continental Free Trade Area (AfCFTA) was vital to boost trade, eliminate barriers, and promote other trade liberating strategies.

It said to achieve the Sustainable Development Goals (SDGs), it is necessary to mobilise more domestic resources and introduce innovative finance mechanisms through capacity building, institutional strengthening, and promotion of (tax) reforms; use digital technology; introduce environmental taxation; implement innovative finance mechanisms, such as debt swaps.

Again, with the increasing number of countries in or at risk of debt distress, sustainable debt relief and restructuring measures are required.

Countries should implement struct
ural reforms to help revive growth, bolster resilience and enhance the effectiveness of fiscal and monetary policies to contain inflation.

It further recommended that African countries capitalise on the current global shifts, including the transition towards renewable energy and the revitalised significance of critical minerals.

Source: Ghana News Agency

Mrs Gloria Cabutey-Adodoadji, the Sector Head, of SME and Retail Banking at Zenith Bank, has urged businesswomen to leverage the golden opportunities of the African Continental Free Trade Area (AfCFTA) agreement to expand their reach and grow their businesses and ensure their products meet export standards.

‘With the arrangement, a free trade zone encompassing 54 nations with a combined GDP of US$3.4 trillion and a market of 1.3 billion people, offers a superhighway for Ghanaian businesswomen to expand their reach,’ she said.

Mrs Cabutey-Adodoadji was speaking at the maiden edition of the Women in Business Dialogue series organised by the Business and Financial Times and held in Accra.

To leverage the AfCFTA, however, she urged businesswomen to ensure their products meet export standards, form partnerships to reduce costs, and seek guidance, all of which Zenith Bank ranks high in the industry for facilitating.

She explained that while women take advantage of the AfCFTA and the many opportunities availab
le to them, it is also important for women to be technologically inclined to enable them to reach a wider audience through online sales and marketing channels.

‘As you leverage on the benefits of AfCFTA, it is imperative for businesswomen to also leverage on technology. Technology empowers women entrepreneurs by providing them with the tools needed to sell online, manage finances, and keep track of business activities,’ she added.

Financial literacy

Mrs Cabutey-Adodoadji said it was also essential for women entrepreneurs to have proper

bookkeeping practices and maintain separate business and personal transactions which she said was key to securing funding from banks.

‘Businesses with viable products and strong revenue streams are more likely to get loans from Banks. With proper bookkeeping practices, Banks are more willing to offer various solutions to help women entrepreneurs grow their businesses,’ she said.

She highlighted Zenith Bank’s business solutions, including discounted onboarding packages, tr
aining programmes, and financial products tailored to the needs of SMEs, adding that the bank also encourages entrepreneurs to focus on product viability and have a clear expansion plan.

Support

Zenith Bank’s SME account, she said, was a prime example of a product which offers support for women’s businesses.

She said the account offered women entrepreneurs training, mentorship, and resources to help them navigate the challenges of formalization and growth.

Also, the Zenith SME Business Card, which is a must-have for all women entrepreneurs, along with the SME account, equips women with tools that would enable them to manage finances, access working capital, and earn rewards.

Additionally, she elaborated on the Bank’s Z-Woman service which is a unique lifestyle service dedicated to increasing financial inclusion, improving entrepreneurial skills, and enhancing the lifestyle of every woman.

She said as a Z-Woman, women who own or lead businesses are provided with loans, overdrafts, working capital online
and mobile banking applications, budgeting tools and workshops to build financial literacy.

Only recently, Zenith Bank entered a strategic risk-sharing partnership with the African Guarantee Fund to provide access to funding for Micro, Small and Medium Enterprises here in Ghana with a particular focus on women-owned/led businesses as well as green businesses.

With these initiatives, Zenith Bank continues to reaffirm its commitment to empowering women-owned and women-led businesses in Ghana for business growth success.

Source: Ghana News Agency

Access Bank Ghana Plc, a leading retail bank in Ghana, has recorded a profit before tax of more than GHS1 billion in 2023 – a historic feat for the Bank.

The Bank’s profit before tax for 2023 was GHS 1.037bn, compared with the GHS 440.6 million in 2022.

After paying some GHS419.3m in taxes, the Bank recorded a profit after tax of GHS618.4m, compared to the profit after tax of GHS 338.1m in 2022, where the bank paid GHS102.4m in taxes.

‘The Bank recorded an outstanding increase in profit before tax compared to the previous year, surpassing GHS1 billion for the first time in its history,’ it said in a press release copied to the Ghana News Agency.

‘This remarkable achievement reflects Access Bank Ghana’s unwavering commitment to excellence and its ability to navigate through challenging economic landscapes,’ it further stated.

For the year ending 2023, Access Bank’s total operating revenue reached GHS1.613 billion from GHS1.150 for the same period in 2022, which represents a 40 per cent growth.

The Bank’s
Total Assets grew from GHS10.057 billion in the previous year to GHS12.304 billion in 2023, reinforcing the Bank’s financial stability and capacity to support various sectors of the Ghanaian economy.

Meanwhile, total equity and liabilities also increased from GHS9,043,018 in 2022 to 10,901,525 in 2023.

Reflecting on the performance, Mr Olumide Olatunji, Managing Director, Access Bank Ghana, credited the success to the enduring trust and confidence bestowed upon the bank by its valued customers and stakeholders.

He underscored the Bank’s strategic focus on diversification, innovation, and dedicated customer service to meet evolving customer needs while maintaining a disciplined approach to expansion and business operations.

Mr Olatunji reiterated Access Bank’s dedication to excellence in both retail and wholesale banking sectors.

He highlighted strategic initiatives, including credit card offerings, Small and Medium-sized Enterprise (SME) financing, and the establishment of strategic desks for priority se
gments, such as French and Lebanese desks, all poised to be instrumental in advancing Access Bank’s strategic growth agenda.

Those endeavours, he said, were strategically aligned to reinforce Access Bank’s position as the Most Respected Bank in Ghana.

Ms Akosua Biama Aboagye, Chief Finance Officer, Access Bank Ghana, noted that the results align closely with the bank’s long-term strategic growth objectives.

She stated that the Bank’s remarkable financial performance in 2023 underscored its resilience, agility, and unwavering commitment to driving economic growth and fostering financial inclusion in Ghana.

She emphasised the Bank’s ongoing investments in key operational areas to enhance efficiency, service quality, and sustainable value creation for shareholders and stakeholders alike.

Operating through an extensive network of 55 branches nationwide, Access Bank Ghana serves diverse customer segments across more than 10 regions with innovative and flexible banking solutions.

The Bank has earned many reco
gnitions, including accolades of the Best Bank from the Euromoney Awards and Global Finance Awards – reaffirming its position as a leading advocate for SMEs and a trailblazer in sustainable finance.

Source: Ghana News Agency

Founder and Chief Executive Officer, QuantizedFT, Kwabena Boateng, is to launch Tech Hub and Youth Training programme in Tema.

The launch set for today, April 3, is a pioneering initiative to propel Ghana’s tech landscape forward.

A release issued to the Ghana News Agency said the Tech Innovation Hub would provide invaluable resources, mentorship, and global connectivity essential for success in the digital age.

‘Serving as a catalyst for innovation and economic growth, the hub offers Ghanaians opportunities to excel in the ever-evolving tech industry.’

Mr Boateng said, ‘innovation and the tech ecosystem is moving quickly, and it is our duty to ensure that every Ghanaian, regardless of background, has the opportunity to contribute to and benefit from the technological advancements shaping our future.’

He said in line with its mission to empower Ghana’s youth, the hub will host a special training program.

It also aims to equip Ghanaian youth with essential tech skills, preparing them for future challenge
s and opportunities.

Source: Ghana News Agency

Mr Patrick Boakye-Yiadom, the Member of Parliament (MP) for Obuasi East has donated GHC100,000.00 to victims of the recent fire which razed down parts of the Boete Timber Market.

Properties running into millions of Cedis were lost in the inferno with hundreds of traders and artisans losing their investments.

The MP, who was accompanied by the District Chief Executive (DCE), Madam Faustina Amissah, was at the market to commiserate with the victims and assure them of plans to relieve the impact of the disaster on their businesses.

He said the Boete Market remained the biggest timber market in the Adansi enclave, serving adjoining districts as the hub for wood and timber products.

‘I cannot replace everything for them but the little support that we can do for them to erect their structures again, repair the machines that can be repaired, and also buy some working tools and wood is what we are here for,’ he told the media after engaging the fire victims.

He encouraged them not to allow the disaster to discou
rage them from picking up the pieces and bouncing back in business, adding that, his office and the District Assembly were ready to support them in every step of the way.

Madam Amissah shared the pain of the victims and announced plans by the Assembly to roll out measures to forestall future occurrences.

She said a new timber market was currently under construction and that a prototype of the structures had been constructed by the Assembly pending approval from the consultants and the leadership of the timber market.

‘Looking at how congested the current place is. The new site is very spacious and can accommodate everyone here and also those who want to join them later,’ she assured.

She said putting up a new market for them would not only enhance their businesses but also boost revenue generation for the Assembly.

Mr Kwaku Asamoah Orlando, the Chairman of the occupants of the market who received the donation on behalf of the victims, applauded the MP and the DCE for their timely response, which would cu
shion the victims in the interim as they figured out how to rebuild their businesses.

Source: Ghana News Agency

Mr. Francis Asenso-Boakye, the Minister for Roads and Highways, has cut the sod for work to begin a 120-kilometer asphaltic overlay of the Sunyani to Berekum and Sampa road in the Bono Region.

The road works, with a budget of $125 million, is to be executed under a fixed-term contract and scheduled for completion within 24 months.

The scope of work for this 120-kilometer road project included the construction of drainage structures, the laying of a 150mm thick crushed rock base material, the application of a 50mm thick asphalt binder course, the application of a 40mm thick asphalt wearing course, and the installation of road signs and road line markings.

Mr. Asenso-Boakye, at a sod cutting ceremony at Jinijini in the Berekum West District as part of his Regional tour to inspect roads, emphasized that the project was a crucial step towards fulfilling the aspirations of the people in the region.

He emphasized that the objectives of implementing programmes for the construction, rehabilitation, and maintenanc
e of major critical roads throughout the country were being successfully realized for safe, and reliable road network in facilitating the movement of people and contributing to continuous economic growth.

Mr. Asenso-Boakye observed that infrastructure served as the foundation for development and played a crucial role in the nation’s path towards economic prosperity and social well-being.

He said the project served as a vital link connecting Berekum to the border town of Sampa, through key cashew-growing towns such as Jinijini, Japekrom, Drobo, Dwenem, Seketia, and Suma Ahenkro.

Mr. Asenso-Boakye said the completion of the project would improve access to markets, healthcare and education and also facilitate trade with neighboring country, La Cote d’Ivoire.

Osabarima Kyere Yeboah Darteh II, Nsapohene and acting president of the Berekum Traditional Council, expressed appreciation for the road infrastructure investment made by the New Patriotic Party (NPP) government in the area.

He called for measures to be
implemented to ensure the construction of durable roads that would last longer thereby preventing the need for reinvestment in already built roads to save government funds and again contribute to the long-term development and sustainability of the country’s road network.

The minister also inspected some roads and drainage systems in Odumase, located in the Sunyani West Municipality and also assessed the road network in the Wenchi Municipality.

Source: Ghana News Agency

Ghana is keeping pace with the rapid global transition to digital technologies, including in the realm of e-government where the country is regarded as a leader in Africa.

Ghana received high scores on the 2022 United Nations E-Participation Index, which assesses the extent to which governments use online platforms and technologies to involve citizens in decision-making processes and policy development.

The 2022 World Bank GovTech Maturity Index also finds Ghana outperforming regional peers.

Digital service delivery is strengthening governance and providing efficiencies for the public and private sectors.

Ghana’s Business Regulatory Reform unit (BRR), established in 2017 within the Ministry of Trade and Industry, provides a strong example.

Under the Ghana Economic Transformation Project (GETP) and with technical assistance from the ACP-Business Friendly Program funded by the EU, the World Bank is supporting the BRR in boosting increased citizen engagement through e-portals.

Technology tools are ensuring
that the private sector is aware of regulations, allowing the BRR to better engage companies in the regulatory process and identify regulatory bottlenecks.

Three examples stand out:

Business Regulations E-Registry

After its inception, the BRR quickly adopted ICT tools to serve its constituents.

One of the most significant developments is the launch of an e-registry in 2020, which allows users to access and download regulations relevant to the business environment. The e-registry includes user-friendly features like keyword searchability and filters to locate relevant regulations.

The e-registry not only streamlines the process for companies to establish and operate legally but also strengthens their adherence to legal regulations.

Consultation Platform on Draft Laws and Regulatory Proposals

BRR’s commitment to promoting regulatory transparency through technology-enabled services extends to participatory governance.

The Public Consultation Portal enables civil society to access draft laws while BRR off
icials review feedback, including comments and poll results.

For example, the MSME (Micro, Small and Medium Enterprises) Classification Regulation (2021) garnered over 1,000 views and received valuable suggestions.

A notable one is to use employment numbers to categorise firms (e.g., micro, small, medium, and large).

This criterion was incorporated in the final regulation adopted by Parliament.

An online ‘suggestion box’

The BRR seeks to engage citizens and firms through the ‘Have Your Say’ platform that allows companies to voice complaints on regulatory bottlenecks and suggest improvements.

Users can submit their recommendations for review by BRR personnel.

This feature, inspired by the Singapore’s Pro-Enterprise Panel suggestion window, aims to identify and address procedural bottlenecks and implementation gaps on regulatory reform implementation.

The feedback platform, still in the initial stages of implementation, promises to provide an efficient means of reaching officials to improve business con
ditions.

Looking ahead: Is Ghana a new regulatory service model for Africa?

The BRR is committed to sharing knowledge with peers across the continent.

In March 2023, with support provided under the ACP Business Friendly Program funding by the European Union, BRR representatives introduced digital solutions and lessons learned to a delegation from Madagascar.

Following this exchange, the country is now looking to implement similar tools to better engage its private sector in the regulatory reform process.

While e-service tools are starting to make their mark in Ghana, the BRR continuously seeks to enhance its digital services.

Improvements include building awareness about these online solutions and strengthening constituents’ trust in these tools.

As countries on the continent strive for sustainable growth, enhancing service delivery efficiency and involving the private sector and citizens in governance are crucial steps.

Developing targeted technology solutions will help African nations leverage gover
nance improvements and operational efficiencies, and thereby better support their populations and foster development.

The next time you think of getting access to business-related regulations in Ghana, kindly visit www.brr.gov.gh for help.

Source: Ghana News Agency