Author: Amanda Cartey

Minister of State at the Ministry of Energy, Herbert Krapa, has announced the government’s intention to promptly rejuvenate the laboratories at the Tema Oil Refinery (TOR) to bolster its revenue-generating capabilities.

He shared this update with journalists on July 23 during his inaugural official visit to TOR, aimed at familiarizing himself with the refinery’s operations since taking on his new role.

Krapa emphasized the importance of collective effort in revitalizing TOR’s operations.

“TOR is a strategic national asset and urgently needs a strategic partner to get back on its feet,” he noted.

The Minister of State highlighted that, with proper upgrades and equipment, the refinery’s laboratories have the potential to offer advanced and innovative services. These improvements could enhance the refinery’s reputation and significantly increase its revenue.

“The government is giving this its utmost urgent attention,” Krapa stressed.

The Minister of State was joined by top representatives from the Ministry of Energy and the National Petroleum Authority (NPA), who oversee the downstream petroleum sector.

He conferred with Kofi Mocumbi Tagoe, the Managing Director of TOR, and his executive team to receive updates on the company’s status and discuss the government’s viewpoint in preparation for a comprehensive tour of the facility, including its laboratories.

Established on December 12, 1960, as the Ghanaian Italian Petroleum (GHAIP) Company, Tema Oil Refinery (TOR) is Ghana’s leading crude oil processing plant. Initially owned by Italians, the Ghanaian government assumed full ownership in April 1977, and the refinery was renamed TOR in 1991.

President of the Ghana Hotels Association, Dr. Edward Ackah-Nyamike Jnr, stated that while the government is seeing positive results with some economic indicators like inflation, these do not benefit businesses.

During an interview with Evans Mensah on Joy News’ PM Express, he explained that the current economic conditions are diminishing business profits.

Despite the sustainability claims made by the Finance Minister during the Mid-year budget review in Parliament on Tuesday, he said the situation on the ground tells a different story. “there is a mismatch between what is happening on the macro level and the ground.”

“Even when you try to get those macro figures right, we are still dealing with variables like the exchange rate because a lot of our hotels import several kinds of stuff as they are not available here.

“You have to deal with import duty, exchange rate and the cost of borrowing and other factors. When you compare this and what is being said about the bigger picture, there is a mismatch.”

Edward Ackah-Nyamike Jnr explained that the Association had a wish list of expectations, hoping that the Finance Minister’s presentation in Parliament on Tuesday would tackle key concerns within the sector. However, these expectations were not met.

“His presentation has come with a mixed bag of excitement and disappointment,” Mr. Ackah-Nyamike Jnr said on Tuesday.

“At the macro level, the debt restructuring, expanding the tax net through the invoice system, and plans to upgrade some roads are positive steps.”

He acknowledged signs of stabilisation, noting the upward adjustment of real GDP.

“These are signs that things are stabilising; however, when it comes to the real deal, which is how we face the economy, that is where we have challenges,” he added.

According to Dr. Joseph Obeng, president of the Ghana Union of Traders’ Association (GUTA), the cost of doing business remains elevated due to the multitude of taxes.

For him, “the status quo remains the same, especially with taxes. Even though new taxes were not announced, we still have to contend with the taxes we pay, and that is impacting negatively on our business.”

Regarding the exchange rate’s “seeming stability, we plead that whatever measures they put in place to stem the high rise of the dollar should still be adopted so that we can sustain this gain.”

Economist Dr. Theo Acheampong recognizes the government’s evident dedication in the Mid-year budget review to reduce expenditures, shaped by the International Monetary Fund (IMF) program.

“Were the IMF not around in any other year, especially with the election around the corner, government would have been spending and this is a positive development,” he stated.

Dr. Acheampong emphasized the relative stabilization in the macroeconomic landscape, observing various signs that suggest ongoing recovery.

Nonetheless, he stressed the importance of addressing micro-level concerns, such as the cost of living, for this recovery to be meaningful.

During his appearance on Joy News’ PM Express on Tuesday, he noted that both the Mid-year budget and the upcoming November budget are designed to steer the economy towards growth.

“There’s talk about roads and potentially bringing back even road tolls, then there’s a big emphasis on housing and a few other things on trying to collect a little bit more revenue,” he said.

“But I think overall, the story for me is relatively positive. And compared to other supplementary budgets or mid-year budgets, where the government normally comes to ask for more money, this time around, they’re not asking for more money and spending is within the parameters that had been set.”

Last month, the IMF’s executive board sanctioned the second assessment of Ghana’s $3 billion loan agreement, leading to the immediate release of approximately $360 million.

This approval came after Ghana reached an agreement with its official creditor committee, a necessary step for accessing the second tranche.

With this new disbursement, the total IMF funds released under the three-year bailout plan intended to address Ghana’s severe economic crisis now amount to $1.56 billion.

In a statement, the IMF acknowledged that Ghana’s performance under the programme has been largely robust.

“The authorities’ strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities is paying off, with clear signs of stabilisation emerging,” said IMF Deputy Managing Director Kenji Okamu.

King Charles III received the Asantehene, Otumfuo Osei Tutu III, at Sandringham House in the UK on Tuesday.

Otumfuo Osei Tutu II is presently in the UK for his Silver Jubilee festivities.

This marks the first meeting between the Asantehene Otumfuo Osei Tutu II and the King of England since King Charles III’s coronation in March 2023.

The visit coincides with the Asantehene’s presence in the United Kingdom (UK) for a lecture at the British Museum, among other engagements.

The visit occurred at King Charles’ Sandringham estate, which spans 20,000 acres within the Norfolk Coast Area of Outstanding Natural Beauty.

On August 4, 2024, the Asantehene will celebrate his 25th Anniversary on the Golden Stool by hosting the sixth Akwasidae Festival of the year in London.

As part of his working visit to the UK, he held talks with the Victoria and Albert Museum, delivered a lecture at the British Museum and celebrated the Awukudae festival there.

The Asantehene left Ghana on Saturday, July 13, 2024.

In preparation for the upcoming parliamentary nominations, the New Patriotic Party (NPP) has formed a nine-member committee to ensure all candidates meet the necessary Electoral Commission (EC) requirements.

This initiative is part of the party’s efforts to uphold high standards and ensure a seamless and compliant filing process.

The committee consists of the following members:

Mr. Frank Davies (Chairman), Mr. Gary Nimako, Madam Sophia Korkor, Madam Nana Adjoa Adobea Asante, Hon. O. B. Amoah, Hon. Ben Abdallah, Madam Joyce Opoku Boateng, Mr. Evans Nimako and Mr. Michael Kwadwo Nketiah

The committee is tasked with verifying all documents submitted by candidates, ensuring compliance with the EC’s regulations, and compiling comprehensive reports on each candidate’s compliance status.

Additionally, the committee will communicate with candidates to resolve any issues identified during the screening process.

The committee’s work begins immediately, starting today, Tuesday, July 23, 2024.

General Secretary Justin Kodua Frimpong expressed confidence in the committee members’ diligence, emphasizing that only the most qualified and compliant candidates will be selected.

“We trust that the members of this committee will execute their duties with diligence, ensuring that our party fields only the most qualified and compliant candidates,” Frimpong stated.

The NPP values the dedication and cooperation of its members during this essential vetting process as they prepare for the upcoming elections.

The Jamestown Fishing Harbour has been completed on time, with operations set to start before the end of the year. Funded by a 50-million-dollar grant from the Chinese government, the harbour was built over four years.

Covering 60,000 square meters, the new facility is equipped with state-of-the-art features, including an ice-making plant with a daily production capacity of 60 tons, a cold store with a 200-ton fish capacity, two workshops, a fish market with space for 200 vendors per day, additional stalls, an administrative building, and a crèche for children.

Before the official handover and commissioning later this year, the Ghana Ports and Harbours Authority (GPHA) leadership, including Director General Michael Achagwe Luguje, visited the site to review the completed work.

Pleased with the results, Director Luguje expressed confidence that GPHA will leverage its expertise in managing fishing ports for this new facility. He also encouraged the fishing community to collaborate with GPHA to ensure the harbour is well-maintained for the benefit of all Ghanaians.

“Naturally, the fishing ports themselves by nature are not huge income-generating facilities and will continue to be expensive to maintain, but we have to add that as part of our collective GPHA responsibility. We see the fishing harbours more as welfare projects that are supposed to at least enhance the community and livelihoods, so that is the angle we are looking at. We have that responsibility to make sure that they are efficiently managed. Definitely, users of the facility will use them at a fee. They will make some contribution towards covering the operating cost. We can only just be grateful to the government and, of course, to the Chinese government for this partnership that has led to this facility,” he said.

The General Manager of Engineering at GPHA, Ing. Komla Ofori, provided Eye on Port with additional details about the facility’s features and benefits.

“Approximately 4,000 people will work here on a daily basis, making the site quite crowded. We have used the site optimally to get the best facilities in this small space. I believe that even the land facilities far exceed what the sea can bring, so if you’re expecting canoes bringing fish here, the volume of fish that will come in here will not be enough for the land facilities that we have. Ice, for example, may have to be sold to people on land who may need ice for other things or fish brought from elsewhere for storage, depending on what the situation will be,” he said.

In 2019, the Ghanaian government, through the Ministry of Transport and the Ministry of Fisheries and Aquaculture Development, initiated the construction and upgrade of fishing harbours and landing sites in twelve coastal towns across Ghana.

These towns include Axim, Dixcove, Moree, Mumford, Winneba, Senya Breku, Gomoa Fete, Ekumfi, Elmina, Teshie, Jamestown, and Keta.

The aim of these projects is to ensure a sanitary environment for fish processing and handling while reducing and managing post-harvest losses for local fishermen.

The Ghana Ports and Harbours Authority is overseeing the development of these twelve fishing ports and landing sites, fulfilling its role as the national body responsible for the construction, management, and operation of all ports and related infrastructure in Ghana.

Ghana is looking to restrict certain cocoa purchases for the upcoming season, indicating that the severe shortages affecting the market and driving futures prices to unprecedented levels might not be resolved soon.

In a communication to buyers this week, the world’s second-largest cocoa producer announced that it will decide the amount of the next crop that can be sold as specialty cocoa based on overall production. The regulator will distribute the beans “fairly” among buyers. Specialty cocoa beans include those with certifications like Fairtrade, UTZ, and Rainforest Alliance, as well as traceable beans.

This decision to limit some purchases suggests concerns that Ghana’s next cocoa crop may not rebound as much as anticipated by some market observers, despite favorable weather conditions and timely access to pesticides and fertilizers. Cocoa futures in New York set multiple records this year but have since fallen by more than 30% after reaching their peak in April.

“Volumes to be traded as specialty during the 2024-25 cocoa year will be determined as a percentage of total production and allocated equitably” to registered buyers, Emmanuel A. Opoku, deputy chief executive responsible for operation at the Ghana Cocoa Board, said in the letter dated July 16 and seen by Bloomberg.

A representative from the Ghana Cocoa Board did not respond to phone calls or a text message requesting comments.

Ghana has been forced to delay the delivery of at least 250,000 metric tons of cocoa to the 2024-25 season, which begins in October, due to a drop in production. Both Ghana and its neighboring country, Ivory Coast— the largest global producer— have been struggling with the spread of swollen shoot disease.

Despite these challenges, Ivory Coast anticipates its 2024-25 harvest will recover to 2 million tons, up from an estimated 1.8 million tons for the current season. Conversely, Ghana projects an increase in production to 700,000 tons from approximately 425,000 tons.

The Ghana Cocoa Board is now asking buyers interested in specialty cocoa for the next season to submit details including off-take agreements, shipment plans, and specific information on the quantity and type of specialty beans they intend to purchase, as outlined in the letter.

The regulator, known as Cocobod, “will provide the approved tonnage for specialty cocoa for each” registered buyer “after the submission of their projections for the season,” Opoku said.

A student reputed to be the wealthiest at the University of Ghana has offered a look into her “luxurious” campus room.

The young woman, residing in Pent Hall, considered the residence for the elite, conducted a tour of her room, displaying her bed, wardrobe, shoes, and various decorative items.

She mentioned that the room was originally designed for two occupants, but she paid extra to have it to herself.

In response, some social media users have expressed doubt about her claims of coming from a wealthy background.

Watch video below:

The Ghana Revenue Authority (GRA) has announced that it is nearing the completion of processes to bring approximately two million potential informal sector taxpayers into the tax system.

At a media briefing in Accra, Mr. Edward Gyambrah, Commissioner of the Domestic Tax Revenue Division of the GRA, stated that advanced plans are in place to launch the Modified Taxation System, aiming to incorporate about two million small and medium taxpayers from the informal sector.

“This system will capture everyone who earns income in the country, and we envision roping-in about two million before end of year. We’ve been working on it over the last three months and its roll-out is scheduled for August this year,” he said.

The informal sector is often elusive in tax mobilization, with tax evasion and avoidance being widespread.

Despite the rapid growth of the informal economy, GRA data indicate a consistent decline in tax collection from this sector in recent years.

For example, the Vehicle Income Tax, a major contributor from the informal sector, decreased from 8.3 percent in 2017 to 7.3 percent in 2020; similarly, the Tax Stamp contribution fell from 1.4 percent to 1.3 percent over the same period.

Tax experts find this decline alarming, given that the informal sector makes up more than 85 percent of the national workforce.

Good Governance Africa estimates that Ghana’s informal sector accounts for about 35.6 percent of the economy, roughly equivalent to US$66 billion at GDP purchasing power parity.

Discussing the sector’s potential, Mr. Gyambrah mentioned that the Modified Taxation System will aid the GRA in expanding the current tax base.

In fact, the GRA has surpassed its target by registering over 600 taxpayers in the Large Taxpayer Office into the Commissioner-General’s invoicing system.

Mr. Gyambrah noted that the Authority has onboarded 614 taxpayers so far and is prepared to implement additional key strategies, including the Modified Taxation System.

“These are key strategies that will be replicated in implementing the modified system to increase collection and enable us to meet the GH¢146billion tax target for the 2024 revenue year,” he said.