The ongoing attempts to stop the chronic devaluation of the cedi against the major trading currencies, according to Finance Minister Ken Ofori-Atta, will soon start to bear fruit.
He claims that the Bank of Ghana has taken some action to address the issue affecting the cost of living in the nation.
On September 28, Ken Ofori-Atta provided an overview of the steps being taken to stop the devaluation of the cedi, including a Special Foreign Exchange Auction for bulk distribution businesses and a Gold Purchase Program.
“As part of measures to shore up our reserves, improve exchange rate stability and address some of the funding needs, the Ministry successfully worked on a US$750 million Afreximbank loan facility which was received in August 2022,” he explained.
“The traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help us build our FX reserves and provide a strong buffer for the cedi in the last quarter of the year,” Ken Ofori-Atta added.
The local currency has since the start of this year significantly lost its value against major trading currencies, especially the US dollar.
The cedi is currently selling at around GH¢10.00 to the US dollar on the forex market – a situation which has impacted the currency’s performance and resulted in a high cost of living.
Demand for forex has also overtaken supplies during a period when high debts and low investor confidence have made it impossible for Ghana to access the international capital market for borrowing.
As at July this year, the cedi lost its value by more than 20 percent to the US dollar.
In addition, recent economic downgrades by international rating agencies such as Fitch and Standards & Poors’ has also impacted the investor community at large, while Ghana awaits an IMF support programme which is expected to be accessed in 2023.
Ken Ofori-Atta, the minister of finance, has stated that the anticipated Cocoa Syndication Loan will support the nation’s foreign exchange reserves and address the sharp depreciation of the Ghana cedi.
On September 28, 2022, the minister said at a press conference that the $750 Afrexim Bank loan the nation obtained in August is also one of the steps the government is taking to combat depreciation.
He said: “The Ministry successfully worked on a US$750 million Afreximbank loan facility which was granted in August 2022. This was done as part of measures to shore up our reserves, promote exchange rate stability, and meet some of the funding needs.
“The traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help us build our FX reserves and provide a strong buffer for the cedi in the last quarter of the year,” he stated.
The Loan is, however, expected to be signed by September 30, 2022.
Meanwhile, the Minister noted that the Ghana cedi has depreciated by about 31.7% against the US dollar as of September 27, 2022.
The cedi is currently selling at GH¢10.50 to a dollar at some forex bureaus in the country.
The government is sure that by the end of the year, the country will have reached an agreement with the International Monetary Fund (IMF) that will assist stabilize the economy and alleviate citizens of their current financial burdens.
Last Tuesday in Accra, the Minister of Finance, Ken Ofori-Atta, stated that President Nana Addo Dankwa Akufo-Addo expected to meet the December deadline and that his administration was working to make that happen.
Addressing some bank executives and the media at an event to sign an agreement between selected financial institutions and the government for the YouStart programme, Mr Ofori-Atta said the President wanted the negotiations to be concluded and a deal secured before the 2023 Budget was laid before Parliament.
He said the timeline was to enable the government to incorporate the expected IMF programmes into the 2023 Budget for onward implementation from next year.
Next year’s budget is due to be presented by November 15.
Crunch time
Speaking about the government’s commitment to revive the economy, Mr Ofori-Atta said now was a crunch time for the government as it raced against time to secure a deal from the IMF.
“As you know, the President wants this thing to be done before the budget and the budget should be done by November 15. So, it is really a crunch time now,” the Finance Minister.
He said a team from the fund was expected in the country from September 26 to 27 for the second round of negotiations after which the discussions will continue in Washington D.C. during this year’s Annual General Meeting of the World Bank and the IMF from October 10 to 16.
The minister said although Zambia took three years to conclude negotiations for its programme, which was announced this September, Ghana was optimistic that it could seal a deal by December.
Ghana opened discussions with the IMF for a programme in July.
No murmurings
Mr Ofori-Atta said, “I think we are determined to do that (secure a deal by December) and we need, as a nation, to move beyond the murmurings and to understand that we can do that.
“It is quite encouraging but also shameful when you hear the IMF Managing Director, Kristalina Georgieva, saying after meeting the President that we are determined to reach an agreement by the end of the year yet when you listen to our radio, you wonder whether we are friends or enemies of our own country,” he said.
He, however, said that enthusiasm was needed to pull the country out of the current challenges to build a stronger economy that can meet the growing needs of individuals and businesses.
Entrepreneurial instincts
Turning his attention to the YouStart, the Finance Minister said the initiative was the outcome of lessons learned from the covid-19 pandemic.
“Fundamentally, we had to adopt this approach because the pandemic taught us we must re-orient our approach towards structural transformation and react with a clear plan to ‘reap the benefits of our population dividend by building an entrepreneurial state,” he said
“This focus on building our young people’s skills and entrepreneurial ‘instincts’ is an informed one,” Mr Ofori-Atta said.
Joblessness
Mr Ofori-Atta said data showed that about 50 per cent of local employers reported misalignment of or inadequacy of skills in the market, with Mckinsey also reporting that at least 50 per cent of new tertiary institution entrants enrolled in programmes in sectors with little or no growth in the labour market.
He said the Ghana Statistical Service (GSS) also suggested that the unemployment rate for those aged 15 to 35 was 19.7 per cent.
“Even for those who are perceived to be working, 50 per cent of them are classified as under-employed.
“These statistics underscore the dire need to resolve this spectre of youth unemployment across our communities.
“Inevitably, this leads us to today’s event, where the Government of Ghana, represented by the Ministry of Finance, will sign an agreement with the Ghana Association of Bankers (GAB) and 13 leading banks for the YouStart Commercial Programme.
“Never in our history has there been a commitment of this size and scale,” he said.
Benefits
Mr Ofori-Atta was optimistic that the programme would help to strengthen the links between education and job market stakeholders, provide access to finance, skills and markets for young entrepreneurs and grow the capacity of the private sector to create jobs.
“Undoubtedly, we all are responsible for ensuring that YouStart becomes the primary vehicle for creating a million jobs over the next three years,” the minister said.
Turning point
The Chief Executive Officer of the GAB, Mr John Awuah, said the signing ceremony marked a turning point for the YouStart financing model.
He said the banks and the government had worked tirelessly to put the programme together and expressed the hope that the implementation would be smooth.
Ken Ofori-Atta, Ghana’s minister of finance, has revealed that as of September 27, 2022, the Ghana cedi had lost 37.1 percent of its value against the US dollar.
Since the beginning of this year, the local currency has experienced a dramatic decline in value versus the major trading currencies, particularly the US dollar.
A high cost of living has come from the cedi’s poor performance in the retail market and forex bureaus, where it is now trading at roughly GH10.50 to the US dollar.
However, Ken Ofori-Atta told reporters at a news conference that the Bank of Ghana has implemented some improved steps to combat the depreciation of the cedi.
“Some of these measures entail a Special Foreign exchange auction for bulk distribution companies and a Gold Purchase Programme to contain the depreciation of the cedi, which is now slowing down,” the Finance Minister said.
At the start of 2022, demand for forex overtook supplies during a period when high debts and low investor confidence have made it impossible for Ghana to access the international capital market for borrowing.
The situation has resulted in the persistent depreciation of the Cedi against the major trading currencies.
As at July this year, the cedi lost its value by more 20 percent to the US dollar.
In addition, recent economic downgrades by international rating agencies such as Fitch and Standards & Poors’ has also impacted the investor community at large, while Ghana awaits an IMF support programme which is expected to be accessed in 2023.
Ken Ofori-Atta, Ghana’s finance minister, has detailed a number of pillars that will depend on Ghana’s potential IMF economic support program.
Official negotiations between Ghana and representatives of the Fund are now taking place in Accra, Ghana.
Once an agreement is struck, the nation hopes to receive $3 billion from the Bretton Woods institution.
In a news conference where he gave an update on the talks, Ken Ofori-Atta said, “Our economic agenda contains a series of time-bound structural reforms and fiscal consolidation measures to place our debt levels and fiscal accounts on a sustainable course over the medium term.”
“The programme is hinged on seven (7) pillars, namely: i. Debt Sustainability; ii. Fiscal Consolidation; iii. Strengthening Monetary and Exchange Rate Policies iv. Building Strong Financial Institutions; v. Macro-Critical Structural Reforms; vi. Maintaining Peace and Security; and vii. Economic Growth and Transformation.”
The Finance Minister however disclosed that government is finalizing its post-COVID-19 economic programme as the domestic blueprint to engage the IMF.
“This document has already benefitted from input from key stakeholders including Civil Society Organizations (CSOs), social partners (Labour unions, employers, and FBOs), academia, industry professionals, and the leadership of Parliament. Additional stakeholder engagements will be held to solicit further inputs for the programme,” Ken Ofori-Atta said.
The potential IMF programme seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability underpinned by key structural reforms and social protection.
Meanwhile, a five-member committee has been established to lead the extensive stakeholder engagement which will take place from September 26 to October 7, 2022.
Due to this, the ongoing negotiations, which are anticipated to last from September 26 to October 7, 2022, have received some updates from Finance Minister Ken Ofori-Atta.
On September 28, Ken Ofori-Atta announced a 5-member committee will oversee the comprehensive stakeholder engagement while speaking to journalists at a news conference in Accra.
He said that the talks are going well and that they will go for 10 days.
He added that the discussions would be made in order to safeguard Ghana’s financial sector.
Meanwhile, a key prerequisite for an IMF programme will require a comprehensive Debt Sustainability Analysis (DSA).
Government says it is putting together a comprehensive post-COVID-19 economic programme which will form the basis for the IMF negotiations.
The potential IMF programme seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability underpinned by key structural reforms and social protection.
The Ministry of Finance is shedding light on the current state of Ghana’s economy.
Finance Minister Ken Ofori-Atta is moderating the press conference underway.
The government of Ghana is seeking assistance from the International Monetary Fund (IMF) to address the economic crisis facing the country.
An IMF team arrived in the country on Monday to continue its engagement with the government, being represented by the Finance Ministry, Bank of Ghana and the Vice President, Dr Mahamudu Bawumia, the head of the economic management team.
A former Member of Parliament for Mampong, Francis Addai-Nimoh has advised Akufo-Addo to replace finance minister Ken Ofori-Atta with former Member of Parliament for New Juabeng South, Dr Mark Assibey-Yeboah.
According to him, Ken Ofori-Atta has been in the same position for too long and needs to be replaced.
He suggested that Ken Ofori-Atta should be taken to the Ministry of Health or Foreign Ministry.
“A reshuffle of the finance minister would have been ideal but the backstops with the president.
“Of course, I would have reshuffled him to another ministry like Health or Foreign Affairs and replace him with people like Assibey-Yeboah. Assibey-Yeboah is no more an MP and Ofori-Atta is also not an MP,” he said New Day show on TV3 Tuesday September 27.
Meanwhile, Akufo-Addo has insisted he is currently impressed with the work of his appointees hence there will not be a reshuffle anytime soon.
He explained that his ministers’ outputs have been considerable and outstanding and that is what he looks out for in his appointees.
“Many of them for me have done outstanding work. Their output has been considerable, and that is what I look at.
“If the output measures expectations, then I don’t have any strong reasons to heed the call,” he said.
The Ministry of Finance and the Bank of Ghana have commenced discussions with the International Monetary Fund (IMF) for the second time for an IMF-supported programme.
The government is also expected to begin negotiations with the IMF this week which will last for about two weeks.
“Government negotiations with respect to the IMF-supported programme is commencing this week and we are optimistic about making progress in our discussions,” a statement issued by the Ministry noted.
In order to achieve a programme from the IMF, the government says it has put together a “comprehensive post COVID-19 economic programme which will form the basis for the IMF negotiations.”
This programme, the Ministry said is to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability underpinned by key structural reforms and social protection.
Meanwhile, the Ministry of Finance has disclosed that it is currently undertaking a debt sustainability analysis to confirm the country’s debt sustainability.
The Ministry in a statement on Monday, September 26 said this is necessary as it is a prerequisite for an IMF Programme.
The IMF has also announced that its economic programme with Ghana will focus heavily on debt sustainability.
This was captured in a Question and Answer statement issued by the IMF as it begins deliberations with the Government of Ghana on an Economic Programme aimed at stabilising Ghana’s economy.
The IMF also added that the programme will support the credibility of government policies, restore confidence in the central bank’s ability to manage inflation and accumulate foreign exchange reserves to help the local currency withstand headwinds.
On the Fiscal sector, the IMF noted that an important policy objective would be to increase revenues, critical for debt sustainability while safeguarding spending on health, education, and social protection.
Details of the engagement
Dr. Stephane Boudet is expected to lead the IMF mission team members made up of senior economists, research analysts, and communication officers.
Joy Business is learning that issues about the country’s current fiscal position as well as steps taken to improve the revenue situation will come up.
The IMF team will engage the Finance Minister, Ken Ofori-Atta, the Governor of the Bank of Ghana, Dr. Ernest Addison, Vice President Dr. Mahamudu Bawumia, some business associations, civil society groups and parliament.
The IMF in its Question and Answer statement maintained that the engagement follows several visits in recent months to engage with the authorities.
The Ghana Association of Bankers (GAB) and 13 top banks have inked a contract with the government for the YouStart Commercial Programme with a total commitment of GH10 billion.
YouStart will act as the primary engine for creating one million jobs over the course of the next three years thanks to the three-year commercial initiative, which has a commitment of GH10 billion.
In order to support young people (18 to 40 years old) and youth-led firms in starting, growing, and expanding their own businesses, the government created YouStart.
District Entrepreneurship, Commercial, and Grace are the three programs that serve as the cornerstone of YouStart’s strategy for lowering unemployment in Ghana.
At the YouStart Commercial Programme’s signing ceremony with the banks, Ken Ofori-Atta, Finance Minister, said the commitment of GH¢10billion in this three-year programme is daring and will enable government to take a ‘big bite’ out of the enormous problems the country faces.
“So never in our history have we made such a bold commitment like a GH¢10billion three-year programme to see how we can really take a big bite out of the enormous problems that we have which can lead to very unsettling circumstances in the future, or radicalisation and all of that,” he said.
According to the Ghana Statistical Service, the unemployment rate for people between the ages of 15 and 35 is 19.7 percent. Even among individuals who appear to be employed, 50 percent are categorised as underemployed.
The finance minister emphasised the urgent necessity for these institutions to continue providing affordable capital, notwithstanding the risk to stability of the banking system.
Financing Arrangement
The Commercial Programme will provide Programme recipients with a conventional loan product from Participating Financial Institutions (PFIs) ranging from GH¢100,000 to GH¢500,000 to support working capital needs, demands for business expansion and the acquisition of equipment or machinery.
The banks will use their own internal sales channels to sell the standardised loan products (also known as ‘white label’ products) at a pre-set interest rate. The loan product, the loan application process, and the loan requirements will all be standardised by government and the Ghana Association of Banks (GAB).
Under the GH¢10billion, government will contribute a portion of the programme money to the commercial programme, and the PFIs will be expected to match government’s funds based on an established ratio and a planned standardised product.
In order to encourage the development of sustainable businesses, the National Banking College will also complement this offering by providing training in entrepreneurship and fundamental financial literacy to young business owners.
“From the Programme’s early days, I maintained that we could not move forward without the full support of our PFIs. Truly, we must all work together (public and private sectors) to ensure we create a culture and mindset that leaves our young people unafraid to challenge themselves,” the finance minister noted.
Thirteen Participating Financial Institutions (FPIs) and the Ghana Association of Banks (GAB) have offered to contribute GH¢5 billion to the YouStart programme, the government’s entrepreneurial initiative.
Through the partnership, the PFIs would provide a loan facility of about GH¢5 billion in the next three years, ranging from GH¢100,000 and GH¢500,000 to businesses under the programme.
YouStart is an initiative through which the government intends to provide funding and technical support to youth and youth-led businesses to assist them in starting, building, and growing their own businesses.
The Finance Minister, Mr Ken Ofori-Atta, who disclosed this during the signing of agreements with the Participating Financial Institutions (PFIs) of the YouStart programme in Accra on Tuesday, said the government would provide GH¢3 billion while development partners provide GH¢2 billion to support the implementation of the programme.
The funds would be used to meet the working capital requirement of businesses, support their expansion needs and purchase of equipment or machinery to enhance productivity and create more well-paid jobs, especially for the youth.
Minister of Finance, Ken Ofori-Atta, stated during his speech at the programme that the signing of the agreement demonstrated the government’s and the private sector’s commitment to strengthening links between education and job market stakeholders.
In addition to giving young Ghanaian entrepreneurs access to capital, training, and markets, he explained that the partnership would also enable the private sector to produce more respectable and long-lasting employment.
“Fundamentally, we had to adopt this approach because the pandemic taught us, we must re-orient our approach towards structural transformation and react with a clear plan to reap the benefits of our population dividend by building an Entrepreneurial State,” Mr Ofori-Atta said.
The partner banks are GCB Bank Plc, Absa Bank Ghana Limited, Access Bank Ghana Plc, Ecobank Ghana Plc, FBNBank Ghana Limited, Fidelity Bank Ghana Limited, and Universal Merchant Bank.
The others are Consolidated Bank Ghana Limited, CalBank Plc, OmniBSIC Bank Ghana Limited, Zenith Bank Ghana Limited, Bank of Africa Ghana Limited, ARB Apex Bank and GAB.
Mr. Ken Ofori-Atta noted that the three components of the YouStart programme (Commercial, module, District Entrepreneurship and YouStart Grace Modules) where to ensure that “no one is left behind in building Ghana as an entrepreneurial nation.
Deputy Minister of Finance, Dr John Ampontuah Kumah, adding his voice, said the partnership was critical in the Government’s quest to build future entrepreneurs and make Ghana an entrepreneurial State.
He explained that the YouStart programme was to deliberately grow start-ups and make them contribute to the government’s agenda of creating three million jobs, but depend largely on the support of banks.
He, therefore, urged the PFIs to sustain their support for the programme and ensure its extension to entrepreneurs with businesses in rural areas to help create jobs and uplift many living in those areas from poverty.
The Chief Executive Officer of GAB, John Awuah, said the YouStart was “a positive development.”
He added that “Part of the COVID-19 pandemic has taught us that we need to have a home- grown economy, one that is owned and managed by Ghanaians.”
This signing serves as confirmation that the public and private sectors can collaborate to build the entrepreneurial nation that we have all been longing for, Mr. Awuah said.
He noted that the Banks had worked with the Finance Ministryto design the YouStart programme to help propel businesses forward, particularly younger and smaller businesses.
Providing a brief on the programme, Mr Andy Ameckson, Acting Coordinator, YouStart, said under the commercial part, Banks would provide loans to beneficiary businesses at interest rates lower than the market rate.
“There will not be any collateral for businesses to access loans under the programme, and the recovery is also dependent on the beneficiaries,” Mr Ameckson pointed out.
The pilot phase of the YouStart programme was implemented in February 2022, involving 85 young entrepreneurs, and currently awaiting the availability of the President for the launch and full-scale implementation of all three modules.
YouStart is a programme that seeks to support young entrepreneurs to gain access to capital, training and technical skills that will enable them to start, build and grow their own businesses.
This initiative targets young people and students between the ages of 18-35 years who have brilliant business ideas and viable businesses, to support these individuals to nurture, grow, and expand their businesses and create jobs in the economy.
Government, through the YouStart programme, intends to build an entrepreneurial nation by providing some of the key enablers that make entrepreneurship a success.
These include, access to finance and markets, mentorship, strategic partnerships and digital linkages, technical assistance; and business advisory support service.
The Ghana Enterprises Agency (GEA) and National Entrepreneurship and Innovation Programme (NEIP) are the implementing agencies of the programme, whose goal is to create a Wealthy, Inclusive, Sustainable, Empowered and Resilient (WISER) society.
They would be supported by the National Youth Authority, Ghana Technical and Vocational Education and Training (TVET) Service, and Nation Builders Corps (NABCo).
The Nation Builders Corps (NABCo), which was introduced by the government on Tuesday, May 1, 2018 to temporarily address graduate unemployment, officially ended on September 1, 2022.
However, the finance minister, Ken Ofori-Attahas admonished the NABCo trainees to take advantage of the government’s flagship YouStart programme.
He claimed that unmanageable debt levels, credit restrictions on the private sector, and growing fiscal as well as external vulnerabilities were all contributing to the local economy’s instability.
based on Isaac Adongo “Ghana’s financial governance has been in limbo at this time due to Ken Ofori-Atta, the finance minister, being conspicuously absent.
Educative, now is the time for him to step up and offer leadership and guidance to pull this nation out of its own hole.”
It is the unsustainable debt levels, rising costs of debt affordability, high debt service, faltering revenue mobilization, spiralling non-performing loans, credit squeeze to the private sector, and the alarming gross financing requirements of the Government and rising fiscal and external vulnerabilities.
In recent times, Moody’s, one of the rating agencies, just like Fitch, has articulated these concerns aptly in its report on the economy.
But instead of reading the report in the whole for proper appreciation and self-introspection, the government expectedly zeroed in on the agency’s comment on growth after the easing of COVID effects to continue tickling itself for laughter on something it has less control on.
To start with, Moody’s optimism that growth would rebound is obvious. As COVID-19 restrictions ease and lives return to normal, economic activities will pick up and that should lead to strong growth, especially when compared to the prior year. That is why the news from the Ghana Statistical Service (GSS) that the economy grew by 3.9% year on year to June 2021 from a negative 5.7% in the same period of 2020 should worry the government and all well-meaning analysts the more.
At 3.9%, the economic recovery is rather sluggish, suggesting that most businesses are still doing far below capacity as Government’s fiscal measures and worsening financial sector is unable to help in reviving businesses and funding growth.
Clearly, this is an automatic or auto-pilot growth consistent with the survival instincts of individuals, households, and businesses.
To celebrate this in the manner in which the government is doing, especially when Moody’s affirms Ghana’s growth outlook at negative, is mediocre and a demonstration of the lack of appreciation of the potential of the economy.
As a matter of fact, Ghana’s foreign currency-denominated bonds have been downgraded by Fitch due to worrying major fiscal risks and external vulnerabilities.
Ghana’s recent growth trajectory as reported by the Ghana Statistical Service provides a clear case of lack of Government support. For example, what has the Government done to take credit for the reopening of restaurants, drinking bars, chop bars, and hotels, among others? Were there any special incentives in 2021? Absolutely nothing.
These are some of the businesses that were closed due to COVID-19 restrictions in the period to June 2020. If the pandemic is gradually dying off and the restrictions are being relaxed, expect the businesses to reopen naturally, albeit at a lower capacity. It is, therefore, understandable that there will be growth, but the rates will be uninspiring because Government has done nothing to support them.
From the effects of a negative growth rate in 2020, a strong recovery of the economy towards its original potential required real quarterly non-oil growth of between 7% to 9% to achieve what can be described as a robust economy. Interestingly, this level of growth requires no effort from Government. It ought to come naturally and automatically because man is rational and a predictable economic agent. This is trite knowledge.
The fact that we are rather registering economic growth of 3.9% from negative or zero betrays a struggling economy with huge challenges afflicting businesses, militating against their ability to breathe adequately.
One of these challenges is the tax regime and the austerity being pursued by Government in the midst of COVID-19 that is suffocating businesses. Over the period, the Government’s desperate desire for revenue has pushed it into other awkward policies that are compounding the problems of businesses in Ghana: taxes have been increased, the cedi IS struggling, port charges are on the ascendancy and petroleum prices are increasing on an hourly basis in the dark.
Instead of giving businesses real stimulus packages, the borrowing-minded government has even compounded the problem with their monstrous presence in the market on a daily basis, competing with and crowding out the private sector in their search for money to borrow.
Which competent economic management team does this?
Under such circumstances, how is this Government expecting businesses to recover to their potential after COVID-19?
It is more worrying, given a negative growth of 4.8% in quarrying and mining and more than 18% contraction being experienced in the oil and gas sub-sector.
To achieve the Government’s revenue targets, the economy must return to its full growth potential of the pre-COVID-19 era and a rebound in growth in the mining and quarry sub-sector.
The 5.2% growth of non-oil GDP and -4.8% in mining and quarrying show an economy gasping for breath to put people to work and food on their tables.
A lot of hard work is needed to fix this limping economy, not a lot of talk and propaganda.
Instead of shopping for experts to help them out of this quagmire, they are spin-doctoring and obfuscating the issues and celebrating an economy that is morbid and needing real fiscal and financial aid and robust monetary policies to recover.
Clearly, the ordinary Ghanaian (corporate or individual) has not yet been restored to the level of comfort in which they were before Nana Addo and his COVID-19 came.
The economy must be brought back to the pre-COVID-19 era and begin to register more positive numbers to create an impact on the lives of people. In order words, until we get there, it is safe to say that the economy is still struggling to return the people who lost their jobs during COVID-19 back to work, talk less of employing the hundreds of thousands of those already unemployed.
It takes sound policies to achieve this. For now, Government hasn’t done anything close to that. Conversely, people are being made worse off by the harsh economic environment.
Under Nana Addo and Bawumia, ‘the average man’s hand goes towards the mouth only when there is the need to drive away flies, not to put food into the mouth’.
Where’s Ofori-Atta?
While this is ongoing, Ghana’s financial governance has been in limbo with the Finance Minister, Ken Ofori-Atta conspicuously missing. Instructive, this is the time when he is needed to provide leadership and direction to steer this country out of its own ditch.
As President Nana Addo and his Vice, Dr Bawumia continues to launch one mediocre project after the other, the key official to drive the financing of these Government’s programs to ensure sustainable funding, is nowhere to be found. Ghana under NPP is being treated like a family property where people work at will.
Even when they claim they have several competent people who can provide leadership to get us out of this quandary, the President thinks it must just be only one man (his nephew).
Why is it that only that one person from the President’s family must hold on to the role of a Finance Minister? This obviously speaks volumes about what this “trusted family member” is sitting on for which the President feels uncomfortable to relinquish him from power.
Ken Ofori Atta’s continuous presence there has nothing to do with competence. He is there for a reason that only he and the President know.
Telling Nana to sack Ken Ofori-Atta is the biggest joke. The only way Ghanaians can get to see the most cherished secrets of Nana Addo and the NPP that his Finance Minister is sitting on is for the good people of Ghana to intervene at the polls of 2024.
We are further making a passionate appeal to the good people of Ghana to help save our economy from brazen and unmitigated robbery, hopelessness, and ultimate collapse by voting out this administration and any surrogates or leaches that they intend to impose on our destiny.
In spite of the current economic crisis, Ghanaians are being urged by Finance Minister Ken Ofori-Atta to keep up their hard work and support the government’s initiatives.
The Minister referenced recent economic growth data from the Ghana Statistical Service as proof of an economy that will recover while speaking at an event for banks backing the government’s flagship YouStart program.
GSS, recently disclosed that the economy grew by 4.8 percent in the second quarter of 2022, compared with 4.2 percent for 2021.
He said: “Indeed, the expected consequence would be the realization of a WISER (Wealthy, Inclusive, Sustainable, Empowered, and Resilient) society, with our young people more confident about their place in the World.”
He also quoted Osagyefo Dr. Kwame Nkrumah, Ghana’s first president, to emphasize the need for the citizenry to remain dogged and continually optimistic about efforts to better the lot of Ghanaians.
He courage-laden quote from Nkrumah read, “Countrymen, the task ahead is great indeed, and heavy is the responsibility; and yet it is a noble and glorious challenge – the challenge which calls for the courage to dream, the courage to believe the courage to dare, the courage to do, the courage to envision, the courage to fight, the courage to work, the courage to achieve – to achieve the highest excellencies and the fullest greatness of man. Dare we ask for more in life?”
Ofori-Atta has come under sustained attack recently as critics continue to call for his sack amid the economic downturn.
He has rebuffed the calls and has also gotten the backing of President Nana Addo Dankwa Akufo-Addo to continue in his role and to turn around the economy and reset it on a path of growth.
Finance Minister, Ken Ofori-Atta, has encouraged Ghanaians not to give up amid the current economic crunch, but to continue to work hard for a prosperous Ghana.
He said the Government had put in place measures to lessen the plight of its citizenry and evidence of growth in the economy was seen in the second quarter Gross Domestic Product (GDP) figure.
Despite the rising cost of fuel and its attendant increases in food and transport fares, inflationary pressures, and Cedi depreciation, the economy grew by 4.8 per cent in the second quarter of 2022, compared with 4.2 per cent for 2021.
The growth, the Ghana Statistical Service said, was driven by manufacturing, crops, information and communication, and education sub-sectors.
The services sector recorded the highest growth of 5.2 per cent, followed by the agriculture sector with a growth of 4.6 per cent and industry, which had a 4.4 per cent growth.
Mr Ofori-Atta at the signing of an agreement with banks supporting the Government’s YouStart entrepreneurship initiative was confident the programme’s implementation would speed up efforts of economic recovery and transformation.
He said: “Indeed, the expected consequence would be the realization of a WISER (Wealthy, Inclusive, Sustainable, Empowered, and Resilient) society, with our young people more confident about their place in the World.”
He noted that other policies, including the homegrown economic programme with International Monetary Fund (IMF), from which the Government expects to receive a $3 billion loan the Fund would help restore and make the economy resilient.
“We’re having an arrangement with the IMF so that we move beyond the dependence on Government and donors into our creative synergies,” the Finance Minister said.
He said this as the Government prepared to present the Budget Statement and Economic Policy for the 2023 financial year, which Mr Ofori-Atta said would be read on November 15, 2022.
Drawing inspiration from Ghana’s first President, Osagyefo Dr Nkrumah, the Finance Minister encouraged Ghanaians to be courageous to work hard to achieve excellence despite the current economic hardship.
He quoted Nkrumah, saying, “Countrymen, the task ahead is great indeed, and heavy is the responsibility; and yet it is a noble and glorious challenge – the challenge which calls for the courage to dream, the courage to believe the courage to dare, the courage to do, the courage to envision, the courage to fight, the courage to work, the courage to achieve – to achieve the highest excellencies and the fullest greatness of man. Dare we ask for more in life?”
On entrepreneurship, he said the creation of Ghana as an entrepreneurial nation through the YouStart programme with support from the private sector was critical to having a robust and sustained economy.
“Almost 37 per cent of our population are between the ages of 15 and 35 face unemployment challenge and the public sector cannot absorb this level of population. So, we need to build a system in which can train to be entrepreneurial to also hire other people,” Mr Ofori-Atta said.
“I look forward to working alongside all of you to realize a transformed Ghana where: ingenuity is encouraged, innovation is supported and ultimately, prosperity is shared,” he emphasised.
Through the arrangement, the PFIs would offer firms participating in the scheme loans ranging between GH100,000 and GH500,000 totaling around GH5 billion over the following three years.
The money would be used to purchase equipment or machinery to increase production and generate more high-paying jobs, particularly for young people, as well as to support firms’ requirements for expansion.
Mr John Awuah, the Chief Executive Officer (CEO), Ghana Association of Bankers (GAB), signed for the coordinating institution of the PFIs, which is GAB.
In his speech at the programme, Ken Ofori-Atta, Minister of Finance, said the signing of the agreement showed the commitment on the part of the Government and the private sector to strengthen links between education and job market stakeholders.
He explained that the partnership would provide access to finance, skills, and markets for young Ghanaian entrepreneurs and increase the ability of the private sector to create decent and sustainable jobs.
“Fundamentally, we had to adopt this approach because the pandemic taught us, we must re-orient our approach towards structural transformation and react with a clear plan to reap the benefits of our population dividend by building an Entrepreneurial State,” Mr Ofori-Atta said.
Dr John Kumah, the Deputy Minister of Finance, said the partnership was critical in the Government’s quest to build future entrepreneurs and make Ghana an entrepreneurial State.
Dr Kumah said the YouStart programme was to deliberately grow start-ups and make them contribute to the Government’s agenda of creating three million jobs but depend largely on the support of banks.
He, therefore, urged the PFIs to sustain their support to the programme and ensure its extension to entrepreneurs with businesses in rural areas to help create jobs and uplift many living in those areas from poverty.
The CEO of GAB, told the Ghana News Agency that the banks saw the support as a responsibility to help grow businesses with financial and other needed support to build the economy.
“Part of the COVID-19 pandemic has taught as that we need to have a homegrown economy, one that is owned and managed by Ghanaians. This signing is an attestation that the public and private sector can work together to create value and the entrepreneurial nation we’ve all been yearning for,” Mr Awuah said.
He noted that the Banks had worked with the Finance Ministry to design the YouStart programme to help propel businesses forward, particularly younger and smaller businesses.
“It is a positive development. We only must ensure that what we’ve put on paper, when it gets to execution, we all come to the table in a way the agreement has been signed,” Mr Awuah encouraged.
Providing a brief on the programme, Mr Andy Ameckson, Acting Coordinator, YouStart, said under the commercial part, Banks would provide loans to beneficiary businesses at interest rates lower than the market rate.
“There will not be any collateral for businesses to access loan under the programme, and the recovery is also dependent on them [beneficiaries],” Mr Ameckson pointed out.
The pilot phase of the YouStart programme was implemented in February 2022, involving 85 young entrepreneurs, and currently awaiting the availability of the President for the launch and full-scale implementation of all three modules.
The Ghana Enterprises Agency (GEA) and National Entrepreneurship and Innovation Programme (NEIP) are the implementing agencies of the programme, whose goal is to create a Wealthy, Inclusive, Sustainable, Empowered and Resilient (WISER) society.
They would be supported by the National Youth Authority, Ghana Technical and Vocational Education and Training (TVET) Service and Nation Builders Corps (NABCO) in its roll-out.
Official negotiations for a package of economic assistance for Ghana are scheduled to start soon between the Ghanaian government and the International Monetary Fund.
Upon reaching an agreement on a program, Ghana is reportedly looking to receive $3 billion from the Fund over the course of three years.
The latest loan request was for $2.5 billion, which was double the previous $1.5 billion goal set by the administration.
The talks between IMF representatives and Ghanaian authorities will begin on Monday, September 26, 2022, according to a Joy Business article.
The COVID-19 pandemic and Russia’s invasion of Ukraine were recently blamed by the IMF’s managing director, Kristalina Georgina, for the current economic circumstances in Ghana.
According to her, these two factors have significantly impacted other economies hence Ghana’s economic challenges cannot be blamed on bad policies implemented by the Ghanaian government.
“Like everybody on this planet, Ghana has been hurt by exogenous shocks, first the pandemic, then Russia’s war in Ukraine, and we need to realize that Ghana’s challenge is not because of bad policies, but the combination of external shocks,” she indicated.
The IMF boss also speaking on Ghana’s possible programme said her outfit is determined to reach an agreement with the Government of Ghana by the end of this year.
She added that constructive discussions have so far been held with Ghanaian authorities for a possible economic support programme.
On July 1, 2022, President Nana Addo Dankwa Akufo-Addo ordered Finance Minister, Ken Ofori-Atta to present an economic rescue programme to the IMF following the current economic conditions in the country.
Subsequently, a team from the Fund led by Carlo Sdralevich visited Ghana between July 6 – 13, to gather relevant data and met with relevant stakeholders.
The Government of Ghana and the International Monetary Fund are expected to commence official negotiations for an economic support programme for the country.
Ghana is said to be targeting an amount of $3 billion over three years from the Fund once an agreement on a programme is reached. The new amount requested as a loan was double the government’s initial target of $1.5 billion.
According to a Joy Business report, the negotiations between IMF officials and Ghanaian authorities will start on Monday September 26, 2022.
Managing Director of the IMF, Kristalina Georgina, has recently attributed Ghana’s current economic conditions to external shocks emanating from the COVID-19 pandemic and Russia’s invasion of Ukraine.
According to her, these two factors have significantly impacted other economies hence Ghana’s economic challenges cannot be blamed on bad policies implemented by the Ghanaian government.
“Like everybody on this planet, Ghana has been hurt by exogenous shocks, first the pandemic, then Russia’s war in Ukraine, and we need to realize that Ghana’s challenge is not because of bad policies, but the combination of external shocks,” she indicated.
The IMF boss also speaking on Ghana’s possible programme said her outfit is determined to reach an agreement with the Government of Ghana by the end of this year.
She added that constructive discussions have so far been held with Ghanaian authorities for a possible economic support programme.
On July 1, 2022, President Nana Addo Dankwa Akufo-Addo ordered Finance Minister, Ken Ofori-Atta to present an economic rescue programme to the IMF following the current economic conditions in the country.
Subsequently, a team from the Fund led by Carlo Sdralevich visited Ghana between July 6 – 13, to gather relevant data and met with relevant stakeholders.
In November 2021, Finance Minister Ken Ofori-Atta remarked that the Akufo-Addo led administration had been managed to stabilize the local economy from the shocks of the global coronavirus outbreak.
As he delivered the 2022 budget on the House floor, Ken Ofori-Atta said, “Mr. Speaker, we know we can finish the job.
It is commonly known that between January 2017 and March 2020, we stabilized and recovered the economy before the pandemic.
We had put the nation on a course toward budgetary sustainability and growth by turning around the unsettling economic trend we had inherited.
Finance Minister, Ken Ofori-Atta, has averred that the governing New Patriotic Party (NPP) was able to stabilize the economy during the outbreak of the global coronavirus pandemic.
According to him, between January 2017 and March 2020, the local economy witnessed a turn around from its wobbling state.
Presenting the 2022 budget before parliament on Wednesday, November 17, 2021, the Finance Minister said the economy has been put on the path of fiscal stability.
He said, “Mr. Speaker, we know we can get the job done. It is well-known that prior to the pandemic, we had stabilised and turned around the economy between January 2017 and March 2020. We had reversed the worrying economic trend we inherited and placed the country on a path of fiscal sustainability and growth.
“We doubled the economic growth rate from 3.4 percent to an average of 7.0 percent between that period. It is undisputed that we brought down the fiscal deficit below the 5 percent threshold, we improved our gross international reserves from US$4.9 billion (2.8 months of imports) to US$9.9 billion (4.7 months of imports), we provided free SHS for 1.2 million Ghanaian students,” he added.
The budget presentation is in accordance with Article 179 of the 1992 Constitution and section 21 of the Public Financial Management Act, 2016 (Act 921).
However, some economists have share contrary views saying Ghana is broke and needs to be revamped.
2022 Budget: We have turned the economy around – Finance Minister
0 seconds of 3 minutes, 12 secondsVolume 90%
2022 Budget: Ken Ofori-Atta arrives in Parliament
0 seconds of 1 minute, 5 secondsVolume 90%
2022 budget: We are already burdened, reduce fuel prices – Ghanaians to government
Some Ghanaians have shared their expectations with GhanaWeb ahead of the 2022 budget reading in parliament by the Finance Minister, Ken Ofori-Atta. The Finance Minister will present the budget statement and economic policy of government on Wednesday, November 17. Some Ghanaians who spoke to GhanaWeb’s Ernestina Serwaa Asante highlighted the increment in fuel prices as their major concern.
International rating firm Fitch predicted that Ghana‘s real GDP growth would slow to 4% in 2022 as a result of the country’s rising inflation rate and the Central Bank’s ensuing increase in the country’s monetary policy rate.
In a publication on August 22, 2022, the rating body said: Inflation increased sharply to 31.7% in July as a result of higher commodity prices that have been exacerbated by exchange-rate pressures, with the Ghanaian cedi depreciating 35% against the US dollar to date.
“This has prompted the Bank of Ghana to increase the policy rate by 750bp so far this year, including a 300bp hike on 17 August following an emergency meeting of the monetary policy committee. Fitch expects real GDP growth to slow to 4% in 2022 and 5.3% in 2023,†it added.
Delivering the 2022 mid-year budget review in parliament on July 25, Ken Ofori-Atta explained, “In the light of significate changes in the global environment and our own unique challenges, we have revised our economic growth estimate for 2022 to 3.7 percent, down from 5.8 percent as stated in the 2022 budget.”
The finance minister added that apart from the revised overall GDP growth rate, almost all other macroeconomic variables have been revised downward.
“… non-oil GDP growth of 4.3 percent down from 4.9 percent; end-period inflation of 28.5 percent, up from 8 percent. The overall deficit of 6.6 percent of GDP, down from 7.4 percent; primary surplus of 0.4 percent of GDP, up from a surplus of 0.1 percent and a Gross International Reserve of not less than 3-months import cover,” he said when he addressed parliament.
He claims that “He’s not doing well, is he?
While the President and his cabinet are actively working to make this country happier and more peaceful, I don’t think he pays attention to advice.
I have no idea why.”
He added; “When you are in such a state, you find a solution to it. You go across board. You meet experts. You meet stakeholders. Look, invite them into your office; sit down with them. The importers we are talking about might be the chief financiers for the ruling party, so don’t go and touch that constituency. Once you touch them, there is trouble but you see if you don’t hold the bull by the horn to take decision that for the next six months because of the current economic situation, there’s not going to be any imports into this country . . .We are in a difficult situation, don’t let us joke about it.”
On Wednesday, 24th August 2022 edition of Peace FM’s morning show ‘Kokrokoo’, Allotey Jacobs explained why he’s hard on the Finance Minister.
To him, Akufo-Addo’s appointees are to work as a team to make the administration successful but because Ken Ofori-Atta is not performing well, it seems the government is underperforming.
“There are some measures that can send shock waves which will yield results at the end of the day… he’s (Ofori-Atta) not discharging his duties diligently… I’ve supported a lot of policies coming from the Ministry of Finance… but it seems Ken Ofori-Atta who is the striker among Akufo-Addo’s appointees, is allowing the ball to pass through his legs,” he lamented.
The Chairman of the Council of State, Nana Otuo Siriboe, has reportedly requested all members to cease their vacation and show up to the meeting that is due to take place today, August 24, 2022.
They will have the chance to learn about the economic issues, particularly the devaluation of the cedi, at the meeting so they can advise President Akufo-Addo in accordance with their constitutional obligations.
“Information reaching DGN Online indicates that the Council of State has summoned the Finance Minister, Ken Ofori-Atta and the Governor of the Bank of Ghana, Dr Ernest Addison, over the free fall of the local currency, the cedi. The Ghanaian Cedi is currently trading at over GH¢10 to one dollar, sending panic among the business community.
“Chairman of the Council of State, Nana Otuo Siriboe, has asked the council members to cut short their recess to attend the emergency council meeting to meet managers of the economy. The Finance Minister, Ken Ofori-Atta, has travelled out for medical review with Minister of State at the Finance ministry Charles Adu Boahen stepping in for him. The Council meeting is tomorrow, Wednesday, August 24, 2022,” part of the Daily Guide report read.
The economy has in recent times been experiencing a downturn, with citizens lamenting the increased cost of living.
Ghana’s inflation rate for the month of July was 31.7% per data put out by the Ghana Statistical Service.
The recent developments prompted the government to initiate contact with the International Monetary Fund for a programme.
Amid the downturn, international rating agencies such as Fitch and Standards and Poor have downgraded Ghana’s economy. The Cedi as well has also been experiencing a free fall, with the exchange rate pegged at GH₵10 to a US dollar at some forex bureaus.
The Council of State has reportedly invited Finance Minister Ken Ofori-Atta and the Governor of the Bank of Ghana, Dr. Ernest Addison, over the cedi’s depreciation.
According to a Daily Guide newspaper report, the Chairman of the Council of State, Nana Otuo Siriboe, has asked all members to halt their recess and attend the meeting scheduled for today, August 24, 2022.
The meeting is to afford them the opportunity to be briefed on the economic challenges, particularly the cedi depreciation in order to advise President Akufo-Addo per their constitutional mandate.
Meanwhile, it is expected that the Minister of State at the Finance Ministry, Charles Adu Boahen, will attend the meeting owing to the non-availability of Ken Ofori-Atta.
“Information reaching DGN Online indicates that the Council of State has summoned the Finance Minister, Ken Ofori-Atta and the Governor of the Bank of Ghana, Dr Ernest Addison, over the free fall of the local currency, the cedi. The Ghanaian Cedi is currently trading at over GH¢10 to one dollar, sending panic among the business community.
“Chairman of the Council of State, Nana Otuo Siriboe, has asked the council members to cut short their recess to attend the emergency council meeting to meet managers of the economy. The Finance Minister, Ken Ofori-Atta, has travelled out for medical review with Minister of State at the Finance ministry Charles Adu Boahen stepping in for him. The Council meeting is tomorrow, Wednesday, August 24, 2022,” part of the Daily Guide report read.
The economy has in recent times been experiencing a downturn, with citizens lamenting the increased cost of living.
Ghana’s inflation rate for the month of July was 31.7% per data put out by the Ghana Statistical Service.
The recent developments prompted the government to initiate contact with the International Monetary Fund for a programme.
Amid the downturn, international rating agencies such as Fitch and Standards and Poor have downgraded Ghana’s economy. The Cedi as well has also been experiencing a free fall, with the exchange rate pegged at GH₵10 to a US dollar at some forex bureaus.
The President of GUTA, Dr. Joseph Obeng, in an interview published by the Insight newspaper, stated. “the exacerbating tension that is coming from the trading Committee is huge . . . They believe that if nothing is done about their businesses, their businesses are going to collapse in perpetuity so they are calling for a serious demonstration”.
He feared local businesses will crash to the ground should the cedi keep depreciating.
“Businesses have reached a situation where their survival is seriously threatened”, so they are “calling on the government, as a matter of urgency, to reconvene the Foreign Exchange Committee Barbara Oteng-Gyasi inaugurates Local Content Committee of the National Film Authoritythat was set up a few years ago by the Finance Ministry which involved all relevant stakeholders, to help find an immediate solution”, he further said in a press release.
Reacting to the GUTA grievances, Mr. Pratt also asked what the government is doing to salvage the local businesses and to whip up interest in local products.
He wondered why Ghana still imports commodities that can be manufactured in the nation by local producers and manufacturers.
“What technology do we use to manufacture handkerchief that Ghana has to import handkerchief? When you take chewing stick and take day nursery kids to pick up a kitchen knife and carve out toothpicks, can’t they do it? But we also import toothpick,” he exclaimed.
Adding that Ghana also imports “guinea fowls from Denmark”, he asked “how will your currency be stable?”
Mr. Pratt called for strict measures to improve the local market and discourage imports.
Madam Jane Mensah, the head of the Electoral Commission, is fully aware that the NPP, Ghana’s most dishonest and inept political party, will be replaced by a new government that will not only remove her from her position but also potentially subjects her to legal proceedings that could land her in jail. As a result, she may exert all of her efforts to prevent that from happening.
How is she going to stop that is the question? Election rigging, such as what she did in 2020, is the only way to do this. The most crucial question that many Ghanaians haven’t thought to ask, and that the NPP government hasn’t also given an answer is, “If the government didn’t actually win the 2020 elections, how likely is it that they will break the eighth cycle in 2024?
One of the reasons I have lived a good life with my family and never been accused of a crime or faced the law is because I am a man who has no interest in using violence. However, I must caution anyone who intends to use the law to take away any Ghanaian’s means of subsistence at this time. They may be treading dangerous territory because just because Ghanaians are silent doesn’t mean they are stupid.
Political avarice and tribalism prevent tribal bigots from seeing clearly and accepting that the majority of people are no longer interested in the NPP, as a result of our bad performance, so if we are beaten, we must peacefully transfer power. That is not at all how the con NPP government sees things; instead, they have already begun nefarious plans to win the 2024 elections.
Given how this specific government’s incompetence has destroyed every piece of infrastructure in Ghana and led to the greatest rates of unemployment and crime nationwide, that is actually highly dangerous. After President Nana Akufo Addo refused to remove his relative from office, the Finance Minister, Ken Ofori-Atta, even tell Ghanaians that the president is concealing something.
I am fully aware that some NPP politicians are unhappy with how Akufo Addo has decimated the party, while others don’t care what the president will do to keep the NPP in power.
They have information they don’t want the average Ghanaian to know, particularly about the extensive corruption these families of political crooks have fostered. Why, in face of widespread opposition from Ghanaians, is Akufo Addo employing all nefarious means to ensure that the NPP administration receives support from Jane Mensah, the corrupt head of the electoral commission, in order for it to win the 2024 elections?
The easy solution is that if Jane Mensah manipulates elections once more, she will be able to keep her job and avoid being held accountable for her earlier election offenses. More crucially, her aid would prevent Nana Akufo Addo, the president, and other corrupt NPP leaders from being adequately probed and prosecuted since the future leader following Akufo Addo will fire all the Supreme Court judges the president has lined up.
It is up to all of Ghana’s opposition parties to prevent this from happening and intensify the anguish that has already struck Ghanaians so hard without a cure. I believe that tribalism has taken over the brain of many Ghanaians and those in the Diaspora, and therefore; as long as the president is from their tribe, they don’t care if the regular Ghanaians stand in line to buy chicken heads as food.
Isn’t that foolish considering that it might take Ghana five to ten years before this disastrous economic situation gets out of hand? When Akufo Addo named his relative Ken Ofori-Atta as the finance minister, all of Ghana’s intellectuals, educators, and academicians did was stand by and observe. What do Ghanaians anticipate as a result?
I’ve already shown that Akufo Addo chose Ken Ofori-Atta in order to facilitate his involvement in corruption, which is one of the reasons the NPP government was unable to succeed and the nation was left with unmanageable debt. All of the NPP’s efforts to rig the upcoming elections are being made solely to conceal crimes they have done in order to escape going to jail.
Since she refused to enter the witness box to explain the fictitious results of the elections, she gave Ghanaians, Madam Jane Mensah has been terrified to death. As a result, she will do everything it takes to avoid being charged or having to go to court.
As a result, if the needle says it can sew, it should close the hole in its head. To put it another way, if Ghanaians consider themselves to be intelligent people, with professors and scholars, none of them should sit down and observe the NPP government, which has been rejected for its incompetence, as they implement their nefarious fraudulent schemes to maintain power. This is because you people can’t see far enough to realize that Ghanaians may soon have to chew corncobs to survive.
Source: Ghanaweb
DISCLAIMER: Independentghana.com will not be liable for any inaccuracies contained in this article. The views expressed in the article are solely those of the author(s) and do not reflect those of The Independent Ghana
“We want to call the attention of the Government to the fact that depreciation of the cedi against other major trading currencies is getting out of hand, and the increase in the monetary policy rate is also leading to high lending rate in the country.
He continued “By this statement, we are calling on the Government, as a matter of urgency, to reconvene the Foreign Exchange Committee that was set up a few years ago by the Finance Ministry which involved all relevant stakeholders, to help find an immediate solution.â€
Below is the complete statement
PRESS STATEMENT
BUSINESSES BLEEDING TO DEATH
As a result of the current exchange rate situation in the country, businesses are seriously bleeding to death.
The Government, therefore, needs to do something to salvage the situation as soon as possible.
We want to call the attention of the Government to the fact that the depreciation of the cedi against other major trading currencies is getting out of hand, and the increase in the monetary policy rate is also leading to a high lending rate in the country.
Businesses have reached a situation where their survival is seriously threatened if no immediate action is taken by the Government to find a solution.
By this statement, we are calling on the Government, as a matter of urgency, to reconvene the Foreign Exchange Committee that was set up a few years ago by the Finance Ministry which involved all relevant stakeholders, to help find immediate solutions.
It could be recalled that since December 2021 when the dollar was 6.4 cedis, our working capital has been depleted by 40%. Now that, the dollar has reached about 9.00 cedis, our worst fear is that we are now going to make Christmas orders from our suppliers, which may aggravate the situation.
If immediate remedial measures are not taken to control this alarming situation, we may be using One Million Ghana cedis to buy only One Hundred Thousand US dollars when the dollar reaches 10.00 Ghana cedis.
At this point, if nothing is done, speculations would be rife and serious panic will set in for people to invest in forex as a matter of security for their hard-earned working capital, thereby making control of such a situation difficult for the government.
We recognize that excessive importation is one of the major causes.
Here we think that the government has failed to take due advantage of our National Investment Laws, especially on foreign retail trade and wholesale to tighten imports.
Allowing foreigners into the retail trade and wholesale sectors of the economy will not help this country, but rather defeat the action plan set for implementing 1D 1F, AfCFTA, and the general industrialization in Ghana.
We also want to remind the Government that the big-time institutional importers, especially, those who serve as conduits for dumping goods mainly from China are the culprits.
Small and Medium Scale importers like GUTA members import only 15% out of the whole volume of imports into the country.
For the locals, the import business has become gloomy and pathetic as the multinationals have taken over. We have started looking out for goods to export to support the economy and be able to sustain our businesses, but the same cannot be said of these foreigners.
We, therefore suggest that since they do not bring in physical cash to invest but rather resort to dumping and repatriating our hard-earned foreign exchange as a country, the investment law should be amended to make them deposit their capital fund here in Ghana to make their transfers.
Most of these foreigners come under the guise of manufacturing but divert to trading; taking advantage of the loopholes in the laws, as well as the lack of enforcement of same, and cause damage to our economy.
The juiciest part of our economy such as banking, telecommunication, oil, and mining the extractive industries are all dominated by foreigners who repatriate all their profits to their home countries leaving us with virtually nothing except a few taxes and some royalties.
We herein suggest that the Government should devise an effective method to schedule this repatriation in a staggered manner over a reasonable period, apart from revising the investment law to ensure that investments in all these profitable and juicy areas have some reasonable equity for retention in Ghana rather than the current situation where these companies consume all our foreign exchange earnings.
Most foreign direct investors overpriced their investment to have the advantage to repatriate the same value to their home countries to our detriment. This explains the reason we hardly physically see these investments corresponding with the amounts that are being declared as foreign direct investments in the country.
Over-dependence on foreign services such as health care, education, and others by Ghanaians are also to be blamed for this problem.
The movement and money transfer by churches should also be monitored and controlled.
We believe that the government should have full control of the management of our national resources as well as, the capability to solve this problem in the shortest possible time; unless this rapid depreciation of the cedi is a deliberate plan by the government to devalue our national currency.
How can we go on like this as a nation? because this is not just a simple matter of passing on the cost to the consuming public. The purchasing power of the consumers is drastically reduced due to high inflation rates and other factors. As a result, consumers are not even buying at the moment, let alone increasing the prices. Businesses’ turnover is negatively affected, thereby rendering us unable to service our loans, especially for those whose capital is borrowed from commercial banks and other sources.
At this stage, the only prudent thing to do is to hold unto your stocks without selling, but the problem here is, that you might be owing your suppliers and banks, and at the same time, you cannot also punish the consuming public.
The only option now is for the Government to think outside the box and find a pragmatic solution to bring the economy back to its feet.
We agree that there is a problem in the world, and Ghana is no exception. This period is the best time to bring leadership skills to bear and make a difference, of course, with the support of all Ghanaians regardless of political leaning.
Businesses are indeed bleeding and are in dire need of emergency rescue.
This was to aid the new Regional Headquarters of the Agency in the North East Region begin full operations and in line with the president’s vision of Job Creation, decentralisation and infrastructural development, actualising equitable implementation of the One Million Jobs Agenda.
President Akufo-Addo, who on the occasion also commissioned another newly built magnificent edifice to serve as the Administrative head of the North East Region was elated at how infrastructure is speedily coming to the Region, premised on his response to traditional authorities and the people of Ghana to create new Regions, Municipalities and Districts.
Speaking at a brief ceremony to mark the commissioning, President Akufo-Addo called on all and sundry to support the Employment Agenda of his government in every diverse way possible, an initiative he believes will continue to instil peace in the Region and Ghana and also bring about development.
Alhaji Ibrahim Bashiru, Deputy CEO in charge of Operations at the Youth Employment Agency acting on behalf of the CEO, Lawyer Justin Frimpong Kodua thanked the president for his Resourcefulness and Support for the Agency since 2017.
Alhaji Ibrahim Bashiru explained the realisation of a massive deficiency which impeded the operations and effective implementation of modules of the Agency that had been infested with corruption in the previous years. “Management took a bold decision of revamping and reforming the Agency into an enviable one, a result of which we are experiencing today”, he said.
According to Mr Bashiru, two of such Regional offices have been completed and/or commissioned in the Oti, Western North and Ahafo Regions. Several others are at various stages of completion in other Regions and Districts. He explained that all of these are intended to bring life to the Agency’s innovative programmes like the Agric-based Flagship projects, YEA Jobcentre, Artisan Directory, CHWS etc.
Mr Bashiru further assured the president and the entire country of consistent hard work and innovation to bring more development and create more jobs for the youth of Ghana.
North East Regional Director of the Youth Employment Agency Nurudeen Mohammed was particularly thankful to the president, CEO Lawyer Kodua Frimpong and Deputy CEO Ibrahim Bashiru for the immense support and for bringing the Agency closer to the people.
The event was graced by His Excellency President Akufo-Addo, the Overlord of the Mamprugu traditional area Naa Abdulai Mahami Sheriga, North East Regional Minister Mr Zakaria Yidana, Local Government Minister Mr Dan Botwe, other cabinet ministers, presidential staffers, staff of YEA among others.
The Don’t Pay group, which is demanding a reduction of bills to an affordable level, says more than 80,000 people have pledged to cancel their direct debit payments from 1 October.
This is the date the price cap – the maximum amount suppliers can charge customers in England, Scotland and Wales for each unit of energy – increases.
Analysts are forecasting the typical customer is likely to pay £3,358 a year from October, up from £1,971 a year in April.
Don’t Pay says millions of people won’t be able to afford their energy bills this winter – and that its campaign is the only way to force the government and energy companies to take action.
The group also says it won’t take any action unless one million people sign up and it is “consulting extensively” with legal and personal debt experts.
But charities have warned not paying energy bills has very serious consequences for consumers.
What happens if you don’t pay your energy bills?
If you don’t agree a payment plan with your supplier, they might try to force you to have a pre-payment meter installed.
In very rare cases, if you haven’t paid a bill after 28 days, you might be threatened with disconnection of your supply but you’ll normally be offered a meter instead.
Your supplier must give you a chance to pay your debt through a plan first.
If you’ve reached State Pension age, your supplier can’t disconnect you between 1 October and 31 March if either, you live alone or you only live with other people who have reached State Pension age, or children under 18 years old.
Your supplier could also pass your details to a debt collection agency – and there could be charges to cover the cost of this – according to debt charity StepChange.
Many suppliers also charge extra fees for late payments, so this could be another additional cost.
Paying by direct debit is normally the cheapest way to pay for electricity and gas, so if you cancel your direct debit, your bills will likely be higher.
Finally, not paying bills could damage your credit rating and make it harder to borrow money in the future.
What should you do if you cannot afford your bills?
To make sure your bill is accurate, take a reading from your gas and electricity meter and send it to your supplier.
Direct debits are usually based on your estimated energy use for the year and your supplier may be able to reduce your payments if the estimate is higher than the amount you are actually using.
If you’re on a prepayment meter and you can’t afford to top up you can get temporary credit from your supplier but you’ll have to pay this back.
You may also be able to repay your debt directly from your benefits through the Fuel Direct Scheme.
What help is available?
The government has also announced a range of support to help people with energy bills, including a £400 grant for all UK households from October.
This discount will be made automatically by your energy supplier in monthly instalments, with a reduction of £66 in October and November, and of £67 a month from December to March 2023.
More than 600 flights were canceled and thousands more were delayed in the United States on Saturday, according to the flight tracking website FlightAware.
Saturday marks the third day of major flight cancellations after thunderstorms pounded major airports on the East Coast on Thursday, making for one of the worst days for flight cancellations of the past six weeks.
This summer travel season has been plagued with flight cancellations and delays as airlines contend with staffing shortages, severe weather and air traffic control delays.
As of Saturday evening, at least 636 flights into, within or out of the United States were canceled, and an additional 5,921 domestic flights were delayed, according to FlightAware.
What should I do if my luggage is delayed, lost or damaged?
Newark Liberty International and Chicago Midway International Airport topped the list of US airports with the highest number of canceled flights, the flight tracking website reported.
American Airlines canceled 4% and delayed 24% of its Saturday flights, according to the site.
Meanwhile, United had 4% of its flights canceled and 23% delayed, and Delta had 2% canceled and 22% of flights delayed, FlightAware reported.
‘Unsustainable and shambolic’: Flight attendants speak out on summer travel chaos
About 41% of JetBlue’s flights and 36% of Southwest’s flights were also delayed on Saturday, according to the website.
“We continue working through a variety of weather related challenges across the country this weekend,” Southwest Airlines told CNN in a statement on Saturday. “Our teams are working to get our customers to their destinations safely and as quickly as possible.”
CNN has reached out to the other domestic carriers for comment about Saturday’s delays and cancellations.
Amid the flurry of flight cancellations and a flood of complaints from passengers, the US Department of Transportation on Wednesday proposed expanding the circumstances when airline passengers can get refunds.
The department said it was inundated with complaints from airlines passengers seeking refunds since the outset of the Covid-19 pandemic.
The proposed refund rules come after a private June meeting that Pete Buttigieg held with airline CEOs in which he told them to fix the summer flight schedules that have been bedeviled with thousands of cancellations.
A little-known Hong Kong company has seen its stock market value soar in recent days, for no apparent reason.
AMTD Digital made its New York debut last month, priced at $7.80 a share.
This week, the firm’s shares have been on a rollercoaster ride, closing on Wednesday at $1,100.
The meteoric rise in AMTD Digital’s value has seen it likened by some commentators to “meme stocks”, shares that gain popularity among retail investors through social media.
Trading in the company’s shares has been particularly volatile this week, as its value rose above $300bn on Tuesday.
That meant that AMTD Digital briefly overtook technology giant Alibaba’s New York stock market valuation.
In Wednesday’s trade it plunged by more than 30%, but that still gave it a higher US market value than Disney.
On Monday, AMTD Digital thanked investors and said it “noted significant volatility” in trading.
“The company is also monitoring the market closely for any unusual trading activities or abnormalities,” the statement said.
AMTD Digital offers services to develop online businesses’ financial services technology. It had 50 members of staff as of the end of February this year, according to a stock market filing.
It makes money mainly by charging fees and commissions for its digital financial services business, which brought in just over $25m in revenue last year, according to a regulatory filing.
A space-themed corporate video on the company’s website highlights the range of digital services that the company offers.
The company’s website describes it “as the fusion reactor at the core of the AMTD SpiderNet ecosystem, AMTD Digital is a one-stop digital solutions platforms in Asia with businesses spanning multiple verticals, including digital financial services, digital media, content & marketing, SpiderNet ecosystem solutions, and digital investments.”
Some commentators have likened the rise in AMTD Digital’s value to so-called “meme stocks”. Due to the nature of their popularity, trading in meme stocks is often extremely speculative and volatile.
US retailer GamesStop and cinema chain AMC were two of the most high profile meme stocks that saw their shares soar last year.
“This is a major head-scratcher and it shows that the era of meme stocks is not over with a $300bn market cap,” Dan Ives, managing director of Wedbush Securities told the BBC.
“In a major risk off market in 2022 it’s bewildering this meme dynamic can still happen but yet it has and Wall Street is watching this latest craze,” he added.
AMTD Digital did not immediately respond to a request for comment from the BBC.
Crisis-hit Chinese property giant Evergrande says that one of its subsidiaries has been ordered to pay out 7.3bn yuan (£888.7m; $1.08bn) for failing to honour its debt obligations.
Evergrande Group (Nanchang) Co. Ltd must make the payment to a guarantor of its liabilities, the firm says.
It came just two days after it outlined plans to restructure its foreign debts.
However, some commentators criticised the restructuring proposal for its lack of concrete details.
On Sunday, in a statement to the Hong Kong Stock Exchange, the company said its subsidiary had failed to fulfil its debt obligations to an unnamed guarantor.
Evergrande Group (Nanchang) Co. Ltd had pledged a total of 1.3 billion shares that it held in Shengjing Bank Co. Ltd as counter-guarantees.
“As the borrowers failed to repay the loans, the applicant carried out its obligations under the guarantee and claimed against the subsidiary under the pledge,” Evergrande said.
On Friday, Evergrande made a long-awaited announcement about how it aims to restructure its foreign debts.
The company said it will offer its offshore creditors asset packages that may include shares in it overseas units – including an electric vehicles business and property services provider – as a sweetener.
However, the proposal was seen by some as not providing enough in the way of details on how Evergrande aims to restructure its huge liabilities.
Evergrande was once China’s top-selling property developer but has for months been struggling under the weight of more than $300bn of debts, of which around $20bn is held by investors from outside China.
The announcement came as China’s real estate sector, which accounts for about a third of the world’s second biggest economy, faces a major cash squeeze.
A series of debt defaults involving several of the country’s heavily indebted developers has spooked investors who fear contagion in the sector.
China’s property crisis is estimated to have wiped more than a trillion dollars off the value of the sector last year.
Last month, two of Evergrande’s top bosses resigned, after an internal probe found that they misused around $2bn in loans.
The company said that it found that chief executive Xia Haijun and chief financial officer Pan Darong were involved in diverting the loans secured by its property services unit to the wider group.
UN Secretary General Antonio Guterres has called for oil and gas companies to face special taxes.
His comments come as surging energy prices sparked by the war in Ukraine push industry profits to new highs.
Mr Guterres said it was “immoral” for firms to be profiting from the crisis.
Russia’s invasion of Ukraine in February has worsened a global shortage of oil and gas, disrupting access to oil and gas from Russia – a major supplier – and driving prices higher.
While households are grappling with higher energy bills, companies are reaping the benefits.
Together, four of the biggest energy firms – Exxon, Chevron, Shell and TotalEnergies – earned nearly $51bn in the most recent quarter – almost double what they made in the same period last year.
“This grotesque greed is punishing the poorest and most vulnerable people, while destroying our only common home,” Mr Guterres said.
“I urge all governments to tax these excessive profits, and use the funds to support the most vulnerable people through these difficult times.”
Last month, the UK approved a 25% ‘windfall tax’ on energy firms, a one-off levy the government says will raise some £25bn to help offset household energy bills, which have spiked.
Some other countries, such as Italy, have imposed similar measures.
But French lawmakers recently rejected such a move, and there is little political momentum in the US, despite a windfall tax proposal from some members of Congress.
Frank Macchiarola, a senior vice president for oil and gas lobby group the American Petroleum Institute, said calls for a windfall tax were misguided.
“Policymakers should be focused on increasing energy supply and reducing costs for Americans. Imposing new taxes on our industry will do the exact opposite and only discourage investment at a time when it’s needed most,” he said.
Mr Guterres warned that high energy prices would have wide ranging consequences, as households and governments around the world buckle under the pressure.
“Many developing countries – drowning in debt, without access to finance, and struggling to recover from the Covid-19 pandemic – could go over the brink,” he said. “We are already seeing the warning signs of a wave of economic, social and political upheaval that would leave no country untouched.”
The compensatory damages issued on Thursday were meant to cover the actual costs to the family incurred by Jones’ defamation, such as the private security they hired during the trial out of fear of an attack from a Jones supporter.
The punitive damages are meant to act as a deterrent, and to stop Jones from repeating his offence.
“We ask that you send a very, very simple message and that is: Stop Alex Jones,” a lawyer for the parents said in court on Friday.
“Stop the monetisation of misinformation and lies. Please.”
Earlier on Friday, an economist hired by the parents testified that Jones, his media brand Infowars and parent company Free Speech Systems are worth up to $270m.
Image source, ReutersImage caption, Jesse Lewis, six, was killed at Sandy Hook
Bernard Pettingill told the court that records indicate Jones withdrew $62m for himself from his company in 2021 as his legal troubles grew.
“That number represents, in my opinion, a value of a net worth,” Mr Pettingill said. “He’s got money put in a bank account somewhere.”
Free Speech Systems filed for bankruptcy protections in the first week of the two-week trial.
The trial heard that Jones’ business had earned about $800,000 in a single day selling diet supplements, gun paraphernalia and survivalist equipment.
Lawyers for the parents accused Jones of trying to hide evidence, and argued that he had committed perjury when he denied having sent any messages about the Sandy Hook attack.
Earlier this week, an attorney for the plaintiffs revealed that Jones’ legal representative had accidentally sent them two years of the radio host’s telephone texts.
Image source, ReutersImage caption, The parents said Jones had made their lives “hell”
He said that the congressional committee investigating last year’s US Capitol riot had requested access to the messages as they look into Jones’ alleged role.
This is the first of three trials against Jones being brought by family members of Sandy Hook victims.
He has already lost a series of defamation cases filed by parents of the victims by default after failing to produce documents and testimony.
But this was the first trial in which financial damages were agreed by a jury.
Jones appeared briefly in the court on Friday, but was not present for the final verdict.
Despite retracting his claims about Sandy Hook, Jones has continued to use his media platform to argue the case was rigged against him and claimed that members of the jury pool “don’t know what planet they’re on”. His Infowars website depicted the judge being consumed by flames.
His behaviour triggered several rebukes from the judge, who at one point told him: “This is not your show.”
After the verdict on Friday, he posted a video where he claimed his net worth to be a fraction of what was said in court, and condemned the trial as “beyond any kangaroo-rigged court ever”.
Jones – a popular figure in US fringe conservative commentary – has repeatedly argued that the Sandy Hook shooting was a hoax orchestrated by the government to strip Americans of gun rights, and that the parents of the dead children were “crisis actors”.
His lawyer had cited US constitutional free speech protections and asked for leniency in the trial, saying the jury had already sent a message to all radio hosts “that their standard of care has changed”.
The Chamber of Petroleum Consumers Ghana (COPEC-GH) has urged the government to immediately resolve pending Liquefied Petroleum Gas (LPG) issues with industry players to restore the supply of the product in the country.
It said the Ghana National Tanker Drivers Association (GNTDA); Liquified Petroleum Gas Marketing Companies (LPGMCS) and the Ghana Liquefied Petroleum Gas Operators Association (GLIPGOA) had withdrawn their services effective yesterday because their concerns had lingered for a long.
A statement issued in Accra yesterday by COPEC Executive Secretary, Duncan Amoah, said consumers would continue to bear the brunt as all LPG outlets remain non-operational.
It said the concerns of the industry players included general welfare and a ban on all new LPG sites which has affected their operations and finances over the past five years.
Touching on the genesis of the problems, it said after the Atomic gas explosion about five years ago, the NPA under its former Chief Executive, HasanTampuli, directed the freezing of the permits of a number of stations under construction.
“Several years down the line and this ban is yet to be lifted thereby leaving the various companies who had invested heavily in the construction of these retail points heavily debt distressed as they are constantly harassed by their banks and other financial entities who had advanced various loans to put up these stations,†it said.
According to COPEC, the ban had led to about an 11 percent reduction in volumes for the operators over the past one year instead of a projected 15 percent increase year on year.
The statement said efforts by actors within the LPG space to get the issues resolved had all proven futile because authorities do not seem to understand the pressures the operators were going through.
“We call on the NPA under the leadership of Dr. Mustapha Hamid to ensure a speedy resolution of the deadlock between the operators and authorities to ensure the immediate reopening of these outlets across the country.
“We further call on the Energy Ministry to ensure all grievances of the various operators within the LPG space are attended to forthwith without fail as the looming pressures on the Ghanaian LPG user could only exacerbate with further delays in addressing these challenges,†it said.
The Oracle of Omaha has been sparring with the online brokerage platform since 2021. Until now, the fight has been over a difference in their philosophical views of the stock market.
At more than $440,000 per share, there typically isn’t a lot of trading activity around Buffett’s prized Berkshire Hathaway A (BRKA) stock: Between 2010 and 2020, an average of 375 shares were exchanged daily. Then, in February 2021, trading volume shot up to nearly 2,000 shares per day, where it’s remained ever since.
But research published last month by professors at University of California, Berkeley, Columbia Law School and Cornell University found that the turbo boost in trading hasn’t been the result of any superbuyer. Instead, volumes of the most expensive stock in the US have been artificially inflated by the way brokers like Robinhood report fractional trading.
The increases come from what researchers call “phantom, non-existent trading.” When a brokerage makes a private, off-exchange stock trade, like the fractional trades executed by Robinhood, they are required to report the trades to the Financial Industry Regulatory Authority as though they were for a full share. Under this “rounding up rule” an investment as small as 1/100th of a share in Berkshire Hathaway would count as a purchase of a full $440,000 share.
Researchers say that this “well-intentioned but misguided” FINRA rule has added an additional volume equivalent of more than a billion dollars a day to Berkshire Hathaway A shares. The reported phantom volume represents 80% of their daily trading volume.
DriveWealth, which processes stock trades for investing apps like Cash App, also reported fractional share trades in Berkshire to the FINRA database and drove up trade volume, the study found.
“The FINRA reporting rule for fractional trading has created significant distortions,” wrote the authors of the paper.
A FINRA representative told CNN Business that the agency “is already actively working on the issue, and is engaged in ongoing discussions with firms and regulators.”
Fractional trading brokerages like Robinhood, meanwhile, are “a fly in the ointment,” to Buffett, Robert Bartlett, a professor at the University of California, Berkeley School of Law and co-author of the study.
“Buffett wants to keep the price of his Class A shares high to attract long-term value investors,” he said. “Those aren’t the people buying these fractional shares, and so they are undermining his main vision for the stock.”
‘Adversaries’ of change vs. ‘casino’ groups
Buffett doesn’t mince words when speaking out against Robinhood. The brokerage is “a very significant part of the casino aspect, the casino group, that has joined into the stock market in the last year or year and a half,” he said at his Berkshire Hathaway shareholder meeting in 2021, referring to the recent meme-stock craze.
Charlie Munger, Buffett’s right-hand man, joined in at this year’s shareholder meeting, calling the brokerage’s business model “disgusting.”
Robinhood counters that it is “democratizing” Wall Street by creating an easily accessible trading platform that allows investors to engage in fractional trading, buying small percentages of stock shares.
“There is an old guard that doesn’t want average Americans to have a seat at the Wall Street table so they will resort to insults,” the company said in a statement last year.
“Adversaries of this future and of change are usually those who’ve enjoyed plentiful privileges in the past and who don’t want these privileges disrupted,” Robinhood added, saying that the “new generation of investors aren’t a ‘casino group.’”
Either way, Robinhood may have other troubles ahead.
Robinhood announced on Tuesday that it will lay off about 23% of its staff following a sharp decline in trading activity on the platform. This is the second round of layoffs this year and part of a broader reorganization effort led by CEO Vlad Tenev.
The curbs include the suspension of some fruits and fish imports from Taiwan, and exports of natural sand to the island.
China is Taiwan’s largest trading partner, with bilateral trade worth $273 billion last year, accounting for 33% of the island’s total trade with the rest of the world, according to the Taiwanese government.
Experts are also concerned about the impact escalating tensions between Taipei and Beijing may have on Taiwan’s semiconductor industry.
The self-governed democratic island of 24 million people is a global leader in the supply of semiconductor chips, which are a vital component for virtually all modern electronics, from cars to refrigerators to mobile phones.
In a separate statement, Chinese customs officials said the import suspension of citrus fruit is a result of “pest control” and “excessive pesticide residues,” and cited “Covid prevention” for the suspension on seafood imports.
China’s commerce ministry, meanwhile, suspended exports of natural sand to Taiwan, a key component for the production of semiconductor chips.
“Nancy Pelosi’s visit to Taiwan has triggered the expected ire of Chinese authorities,” said analysts from ING Group on Wednesday.
In response, Taiwan officials said China’s sand export suspension would have a “limited” effect and that Chinese sand accounts for “less than one percent” of its total demand.
China has previously banned imports of some Taiwanese products amid escalating tensions. Last year, China banned imports of pineapples from the island followed by some types of apples later in the year citing “pest control.” Earlier this year, it also banned Taiwanese grouper fish, a high-value seafood product from Taiwan, citing detection of some banned drugs.
Beijing’s recent announcements coincide with Pelosi’s trip to Taiwan, the first visit by a sitting speaker in 25 years, and after Beijing issued stern warnings that it would take countermeasures in retaliation.
The country’s military said after Pelosi’s visit that it was launching a series of “targeted military operations to counteract the situation.”
At a press briefing on Wednesday, a spokesperson for China’s Ministry of Foreign Affairs said that “the US and Taiwan separatist forces must take the responsibility and pay the price for the mistakes they made.” Her comments came after she was asked whether the latest export suspension are intended to punish Taiwan for Pelosi’s visit, which she declined to answer directly, saying “please ask relevant department in charge.”
Pelosi’s visit comes at a tense moment for China.
The Communist Party will undergo a leadership reshuffle at its 20th party congress this fall. President Xi Jinping is expected to seek a historic third term in power at the meeting.
Domestic tensions are high as the country’s economy has slipped to the lowest growth in more than two years amid rigid Covid lockdowns and a slumping property market. Youth unemployment has soared to the highest on record. Social protests are rising because of a nationwide mortgage crisis and a series of rural bank scandals.
Impact on global supply chains
Traders and analysts are worried about an escalation in China-Taiwan tensions and their impact on the global supply chain and inflation outlook.
Global markets tumbled Tuesday, with major stock indexes closing in the red and safe-haven currencies surging. On Wednesday morning, Asian markets rebounded a bit, but risk sentiment remains muted.
“China’s response to Pelosi’s trip to Taiwan could have an impact on supply chains and demand, which could keep the inflationary pressures going strong,” said Edward Moya, senior market strategist for Oanda, on Wednesday.
Global supply chains have already been rattled by the pandemic and the war in Ukraine. The World Bank said recently that many countries are experiencing double-digit inflation.
Any conflict in Taiwan, which is key in supplying the world with semiconductors, could exacerbated the global chip shortage that has already strained the global auto industry. The Taiwan Strait is also an important shipping lane for vessels carrying goods between Asia and the West.
Taiwan Semiconductor Manufacturing Company is the world’s largest contract manufacturer of chips and plays a critical role in powering products designed by tech companies like Apple, Qualcomm and Nvidia.
In an interview with CNN this week, TSMC chairman Mark Liu said a war between China and Taiwan would make everyone lose. “If you take a military force or invasion, you will render TSMC factory not operable,” he said.
TSMC is one of Asia’s most valuable companies, and accounts for 90% of the world’s super-advanced chips.
Eurasia Group analysts, meanwhile, expected Beijing to conduct an “unprecedented” show of military force in the Taiwan Strait, along with cyberattacks, economic sanctions, and diplomatic protests.
“The immediate effect on clients will be a moderate but likely temporary disruption of supply chains that traverse the waters around Taiwan, as planes and ships reroute to avoid [People’s Liberation Army] exercises,” they said in a report on Wednesday.
“The lasting impact” will depend on the duration and intensity of the episode, though at the very least it will prompt further planning and contingencies around supply chain disruptions, including for semiconductors, by firms and policymakers, they added.
“The potential for crisis may not abate soon,” they said, adding that China could unveil further responses in coming days, weeks, and even months as the 20th party congress approaches.
China’s embattled property giant Evergrande has failed to deliver a preliminary debt restructuring plan it had promised by July 31, leading to further concerns about the future of the world’s most indebted developer.
The real estate company’s failure to meet its self-imposed deadline comes at a time when China’s entire property sector is dealing with a growing mortgage boycott and slumping housing sales.
According to an exchange filing on Friday, Evergrande offered instead some details on ‘preliminary restructuring principles’ for its offshore debt, and said it aims to announce “a specific offshore restructuring plan within 2022.”
Evergrande, China’s most indebted developer with $300 billion in liabilities, has been at the heart of the country’s real estate troubles since last year. It defaulted on its US dollar bonds in December after scrambling for months to raise cash to repay creditors, suppliers and investors.
To contain the fallout, the Chinese government has intervened to take a leading role in guiding the company through a restructuring of its debt and sprawling business operations.
In Friday’s filing, Evergrande said it has made “positive progress” in its offshore restructuring process, but added that it’s still working with creditors and advisers on conducting a due diligence of the company.
“Given the size and complexity of the Group and the dynamics the Group finds itself in, the due diligence process remains ongoing,” it said, adding that the work might be completed in the “near future.”
The lack of a concrete proposal highlights the uncertainties surrounding Evergrande’s opaque restructuring of its huge debt and sprawling business operations at a delicate time for China’s property sector and economy.
International creditors had complained earlier this year that they had been left completely in the dark about the companies intentions.
After creditors demanded updates and threatened to take legal actions, Evergrande pledged in January that it would release “a preliminary restructuring proposal” within six months. In June, it assured investors that it was on track to deliver the plan by the end of July.
The development comes at a difficult time for China’s property sector, which has been struggling with a steep fall in home prices, weakening buyer demand, and a series of debt defaults by real estate firms.
China’s economy has also slowed dramatically after strict Covid lockdowns dampened demand and disrupted industrial activities. Gross domestic product expanded 0.4% in the second quarter, the lowest growth rate since early in the pandemic. Analysts are worried that the government’s 5.5% annual growth target might be out of reach.
Why is Evergrande important?
Evergrande is massive — it has about 200,000 employees, raked in more than $110 billion in sales in 2020, and owns more than 1,300 developments in more than 280 cities. Many of its property projects have been delayed since last year because of the company’s liquidity issues.
Analysts have long been concerned that a collapse of Evergrande could trigger wider risks for China’s property market, hurting homeowners and the broader financial system. Real estate and related industries account for as much as 30% of GDP.
Since Evergrande’s default, several other major developers, including Kaisa, Fantasia, and Shanghai-based Shimao Group, have also sought protection from creditors.
In recent weeks, the real estate crisis has escalated further. Thousands of angry homebuyers who had previously paid down payments for unfinished projects threatened to stop paying mortgages if construction is not completed in time. Some of them have staged protests in central Wuhan city, pressuring local government and banks to help push developers deliver their prepaid homes.
“The mortgage boycotts are a double threat to developers and to the housing market,” said analysts at Capital Economics in a report late last month.
They have drawn attention to the problem of cash-strapped developers being unable to complete properties that they have already sold, which is “putting off new homebuyers.” The boycotts have also made banks more cautious about issuing mortgages, which could dent property sales further, they added.
In a report last week, S&P Global Ratings estimated China’s property sales could drop by a third this year because of mortgage strikes, as people believe developers won’t be able to complete presold units in time— the most common way they sell homes in the country.
“Without sales, many more developers will collapse, which is both a financial and an economic threat,” said Capital Economics analysts.
Among other things, he touched on government’s ‘Ghana Beyond Aid’ agenda which he believes to be fading away and does not find expression in formal presentations such as the budget and speeches delivered by the president.
“To begin with, I support this vision for Ghana because it will promote self-reliance that would lead to greater prosperity of our citizens. I am a supporter of “Ghana Beyond Aid†without reservations,” Dr Ndoum said.
“My concern is that this vision may become a mere slogan,” he opined.
Ghana Beyond Aid: My Recommendations To Walk the Talk
“Ghana Beyond Aid†is a vision put forth by your Administration. You have articulated this forcefully and pushed it in presentations to Ghanaian citizens. You have also stood your ground on this with foreign leaders particularly those from the western divide of global governance. Many have hailed it and bought into it as a very necessary agenda.
Recently though, the vision seems to be fading and does not find expression in formal presentations such as the budget and your own speeches at home and abroad. It is time to light some fire under this vision and make it real.
To begin with, I support this vision for Ghana because it will promote self-reliance that would lead to greater prosperity of our citizens.
I am a supporter of “Ghana Beyond Aid†without reservations.
My concern is that this vision may become a mere slogan. Over the years, Ghanaians have heard “the private sector is the engine of growth†with no fuel to make the engine move for the benefit of the people. They have been presented with “Zero Tolerance for Corruption†and “Probity, Accountability, Transparency†and yet corruption is seen by citizens as the main barrier to their well-being. Many leaders, in business and politics have put out their versions of “Ghana First†visions yet there is no common agenda to work with to make it come alive.
When the late General Ignatius Kutu Acheampong championed the Ghanaian ownership of the commanding heights of the economy, it spawned concrete actions that are still delivering benefits to the state and its people. “Operation Feed Yourself†was and remains a popular policy from the Acheampong era.
Given where we are, the following are actions I highly recommend for you to consider implementing to push the “Ghana Beyond Aid†vision.
All infrastructure contracts signed by the state must have a minimum 25% of value go to an indigenous Ghanaian and his/her enterprise.
All Cocoa roads and projects funded by COCOBOD must be given to indigenous Ghanaians and their companies.
Ban completely, the importation of chocolate, soft drinks, fruit juices, fruits, poultry and meats.
Ban the importation of rice and sugar.
Immediately ban the serving of any imported food or drink at all state functions.
School feeding programmes must only use locally produced food and drinks.
Take firm steps to ensure indigenous Ghanaian control (ownership) of the financial sector – banking, insurance, investment, pension and others at all levels.
All professional services agreements – architectural, technology, financial etc., must have at least 25% indigenous Ghanaian participation.
All new and renewed concessions for gold, bauxite, oil and gas, diamond, timber must have a minimum of 25% indigenous Ghana ownership.
The digitalization agenda must be placed firmly, 100% in the hands of indigenous Ghanaians and their companies.
Give full rights and recognition to Ghanaians who by necessity have become citizens of other countries – to vote, be employed by the state and compete for elective offices.
Will this hurt? Initially, yes. But eventually, we will be a better country, one whose citizens can aspire to prosperity with confidence.
I would appreciate the opportunity to discuss the recommendations further.
Presented, Your Excellency, for your consideration.
Education think tank, African Education Watch, is demanding what it calls further details on specific strategies being deployed by the Ministry of Finance to clear the over three hundred million debt owed food suppliers.
African Education Watch says Finance Minister, Ken Ofori-Atta during the mid-year budget review, missed an opportunity to give fine details of interventions being put in place by his Ministry to resolve the poor disbursement of approved funds for feeding under the Free Senior High School (SHS) programme.
Speaking to Citi News, the Executive Director of African Education Watch, Kofi Asare indicated that strategies should be made known to stakeholders, to avert a widespread shortage of food in public second-cycle schools.
“The main cause of the food supply disruptions is the GH¢340 million owed the Buffer Stock and by extension owed the suppliers under the Free SHS program.â€
“We thought that, the Minister of Finance had to explain why the Ministry is unable to disburse cash in accordance with cash flow projections by the Ministry of Education and more importantly what is being done to ensure that there is cash flow so that the academic calendar is not disrupted because of the lack of food.â€
Kofi Asare also alleged that there are inconsistencies in the expenditure figures on the Free SHS put out by the Finance Ministry and the Education Ministry.
He called for clarification on the expenditure.
“We want the Minister of Finance to come and clarify what the actual expenditure on the Free SHS is from inception to 2021 because data credibility on the expenditure is very important for policy accountability.â€
“The state of affairs is quite a painful one for me to report to you, it is hard to see our people lament about the prices of basic commodities, these are difficult times for government and indeed, for the Finance Minister . . . we know things are hard but we have a plan to guide us,†he averred.
According to him, “Towards 2022 Russia invaded Ukraine, a situation that worsened the already weakened global supply chain exacerbated by high conditions. These have had a debilitating toll on the cost and standard of living of our people. Mr Speaker, food prices are rising, fuel and transport fares are up, the cost of borrowing for businesses and for households has increased, the cedi has depreciated and the economic outlook has dipped significantly.â€
We Shall overcome
The Finance Minister is however confident that “we shall overcome” every difficulty facing the country.
“It’s amazing how we can find humour in the most difficult situation that keeps our spirit alive . . . these are not what we desired but we believe in the overcoming spirit of the Ghanaian people . . ” he stated.
Adding, “we believe together we will overcome challenges that lie ahead of us . . . with discipline dedication and hard work, we will overcome the challenges . . . we have done it before and we will do it again”.
Government has hinted at the re-introduction of roads tolls, to rake in revenue to cover the cost of expansion and rehabilitation works on the Accra-Tema Motorway.
According to Finance Minister, Ken Ofori-Atta, government in line with the Public Private Partnership Act, 2020 (Act 1039) will establish a concession agreement between the Ghana Infrastructure Investment Fund (GIIF) and the Roads and Highway Ministry to sponsor the 27.7-kilometer project.
He disclosed this while delivering the 2022 mid-year budget review in Parliament on Monday, July 26, 2022.
Addressing the House, he stated that “the draft Concession Agreement (CA) between GIIF and MoRH is currently under review by GIIF, MoRH, the Office of the Attorney-General and Ministry of Finance.”
“When completed, the CA is expected to be approved by the PPP Committee, Cabinet and parliament. The completed road will be tolled to recover the whole life cost of the completed infrastructure as well as pay lenders and provide a return for equity investors.
“The Government of Ghana shall provide funding through GIIF to take equity in the Special Purpose Vehicle to be created by GIIF for the project,” he maintained.
Meanwhile, government, in 2021 scrapped the collection of road tolls in the country. The Finance Minister explained that in spite of the gains from the toll system, tolling points create unpleasant situations.
“Over the years, the tolling points have become unhealthy market centres, led to heavy traffic on our roads, lengthened travel time from one place to another, and impacted negatively on productivity,” he justified his claim.
The toll system was substituted with the Electronic Transaction Levy (e-levy) to rake in revenue to cushion the economy.
But in a latest development, Mr Ofori-Atta has revealed that government will toll all new roads constructed under such concession agreement (between the Ghana Infrastructure Investment Fund (GIIF) and the Roads and Highway Ministry).
With this, users of newly constructed roads would have to pay road tolls to use those roads.
The Finance Minister, Ken Ofori-Atta, has acknowledged the difficulties Ghanaians are going through due to COVID-19 and the Russia-Ukraine war.
“The state of affairs is quite a painful one for me to report to you, it is hard to see our people lament about the prices of basic commodities, these are difficult times for government and indeed, for the Finance Minister . . . we know things are hard but we have a plan to guide us,†he averred.
According to him, “Towards 2022 Russia invaded Ukraine, a situation that worsened the already weakened global supply chain exacerbated by high conditions. These have had a debilitating toll on the cost and standard of living of our people. Mr Speaker, food prices are rising, fuel and transport fares are up, the cost of borrowing for businesses and for households has increased, the cedi has depreciated and the economic outlook has dipped significantly.â€
We Shall overcome
The Finance Minister is however confident that “we shall overcome” every difficulty facing the country.
“It’s amazing how we can find humour in the most difficult situation that keeps our spirit alive . . . these are not what we desired but we believe in the overcoming spirit of the Ghanaian people . . ” he stated.
Adding, “we believe together we will overcome challenges that lie ahead of us . . . with discipline dedication and hard work, we will overcome the challenges . . . we have done it before and we will do it again”.
Finance Minister, Ken Ofori-Atta, has disclosed government plans to use the windfall from the country’s petroleum sector to fill revenue gaps and improve revenue generation.
According to him, the move forms part of broader fiscal measures government is adopting to help sustain the economy while holding engagements with the International Monetary Fund for an economic support programme.
Delivering the 2022 Mid-Year Budget Review in Parliament on July 25, the finance minister said, “Mr. Speaker, we have seen some major shifts in our budget assumptions compared to November, 2021, when we presented the Budget. These changes have led to reduced revenues, increased interest payments and changes in interest rates and exchange rates. However, we are committed to staying within the appropriation for 2022.â€
“In spite of the underperforming revenues and strong external headwinds, we are not seeking additional funds in this Mid-Year Review. We are determined to efficiently use the windfall from the upstream Petroleum Sector to make-up for our revenue shortfall and aggressively improve our revenues even as we rationalize expenditures,†he added.
Meanwhile, the finance minister during the presentation told lawmakers government will not be seeking additional funds in the 2022 budget.
He explained government was committed to staying within its appropriation for the 2022 financial year.
Finance Minister, Ken Ofori-Atta, has assured Ghanaians that government will soon stabilize the local economy.
According to him, the government is committed to being disciplined and working hard towards the recovery of the economy from its current woes.
Making this known in the 2022 mid-year budget review presentation in parliament on Monday, July 26, 2022, Ken Ofori-Atta said, “With discipline, dedication and hard work, we will overcome the current challenges that confront our nation.
“We are convinced we can do this again. We worked closely with Ghanaians to turn around the economic situation in 2017,†he added.
The Finance Minister indicated that government will manage the windfall from the petroleum sector to make up for the country’s revenue shortfalls.
He added that the government was committed to staying within its appropriation for the 2022 financial year.
Meanwhile, the government is seeking a financial bailout from the International Monetary Fund (IMF).
The IMF programme, when successful, will help the country restore its macroeconomic stability, as well as, safeguard debt sustainability.
IMF only a short term measure, Ghana needs a major structural shift – Ofori-Atta
The Minister of Finance, Mr Ken Ofori-Atta, has assured that the government remained focused on driving the economy out of the current economic challenges.
He said the government has a track record of navigating its way around the challenges and thus called on the citizens to have faith for a quicker return to stability.
The minister said the government was prioritising fiscal discipline, which involved sticking to agreed targets, cutting expenditures when revenues are underperforming and ensuring prudent spending to get value for money.
Presenting his sixth in the row mid year budget review to Parliament Monday (July 15, 2022), Mr Ofori-Atta sought to rally the nation behind the government in a march against the grueling high cost of living that is manifesting in soaring price jumps, a weak currency and low economic activities.
“With discipline, dedication and hard work, we will overcome the current challenges that confront our nation,†he said.
“We are convinced we can do this again. We worked closely with Ghanaians to turn around the economic situation in 2017,†he said.
In line with the commitment to fiscal discipline, the minister said revenue and expenditure targets for the year had been revised downwards to reflect the pressure that the remnants of the COVID-19 pandemic and the Russia/Ukraine crisis was impacting on the economy.
“Mr Speaker, in the immediate term, we will strengthen our focus on efficiency in our fiscal operations and transformation efforts.
To this end, we are aggressively improving revenue mobilisation by adopting more innovative and comprehensive approaches including technology, rationalising expenditures, adopting policies to address inflation, promoting production and improving productivity, including implementing the Ghana CARES and YouStart programmes and exploring innovative financing as illustrated by the recently approved US$750 million African Export-Import (Afrexim) Facility,†he added.
Then Governemt of Ghana has revised the country’s Gross Domestic Product (GDP) growth rate from 5.8 percent to 3.7 percent for 2022.
According to the Finance Minister, the revision of the GDP growth target and other macroeconomic variables is necessitated by the current economic hardships on the globe.
Delivering the 2022 mid-year budget review in parliament on July 25, Ken Ofori-Atta explained, “In the light of significate changes in the global environment and our own unique challenges, we have revised our economic growth estimate for 2022 to 3.7 percent, down from 5.8 percent as stated in the 2022 budget.”
The Finance Minister added that apart from the revised overall GDP growth rate, almost all other macroeconomic variables have been revised downward.
“… non-oil GDP growth of 4.3 percent down from 4.9 percent; end-period inflation of 28.5 percent, up from 8 percent. The overall deficit of 6.6 percent of GDP, down from 7.4 percent; primary surplus of 0.4 percent of GDP, up from a surplus of 0.1 percent and a Gross International Reserve of not less than 3-months import cover,” he told lawmakers in parliament.
He further stated that the overall GDP growth rate for the first quarter of 2022 was pegged at 3.3 percent, with the non-oil GDP growth rate being 3.7 percent.
The Finance Minister further disclosed that the overall GDP growth rate for 2021 was 5.4 percent compared to 0.5 percent recorded in 2020, and non-oil GDP growth increased to 6.9 percent compared to the 1 percent recorded in 2020.
Read the Minister’s full 2022 mid-year budget statement below:
According to him, this is part of efforts to beef up security and combat crime, in the wake of terrorism attacks in neighbouring countries.
“To further improve internal security, the Ghana Police Service has recruited and trained 5,000 additional officers to put more police in our streets and communities,” he said while delivering the 2022 mid-year budget review in Parliament on Monday, July 25, 2022.
Addressing the House, Mr Ofori reiterated government’s commitment to clamp down on crime and ensure the safety of the citizenry.
“Mr. Speaker, the safety of Ghanaians in the face of complex security threats is a major concern to Government,” he stressed.
“We are using a significant amount of resources to ensure that we keep our people and country safe. Considering what is happening in the West African region, it is important that we prioritise national security, and we have.
“Whilst it will not be prudent to disclose the full cost of ensuring the security of this state, let me emphasise that it is significant,” he maintained.
As part of efforts to clamp down on terrorism, government has introduced the “See something, Say something” campaign to sensitise the public on activities of terrorists.
To complement this effort, the Ghana Armed Forces (GAF) is implementing an enhanced surveillance programme for the country’s air space and international borders through collaboration with other domestic security agencies, Mr Ofori-Atta added.
“We are also aggressively pursuing the Forward Operating Bases (FOB) programme to improve response time and prevent cross border crimes as well as terrorist infiltration,” he said.
Finance Minister, Ken Ofori-Atta, has said a total of 295,000 Ghanaians were enrolled into the public sector.
He further stated that 84,000 new employees were being registered to be employed.
Speaking on the floor of parliament during the 2022 mid-year budget review statement, Ken Ofori-Atta pointed out that public sector workers received their full salaries during the peak of the global pandemic – coronavirus.
He further said the government will provide a 15% Cost of Living Allowance to public sector workers to cushion them in these challenging times.
“Mr Speaker, this government has kept fate of public sector workers. Not a single public sector worker employee was laid off as a result of COVID-19 pandemic. Employees receive their full salaries, with frontline workers receiving additional incentives,” Ken Ofori-Atta said.
“Since 2017, this government has employed an additional 295,000 Ghanaians in the public sector with it being the highest registering 84,000 new employees.
“In spite of the prevailing global economic upheavals and the resultant fiscal challenges, government continues to pay salaries of all public sector employees..and has committed to pay Cost of Living Allowance of 15%,” he added.
Cost of Living Allowance is the amount of money that an employee gets in addition to his or her normal pay.
This comes in handy when the cost of living in a particular country is high.
Minister of Finance, Ken Ofori-Atta, has assured Ghanaians that appropriate measures are in place to avert a potential food crisis in the country.
Delivering the 2022 mid-year in Parliament, he noted that these measures to forestall food insecurity included a temporary ban on grain (maize, rice, and soya) exports.
He pointed out that government will adopt the promotion and use of organic fertilisers on farms as well as the cultivation of crops such as roots, which require less fertiliser.
Ken Ofori-Atta said the government will also increase surveillance of food and input prices that will help pick early warning signals of potential food crisis in order to take prompt remedial action.
He, therefore, told lawmakers that other measures include; the finalisation of modalities for the haulage of produce from farm gates in food growing areas to the market centres by the government.
The minister during the presentation of the 2022 mid-year budget review said the emergency measures were necessitated by the COVID-19 pandemic and the Russia-Ukraine tensions, which combined to disrupt supply chains and increased transportation costs.
These, he said are threatening food security globally.
“But, what the people of Ghana care to see is what their government is doing about it to ease the impact here.
“To enable households and farmers cope and support stable food supply, Government has taken the following immediate measures:
* place a temporary ban on grain (maize, rice, and soya) exports;
* promote the use of organic fertilizers and cultivation of crops such as roots which require less fertilizer;
* monitor food and input prices to pick early warning signals of potential food crisis in order to take prompt remedial action; and
* finalise modalities for the haulage of produce from farm gates in food growing areas to the market centres,†the minister outlined.
Meanwhile, the finance minister during the presentation in parliament announced plans to increase investments in agriculture as well as support the youth to start agri-related businesses to help boost productivity while creating jobs.
