Kofi Tonto, the government’s spokesperson, has urged the administration to understand the plight of Ghanaians and find a better approach to work with bondholders on itsdomestic debt exchange programme (DDEP).
On Friday, February 10, Sophia Akuffo, a former chief justice, joined a group of pensioners picketing outside the finance ministry to protest the use of pensioners’ bond yields by the government.
Since Monday, February 6, the pensioners have been picketing outside the Ministry in an effort to be excused from the Program.
Speaking to the media, she described as “wicked” and “disrespectful” government’s decision to include pensioners in the Domestic Debt Exchange Programme (DDEP).
She said; “We are over 70 years now, I am no longer government employed, my mouth has been unguarded and I am talking and I am saying that we have failed and it is important that the elderly should be respected. I find this wicked, I find it disrespectful, I find it unlawful, I find it totally wrong.”
“These are all people who have worked, they have worked very hard, they could have left the country when others were going but they stayed, they worked for the nation…Quite a number of people here today, when they retired last two years they have put everything into government bonds, it is a contract and now all of a sudden, you virtually want to force them to agree with you that the repayment of the yield of their investment should be as you dictate it. Why?”
“Why are we in the mess? Nobody has fully explained to us, yes we took debt, what was it used for? and where is the accountability? Exactly what was it used for? You are not telling us about how you are going to be able to make things better but just that ‘help me and I help you’, no, you help yourself first, let me see you doing something serious because we have seen these sort of things too many times”, she added.
Tackling the matter, Kofi Tonto appeared lost for words that it has come to a point where a former Chief Justice appointed by President Nana Addo would join the crusade for the government to reconsider its decision.
“This is a woman who just about three or four years ago was the fourth in command in this Republic. It may be that her money is not part but rather her relative’s or that she feels for the ordinary Ghanaian,” he said.
He appealed to the Finance Minister, Ken Ofori-Atta, to heed the calls by the bondholders stressing “we should apologize to the bondholders. As a government, we have to listen to them. We have to empathize with them. We must do everything necessarily possible to bring them on board”.
He said this during a panel discussion programme on Peace FM’s morning show “Kokrokoo”.
The two-day event, which began last Friday, was designed to promote rice products with added value and link regional businesses with global partners in the rice value chain.
About 100 exhibitors, both from Ghana and beyond, attended the fair to promote their products, engage in conversation, exchange ideas, and network.
Additionally, the exhibition brought together stakeholders, buyers, and investors to promote the production and consumption of regional rice.
The event was organised by the Tamanaa Company Limited, in collaboration with GIZ, Competitive African Rice Platform (CARP), Yara Ghana, IDH and MasterCard Foundation.
Sustainable partnerships
Speaking at the event in Walewale, a Deputy Minister of Food and Agriculture in charge of Livestock, Mohammed Hardi Tufeiru, said although the government was doing its best to promote the production and consumption of local rice, the private sector held the key to the development of the domestic rice sector.
“The Government of Ghana, through the Ministry of Food and Agriculture, is partnering rice sector stakeholders to promote domestic rice production and consumption.
“There is the need to build sustainable partnerships and ensure that all stakeholders work tirelessly to reduce rice imports significantly by increasing domestic rice production,” he stated.
He said the theme for the fair was in line with the government’s agenda to transform the rice sector for economic growth and high incomes for farmers and other value chain actors such as agro-processing and agribusinesses.
He noted that the need to add value to products was a priority to sustain productivity and growth in the sector.
Strategic document
Mr Tufeiru indicated that the ministry, together with its partners, was developing a National Rice Development Strategy II (NRDS II), a strategic document for the development of the domestic rice industry.
The main objective of the NRDS, he said, is to the attain rice self-sufficiency through seven thematic areas, including Seed System; Fertiliser Marketing, Distribution and Usage; Post-Harvest Handling and Marketing; as well as Irrigation and Water Control Investment.
Ban on rice imports
The Chief Executive Officer of Tamanaa Company Limited, Shaibu Briamah, called on the government to ban the importation of rice into the country and encourage the production and consumption of the foodstuff locally.
He suggested to the authorities to increase tariffs on imported rice, to create market for locally produced rice, to increase the income of farmers to support the economy.
He lamented the low patronage of the local rice, saying “Even state institutions don’t patronise local rice, the Buffer Stock Company that is supposed to be patronising local rice is still owing suppliers, which is affecting business.”
The North East Regional Minister, Yidana Zakaria, encouraged rice farmers in the region to increase their output, since the area was endowed with arable lands.
He also encouraged them to engage in dry season farming to increase production.
The projects are an early childhood development centre for Zuarungu-Moshie at a cost of GH 287,000 sponsored by the Northern Development Authority and a health centre with a mechanised borehole built at a cost of GH 418,024.00 supported by the District Assemblies Common Fund (DACF) (NDA).
The other project is a three-unit classroom block with auxiliary amenities and furniture for the Dubila community basic school that is also supported by the NDA at a cost of GH450,000.
Speaking to the Daily Graphic at the end of separate handover ceremonies, the District Chief Executive (DCE) for Bolgatanga East, David Akolgo Amoah, said he was highly elated that the projects which were dear to his heart had been completed and handed over for use.
He stated that the projects would go a long way to improve healthcare delivery and education in the beneficiary communities, adding, “I admit that the schoolchildren obviously needed and deserved a better place to study to realise their aspirations.”
He noted that it was unacceptable for schoolchildren to be allowed to study in unfriendly academic environments, noting, “the government at all times will ensure that the right academic environment is provided to enhance teaching and learning.
“These school buildings can be compared to others in big cities and towns in the country, as they would offer a conducive learning environment for the beneficiary school pupils to study to become useful to the society in future.”
Other projects
While commending the contractor and the NDA for a good work done, he appealed to the NDA to as a matter of urgency, take steps towards the completion of two other school projects it was funding so they served their intended purposes.
“I wish to appeal to the NDA to see to the completion of a kindergarten classroom block at Dulungu and a junior high school block at Kantia, which are currently at various stages of completion,” he said.
“As an assembly, we will ensure that all stalled classroom block projects are completed towards the provision of dignified education to the school pupils for the ultimate benefit of the country,” the DCE said.
He noted that the health facility would enable health workers to provide quality healthcare services to residents within the centre’s operational areas, stressing, “this centre will deal timeously with medical conditions of the people, in a bid to improve their health needs.”
Other speakers
The District Director of Health Services, Alhassan Lawal, said the old building was not conducive for the provision of health care to the residents and indicated that his outfit would explore the possibility of having a laboratory service and consulting room in the facility.
He said “with this new facility, staff will not have any excuse not to stay in the community to render services to the people,” stressing “I want to assure the management of the district assembly that the facility will be put to good use to provide quality services to the people in the community and its environs.”
A deputy director in charge of planning at the district directorate of the Ghana Education Service (GES), Thomas Adiyuure Azuliya, expressed gratitude to the NDA and the district for facilitating the construction of the classroom blocks.
He gave an assurance that the GES would ensure judicious use of the projects and appealed to the NDA to pursue the contractor executing the Kantia JHS classroom block to complete the facility, since the school pupils were currently studying under a tree.
A community elder in Zuarungu-Moshie, Adobire Azure, in a remark, lauded the government for the projects and pledged the community’s support towards the maintenance of the projects.
When a 24-year-old unemployed guy was sentenced to 25 years in prison for harming others and attempting to rob someone, he received the shock of his life.
Lamin Sissy had already been found guilty of the accusations by the court at this point.
He received sentences of five years for inflicting hurt and twenty-five years for attempting to conduct a crime, specifically robbery, from the court presided over by Mrs. Sedinam Awo Balokah.
However, sentences must run simultaneously.
Handing the sentence, the Court said an attempt to commit a crime carries the same punishment as committing the crime.
It noted that the accused person now a convict used an offensive weapon (scissors) to harm the complainant, Christabel Sitor.
Sissy is said to have attempted to snatch a handbag worth GHS100, an Infinix Hot 10 mobile phone valued at GHS1,000 and cash of GHS100.
Sissy earlier prayed to the Court for mercy.
“I pray the Court to forgive me. I don’t know what came over me. I have no relations in Ghana,” he added.
The prosecution led by Inspector Gloria Ayim prayed the Court to give an accused person a stiffer sentence to serve as a deterrent to like-minded persons.
The case of the Prosecution is that the complainant Christabel Sitor is a resident of Mile 13 Adenta.
On June 2, 2022, the Prosecution said at about 9:20 pm, the complainant went to town and when returning home on a straight route, Sissy who had no permanent place of abode and had laid ambushed, spotted the complainant with her lady’s bag across her chest.
It said the complainant’s bag contained an infinix Hot 10 phone and a sum of GHS100.
The prosecution told the court that, Sissy on seeing the complainant, started trialling her to a distance and attacked her with a pair of scissors.
It said Sissy ordered the complainant to hand over her handbag.
The Prosecution said the complainant resisted and a struggle ensued between her and the accused person.
In the process, Sissy slashed the complainant’s left hand with a pair of scissors.
The Prosecution said the complainant raised an alarm and Sissy took to his heels.
It said the complainant’s shouts attracted people to the scene. Sissy however escaped and hid in the bush.
Whiles lodging a complaint, a witness in the case who pursued Sissy managed to nab Sissy and escorted him to the Police Station.
The prosecution said the accused person admitted the offence and led the Police to the crime scene.
Lord Marland, the CWEIC’s chairman, has recommended the nation to step up efforts to add value to its produce.
He claimed that value addition and processing are key problems that the nation must address in order to harness commerce and hasten economic recovery in the face of the ongoing crisis. By doing this, the emphasis will shift from strong reliance on imports to self-sufficiency.
“The way out for Ghanais the way out for every country’s growth – investing in trade and I am very encouraged with what I have seen. Processing produce here and not just exporting and then bringing imports back as refined products but involving in the whole process to create employment and prosperity is key,” Mr. Marland, who is on a working visit, told the B&FT in Accra.
The CWEIC boss noted that as more countries across the world ease restrictions, paving the way for people to travel outside their countries again, there is the need to build and strengthen capacity to leverage trade to spur economic growth.
“My role is to engender trade and investment across the 56commonwealth countries and therefore, I believe our role is important as the world gets back into traveling, into globalization which has not happened in the last two years; people and countries have looked inward rather than outward and now recognise that we need to look outward to develop trade for growth and prosperity, to get the engine of each country going again,” he said.
“I have interacted with a lot of stakeholders and I have realised the desire to start looking outward. I see a lot of opportunities. We are determined to help Ghana in every possible way to regain that prosperity and growth it expected before these terrible global events,” he added.
Senyo Hosi, the convener of the Individual Bondholders Forum, has urged holders of pensioner bonds to forgo joining the domestic debt exchange scheme rather than put themselves through the anxiety of picketing the Finance Ministry.
He believed that since the Finance Minister had provided the option of self-exemption, it would be better if bondholders took it.
He said, “I sometimes get lost as to what the pensioners are looking for. We are looking for a total exemption, the Finance Minister, Ken Ofori-Atta, has categorically said we can self-exempt. So what exactly are we looking for again from the Finance Minister? You have the decision to choose, I think individuals and pensioners have the option to stay out or not. If the deal doesn’t work for you, exempt, if it does fine. I don’t think picketing, shouting, and screaming will solve that problem. I will encourage all pensioners to self-exempt, there’s no need to scream, self-exempt now.”
The Pensioner Bondholders forum has been picketing the Finance Ministry since Monday, February 6, 2023, to demand a total exemption from the domestic debt exchange programme.
According to the group, it is unfair to be included in the programme.
Also, the lead convener of the group, Adu Anane Antwi, stated that voluntary participation is not the same as a total exemption.
According to him, this may cause problems for them in the future.
“In the future, the government can say that you did not take the restructuring. I already told you that I may face some challenges meeting the obligation so let us restructure and you refused. So if you go there, you become a part of it. If you decide not to take part, you already know,” he said.
TheCommonwealth Enterprise and Investment Council’s (CWEIC) Chairman, Lord Marland, claims that the inability of Ghanaian companies to develop abroad is due to a lack of successful partner searches in other nations.
Speaking to Class News, Lord Marland said CWEIC was created to assist member companies in finding the best partners in other nations, and it was one of the reasons he travelled to Ghana.
“The reason why it’s difficult for businesses to export, or to trade beyond Ghana is that, if you’re a business, it’s uncertain about whether you are going to find the right partner in another country to work with. The right lawyer, the right accountant, for a start. So, if you’re a business that’s thinking about exporting, you are thinking, you know, I want to export to India, for example. Who am I going to work with in India? How am I going to set myself up? What are the tax implications? What are all the rules? And that’s where we help as an organisation.” Marland said.
He further explained “That’s why when people want to import to Ghana, we have people on the ground here who can help them reduce that risk and of course, Ghana is a great exporting country with lots of things. So it is done, however, people have to be supported in the process, which is what we do at the Commonwealth Enterprise and Investment Council.”
Dr. Cassiel Ato Forson, the minority leader and ranking member of the finance committee in parliament, began his legislative duties this week by advocating that tax waivers be stopped in order to save the economy much-needed money in light of the current economic difficulties.
The World Bank has encouraged the government to stop using certain of its tax exemptions and other tax-related activities while improving the effectiveness of tax collection. Ghana offers far too many tax exemptions for a nation that desperately needs to raise money to lower its debt-to-GDP ratio.
It provides for a tax exemption regime in the country with defined criteria for exemptions, and was expected to save the economy GH¢460million in 2022 according to Minister of Finance Ken Ofori-Atta.
However, as the country faces mounting economic challenges, Ato Forson believes government should halt all forms of tax waivers to companies in a bid to raise additional revenue to support the recovery process.
Given the downturn in economic activity along with rising public expenditure, the Ranking Member of the Finance Committee is confident that such a move would be apt. His remarks were in response to a question regarding public perception about huge sums that the country loses annually through exemptions.
Though the country has saved some funds since passage of the Tax Exemptions bill last year, Dr. Forson notes that there is a need for further scrutiny to identify gaps in the regime and improve on them in order to save more.
Finance Minister Ken Ofori-Atta noted that in 2020 alone about GH¢1.8billion was lost, the worst recorded for a single year since 2008.
Although it is important for Ghana to use tax exemptions for attracting foreign investors into the country, empirical evidence has proven that too many tax exemptions have failed to provide the desired result.
Ghana loses over GH¢5billion every year through tax exemptions, that’s why tax consultant and attorney Ali-Nakyea and Associates urged government to take a second look at the tax exemptions régime if it means to rake in more revenue for the state.
Indeed, the country has chronically struggled to mobilise enough revenue to fund its expenditure requirements. It is therefore proper to explore all the avenues to raise more revenue, and limiting tax exemptions is one such way.
Business consultant Nana Akwesi Bonsu has urged entrepreneurs in the nation to refrain from doing projects that are outdated in the changing world of today.
Instead, according to Mr. Bonsu, the CEO of My Story Magazine, businesspeople need to be flexible and able to supply new goods and services or create fresh organisational frameworks to boost their operating capabilities.
Speaking to the media in Accra, the CEO stated that innovation and technology adoption are no longer an option but rather a must for entrepreneurs: “Create a niche for your business, adjust to current or future innovations, learn new inventions and build up new systems and structures for your businesses. Don’t underestimate the power of technology; and above all, have the mental capacity.”
No rosy journey
Mr. Bonsu said entrepreneurship is not a rosy journey, and that a tough-minded approach is needed to create an avenue that will help society.
“Nonetheless, mental fortitude, a wealth of knowledge, understanding your essence for the establishment, and having the wisdom to ride your idea are very essential in this instance.
“Amid the current economic crisis and global recession, there is also a place for individuals who have mastered their craft to also survive,” he said.
Tax exemptions
According to him, government should support entrepreneurs by creating opportunities such as tax exemptions on specific consumable goods and services.
He said there should be a system that financially supports business owners to help them expand their operations.
He said government must take deliberate steps to patronise small-scale businesses, especially for locally-produced goods and services.
Mentorship
He explained that mentorship for entrepreneurs is now very essential, and therefore startups and anyone interested in business should make an effort to have mentors.
“Individuals who are giants in our industries must also avail themselves to teach upcoming entrepreneurs. They shouldn’t see them as threats or competition, but rather as a medium to pour out their experience and help the upcoming ones become more productive and efficient.
“Partnership, on the other hand, is also key. Most people from our side of the world do not consider partnerships in business, which isn’t the best. People must come together to create businesses that will profit all parties,” he said.
My Story Magazine
Mr. Bonsu noted that the My Story Magazine’s focus is on telling their stories and putting a spotlight on entrepreneurs, startups and change-makers across Africa.
He said the publication ultimately gives people an opportunity to tap into the brains and experience of business leaders, start-ups, entrepreneurs and experts to learn their strategies, what motivates them and all the challenges they faced and continue facing in the path they chose.
“By telling the stories of individuals and organisations from different perspectives and from across all regions of the continent – west, east, south, central and north – we believe it is only by collective action and innovation-sharing across the regions that we can help Africa solve its deepest challenges,” he added.
Ahead of this year’s chocolate day (Valentine’s Day) celebration, some Ghanaians, especially consumers and traders, claim they are feeling the effects of the current economic crisis on their purchasing power.
In Ghana, February 14 is celebrated as Chocolate Day as part of efforts to raise awareness of and demand for cocoa goods. Valentine’s Day is a day set aside each year to celebrate love among people.
In less than a week, Ghana will join the rest of the world in celebrating the day, which is characterised by the exchange of presents, mainly flowers, teddy bears, and chocolate.
During this period, chocolate and bouquet of flowers often see high patronage, but traders and consumers alike, have started complaining about the prices of items to mark the day, with wholesale and retail prices, which saw a sharp rise.
Madam Vivian Anku, a trader, told the Ghana News Agency (GNA) that business had started slow ahead of this year’s Valentine’s season due to the high cost of the items.
Madam Anku said: “We are not seeing any positive signs this year because the gift items are expensive. Our customers keep complaining but it is not our fault, the depreciation of the cedi has affected everything including valentine’s gifts.”
Teddy bears that we used to sell for GHS10 are now GHS15 above. Even the GHS15 is the smallest one. Most of the items you are seeing here are old stocks, we’re yet to bring the new stocks, so by all means, the prices will increase again.”
Appiah Mavis, a shopper, who lamented about the price of valentine’s items said: “Just last year, I bought moonflower at the price of GHS70, but now, it’s about GHS150, which I am surprised about.”
Miss Abigail Mensah, who was in town to get some items for valentine said: “The prices of rose flowers have increased from GHS30 to GHS40 due to valentine’s season, but I can’t say I won’t buy it because I have to.”
I am tempted to say these traders went for a meeting before this month because so far, the shops I have been to have the same prices and right now I am tired and I do not think I can go further,” a bulk buyer, told GNA.
Ghana’s economy suffered hikes in prices of goods and services due to inflation, depreciation of the Cedi and fuel, with the ravages of the COVID-19 pandemic and the Russia-Ukraine war being high contributors to the situation.
Matters of the table have certainly taken precedence over fun and romance as Ghanaians wade through economic difficulties that may have numbed their taste buds for what is beautiful and the lovely but not tangible.
To promote transit trade between Ghana and Burkina Faso, the Burkina Faso Shippers Council erected an ultramodern office facility at the Tema Port enclave.
The office was constructed, according to Al Hassane Sienou, the board chairman of theBurkina Shippers Council, as part of a significant infrastructure project that the Council’s governing body undertook under its strategic growth plan.
The office building would improve the Shippers Council’s operations and assist it carry out its purpose, according to Mr. Roland Somda, the Burkinabe Minister of Transport.
The mandate includes ensuring regular supply of products and goods to Burkina Faso in the best conditions pertaining to cost, speed, and security.
The Council also assists shippers and protects their interests, which contributes to the competitiveness of Burkinabe export products on the international market, among others.
Mr Frederick Obeng Adom, Ghana’s Deputy Minister of Transport, called for a strengthened collaboration toward the shared objectives of both countries.
This is line with the African Continental Free Trade Area(AfCFTA) objectives, which aimed at, but not limited to, reducing poverty and shared prosperity among member countries.
Mrs Sandra Opoku, the Director of Tema Port, gave the assurance that the Ghana Ports and Harbours Authority (GPHA) would continuously improve on all measures to sustain the transit trade.
The GPHA began with the provision of lands to the transit representatives to build offices and warehouses to support their administrative and operational activities.
She said in a bid to reduce the cost of doing business in Ghana, especially for the transit customers, the GPHA granted rebates on its cargo volumes, and 21 days rent-free for all transit cargo, with automated ports processes to reduce delays.
Politicians are frequently buddies, despite their differences in ideologies or guiding principles, as has been said numerous times.
They still appear to find time to gather around the same tables and literally share bread after the outward displays of differences, apparent hatreds, and occasionally dangerously close calls.
When two prominent members of the rulingNew Patriotic Party (NPP) recently met on one of the main avenues in Koforidua, in the Eastern Region, it was such a circumstance.
The meeting between the immediate-past Minister of Trade and Industry, Alan Kyerematen, and a former Minister of Energy, and one-time campaign manager of the Nana Addo Dankwa Akufo-Addo, Boakye Agyarko, is one that has gotten many netizens talking.
In a video clip that has been shared on social media,Alan Kyerematen, who recently announced his intention to run as flagbearer of the NPP, is seen stepping out of his vehicle, mobbed by some few people, as he walks heartily to shake the hands of Agyarko.
In their interaction, Agyarko, who is also eyeing the same seat as NPP flagbearer, kind of called out Alan for visiting his township and refusing to ask of him.
But in his response, Alan indicated that he is headed for Krobo and that his colleague should wait for him there, amidst laughter.
The following is their interaction in Twi, and interpreted into English by GhanaWeb:
Agyarko: “Ah, you are in my township and…”
(The two laugh heartily)
Alan: “What I was saying was that I am heading to Krobo. Wait for me there.
Agyarko: “Where is your visa?”
(The two again laugh heartily and playfully)
According to details from dailyguidenetwork.com, the two were in Koforidua on Friday, February 10, 2023, as part of their campaign in the region, although Boakye Agyarko was the first to go to the region.
The NPP is yet to announce dates for its flagbearer race.
There are 1,622,718 Ghanaians who are 15 years or older are cohabiting or living as married couples informally.
According to the Ghana Statistical Service (GSS) 2021 Population and Housing Census report, about 8.2% of the country’s population 15 years and older live together as married couples, but in actual sense are not married.
Of the 1.62 million cohabiting, 46.2% are males while the remaining majority are females – 53.8%.
A disaggregation of the data at both urban and rural levels shows about 6.8% of Ghana’s urban population 15 years and above cohabitate while the rate is relatively higher at the rural level- 10.1%, which is significantly greater than the national average of 8.2 %.
At the regional level, Ashanti region topped with about 348,045 people cohabiting followed by the Greater Accra region with 294,795 while North East recorded the least – 9,239 which is about 37 times smaller than what was recorded in the Ashanti region.
The latest data from the 2021 Population and Housing Census (PHC) also revealed that 553,065 persons in Ghana have had their marriages dissolved while 405,090 have separated.
On Thursday, February 16, 2023, Minister of Finance Ken Ofori-Atta is expected to address the legislature and discuss the Domestic Debt Exchange Programme (DDEP).
The Deputy Majority Leader, Alexander Kwamena Afenyo-Markin, made this known on Friday, February 10, 2023, when he presented the Business Statement for the coming week to the House.
This comes after the Speaker of Parliament,Alban Bagbin’s ruling, following calls by MPs to summon the finance minister to furnish the House with details of the programme.
The MPs, earlier this week, argued that it is unacceptable for parliament and the general public not to have been furnished with the full details of the DDEP, a situation they say continues to fuel anxiety about the exercise.
MP for North Tongu, Samuel Okudzeto Ablakwa, had earlier noted that the government is acting contrary to what the finance minister had promised in the 2023 budget, announcing the details of the debt exchange programme before its implementation.
The failure, he said, has led to some challenges in its implementation, including the recent picketing by affected pensioners and individual bond holders at the ministry.
“Ghanaians are genuinely concerned about their life savings and investments, and this House is yet to be briefed. We have not debated this programme and yet the Ministry of Finance is going ahead to implement this debt exchange programme which they say is a condition for the ongoing IMF engagements.
“The Minister of Finance must appear before us and we must debate and agree exactly what should be the nature of this Domestic Debt Exchange Programme, who should be exempted and the implications – what are the full ramifications on the Ghanaian economy and on the affected citizens who are currently living in anguish, in pain and great anxiety,” he said.
The representative for Nsawam-Adoagyiri, Frank Annoh-Dompreh, believes that Ken Ofori-Atta, the finance minister, can restore Ghana’s economy.
According to the MP calls by some of his colleagues in parliament for the president to dismiss the finance minister will rather stagnate the efforts of government to restore the economy.
Speaking in an interview on Badwam on Adom tv, Annoh-Dompreh noted that the finance minister should be allowed to work as he revives the Ghana economy.
“I think we are making progress. The times dictate that we should be at peace with each other. Before I say anything it means I have spoken to people. Now it appears things are getting better so we have to keep things running,” the Majority Chief Whip said.
His statement comes on the back of a call by the Member of Parliament for Asante Akim North, Andy Appiah-Kubi for president Nana Addo Dankwa Akufo-Addo to honour his promise to fire Ken Ofori-Atta.
Ofori-Atta was untouched in a recent ministerial shakeup that saw Akufo-Addo nominate seven persons for ministerial and deputy positions in his government.
Annoh-Dompreh also called on the NPP in parliament to unite in breaking the 8 in the 2024 election by allowing the finance minister to retain his office.
“We are ready to break the 8 but we need unity among ourselves, “he said.
The majority chief Whip who has openly declared his support for the Vice President believes the majority in parliament should look at the larger picture of the 2024 general election, though he respects the views of those calling for the removal of the finance minister.
The assertions of Annoh-Dompreh have been shared by some members of the majority who are confident the finance minister should be allowed the fix the economy rather than replace him.
Frank Annoh-Dompreh, a member of parliament for Nsawam-Adoagyiri, believes Ken Ofori-Atta, the finance minister, can jumpstart Ghana’s economy.
The MP claims that requests from some of his parliamentary colleagues that the president fire the finance minister will do more to stall the government’s efforts to revive the economy.
Annoh-Dompreh stated during an interview on Badwam on Adom TV that the finance minister should be permitted to continue working as he revitalizes the Ghanaian economy.
“I think we are making progress. The times dictate that we should be at peace with each other. Before I say anything it means I have spoken to people. Now it appears things are getting better so we have to keep things running,” the Majority Chief Whip said.
His statement comes on the back of a call by the Member of Parliament for Asante Akim North, Andy Appiah-Kubi for President Nana Addo Dankwa Akufo-Addo to honour his promise to fire Ken Ofori-Atta.
Ofori-Atta was untouched in a recent ministerial shakeup that saw Akufo-Addo nominate seven persons for ministerial and deputy positions in his government.
Annoh-Dompreh also called on the NPP in parliament to unite in breaking the 8 in the 2024 election by allowing the finance minister to retain his office.
“We are ready to break the 8 but we need unity among ourselves, “he said.
The majority chief Whip who has openly declared his support for the Vice President believes the majority in parliament should look at the larger picture of the 2024 general election, though he respects the views of those calling for the removal of the finance minister.
The assertions of Annoh-Dompreh have been shared by some members of the majority who are confident the finance minister should be allowed the fix the economy rather than replace him.
The recently-retired Chief Justice of the Republic of Ghana, Sophia Akuffo, has urged the Minister of Finance, Ken Ofori-Atta, to revise his plans and come up with a strategy that will exclude bondholders.
“The Minister of Finance had better go back to the drawing board and come back with a better proposal, otherwise nobody is going to… I am encouraging people not to agree to sign up for anything, and if need be, we can all go to court,” she said.
Sophia Akuffo said this when she joined pensioners who are picketing at the finance minister’s office against his decision to include the investment of pensioners in the government’s Domestic Debt Exchange Programme.
The pensioners have vehemently rejected the move, stating that they do not want their monies included in the programmebecause they survive on the returns on such investments.
The former Chief Justice, who clarified that she was not affected by DDEP, said she was there in solidarity with her fellow retirees.
She stressed that these retirees have served the nation well and do not deserve the treatment they are being given.
“These are all people who have worked. They have worked very hard. They could have left the country when others were going, but they stayed and worked for the nation. And we’ve had our ups and downs and everything… We have been through times when all your savings have become nonsense due to some government policy… quite a number of people here today when they retired, they put everything in government bonds,” she added.
Ghana is seeking an IMF bailout of $3 billion, but the Fund wants to be sure that the government’s debts are sustainable, hence the voluntary Domestic Debt Exchange Programme to deal with its domestic debts.
It has also come up with some measures, including the country joining the Paris Club to deal with its international debts – to have the foreign debts delayed or forgiven.
With the DDEP, the government is seeking to restructure approximately GH¢137.3 billion of the domestic debts it accrued through bonds it issued, including the E.S.L.A. Plc and Daakye Trust Plc, and per the requirement of the IMF, 80 percent of the country’s total debts must be subject to this debt exchange programme.
Members of the New Patriotic Party (NPP), who view the replacement of ministers in Nana Addo’s administration as a reshuffle, have been admonished by a National Democratic Congress (NDC) Chairman, Ernest Afayam that they do not comprehend and understand the notion.
Reacting to some changes in the Nana Addo administration, including the nomination of some party members to replace resigned ministers and the movement of some to ministries, Nhyiaeso NDC chairman notes that this is not a ministerial reshuffle.
He told Ultimate FM morning show host Julius Caesar Anadem that Ghanaians were expecting the removal, not just replacement, of a key non-performing minister, the Finance Minister.
“This can’t be a reshuffle; what the president has done has no economic benefit, no technical benefit; how can this be a ministerial reshuffle?” he quizzed.
“You have a car that has a bad engine, and, in this case, I am referring to the finance minister; why is he still there? The reshuffle Ghanaians wanted was the removal of Ken, the finance minister, so the car of government could move well. There is no confidence in what the president has done. No wonder we are where we are with our economy, which has now crushed,” he lamented.
President Nana Addo Dankwa Akufo-Addo has nominated three persons, two of whom are Members of Parliament, to replace ministers who have resigned from their positions.
These are the ministers of Trade and Industry, Agriculture, Chieftaincy and Religious Affairs.
Mr. Kobina Tahir Hammond, the Member of Parliament (MP) for Adansi Asokwa, has been nominated as Minister of Trade and Industry to replace Mr. John Alan Kwadwo Kyerematen.
Member of Parliament for Abetifi, Brian Acheampong, has been appointed Minister-designate for Food and Agriculture.
Member of Parliament for Karaga, Mohammed Amin Adam, who was stationed at the Energy Ministry as deputy minister, has been given a new post. He has been appointed Minister of State at the Finance Ministry. He is set to replace Charles Adu Boahen.
Stephen Asamoah Boateng has been appointed Minister-designate for Chieftaincy and Religious Affairs.
Herbert Krapah, who was Deputy Minister at the Trade Ministry has been moved to the Energy Ministry as Deputy Minister-designate. He replaces Mohammed Amin Adam.
Member of Parliament for Asante Akim North, Andy Appiah-Kubi, wants President Akufo-Addo to heed to their request for the Finance Minister, Ken Ofori-Atta, to be dismissed from office.
He says it is time for the President to fulfill his promise.
Appiah-Kubi who was the leader of a group of ruling party MPs under the infamous “Ken Must Go” banner, that threatened to withdraw support for government business in parliament if Ofori-Atta remained at post.
A meeting brokered by the New Patriotic Party (NPP) between the MPs and the presidency laid out three conditions after which the sacking of Ofori-Atta will be considered.
Appiah-Kubi told Accra-based TV3 on February 8 that all three conditions have been fulfilled and that the ball was now in the court of the president to stick to his side of the bargain.
“The indications were not exactly the total conclusion of the IMF (programme). The road maps were the passing of the budget, the approval of the appropriation and the conclusion of the first phase of the IMF negotiations which we have reached already because we have reached conclusion at Staff-Level …
“So, for all that happened at negotiations, we have delivered as one party as Members of Parliament and it is up to the president to also deliver as a contracting party.
“As far as I am concerned, all three milestones have been achieved … we have reached our end of the milestone, we expect the president to also do same,” he added.
Ofori-Atta was untouched in a recent ministerial shakeup that saw Akufo-Addo nominate seven persons for ministerial and deputy positions in his government.
President Akufo-Addo, on February 7,2023; nominated Kobina Tahiru Hammond (MP for Adansi Asokwa) as the minister-designate for Trade and Industry and Bryan Acheampong (MP for Abetifi) as the minister-designate for Food and Agriculture.
Other nominations the president made are Stephen Asamoah Boateng, for the Ministry of Chieftaincy; Mohammed Amin Adam as Minister of State at the Ministry of Finance and Osei Bonsu Amoah as Minister of State for Local Government.
Stephen Amoah, the Member of Parliament for Nhyiaeso, was also appointed a Deputy Minister-designate for Trade and Industry.
Herbert Krapah, previously the deputy trade minister was also moved to the energy ministry with the same rank.
Finance Minister Ken Ofori-Atta has been called before parliament to answer questions surrounding the impact of the government’s Domestic Debt Exchange Programme (DDEP) on pensioners and to discuss possible solutions to ease their financial burden.
Speaker of the House, Alban Bagbin, on Tuesday, February 7, urged the Minister of Finance, Ken Ofori-Atta, to meet with lawmakers to address the policy statement that has yielded mixed results since its introduction and to take immediate action in light of the recent demonstrations by senior citizens at the Ministry of Finance.
“Honourable Members, my understanding is that both sides agree that the Minister be scheduled to come and brief the House on the policy statement and some details about the debt arrangement …Parliament has spoken that is the end of the case,” the Speaker said.
“Parliament is ever prepared to assist the government to get out of this quagmire. So, what I can say now is that parliament has spoken and that is the end of it. The Minister must be scheduled by the business committee as early as possible because this is an urgent matter because the pensioners are picketing at the Ministry.
“We need to do this as quickly as possible. Business Committee should schedule the Minister to appear before the house for a brief on the state of affairs,” he added.
He proposed 14th February, 2023 for the appearance of the Minister.
Background
The Pensioner Bondholders Forum has asked the government to exempt them entirely from the debt exchange programme.
The bondholders’ demand comes after the new terms the government has introduced after various consultations with stakeholders.
Wielding placards whiles picketing the Finance Ministry on February 6, 2023, the bondholders insisted that until a meeting is granted them and a resolution is given to their plea, they would picket the premises every day.
According to the group, attempts to have their investment exempted from the programme have proved futile reason for their decision to picket at the Finance Ministry until their demands are met.
The deadline for the government’s Domestic Debt Exchange Programme has been extended to Tuesday, February 10, 2023.
A member of the NDC’s communication team, Peter Akwesi Mensah, has criticised the Akufo-Addo led administration over the economic hardships.
He says the names of the President, Vice and Finance Minister, Ken Ofori-Atta, should be captured in the Guinness book of records over the current difficulties the ordinary Ghanaian is facing.
According to him, the Akufo Addo-led administration is reckless and has caused the people of Ghana enormous pain.
Speaking in an interview with TV XYZ on Tuesday, February 7, 2023, he argued that for the first time in the history of Africa, weird happenings are being experienced in the wake of the government factoring individual bondholders in its domestic debt exchange programme.
He claimed that Ghana becomes the first country in the history of Africa to include individual bondholders in a domestic debt exchange programme.
“It is a shame on the party, they have demonstrated that the Fiscal Responsibility Act, is not actually a Fiscal Responsibility Act but rather it is a recklessness responsibility act. I am telling you. They’ve demonstrated a high level of recklessness and that’s Akufo Addo… do you know that the whole of Africa, this is the first time a government is seeking an IMF bailout and is including individual bondholders in a domestic debt exchange programme? “This is the first time in the history of African politics. So, I’m saying, Akufo Addo, Bawumia and Ken Ofori Atta need to be named in the Guinness Book of Records. They’ve set an unbreakable economic record in Africa’s history,” he said.
Meanwhile, President Nana Addo Dankwa Akufo-Addo is optimistic that Ghana will conclude talks with the International Monetary Fund (IMF) on a possible financial bailout programme.
According to President Akufo-Addo, though government’s debt exchange programme was fraught with several challenges after its announcement, it has largely been accepted by the citizenry.
He made this known when the German Federal Minister of Finance, Christian Lindner, paid him a visit at the Jubilee House.
“We have already taken one important step forward in concluding a staff-level agreement with the IMF. One of the steps was the domestic debt exchange programme which encountered a lot of difficulties, but it has now been virtually concluded…We are now looking towards going the full hog and concluding the agreement. We’re hoping that will be done by the middle of March,” President Akufo-Addo said.
He also called on Germany to encourage China, an ad hoc member of the Paris Club to support Ghana’s debt restructuring efforts.
“I am not anticipating the minister-designate for agriculture to go and also transform the agricultural ministry into a farm gate; my expectations are that he will address the wrongs at the agricultural ministry.
“I am expecting him to come up with policies, I am expecting him to ensure that the smuggling of cocoa beans will be stopped and that using his security knowledge, he will be able to stop the flow of stolen fertilisers that we use taxpayers money to import.
“I am expecting him to ensure that those who are benefiting largely from the smuggling of fertilisers, he will stop it, get them arrested and prosecuted. And also ensure that he comes up with good policies that will help the ordinary farmer,” Dr Bonaa told GhanaWeb in an interview.
The outgoing minister during his tenure spearheaded some of the government’s flagship policies including the Planting for Food and Jobs policy.
On the back of the recent rise in food prices, the ministry under Dr Akoto’s leadership introduced an open market at the ministry dubbed the Planting for Food and Jobs Market.
Critics of the outgone minister say he failed in his duty although Mr Akoto vehemently argued otherwise.
Describing the current state of the agric ministry as petty, Dr Bonaa further challenged the incoming minister to redeem the image of the agric sector in Ghana by turning things around.
“At the moment it looks so petty, the agric ministry has suffered. You know how much food crops cost today in this country. I do believe that he should also take what we have done in the past. Some of the best persons who helped this country in terms of agric; animal husbandry and the rest actually had security background. Look at the famous operation feed yourself, was it not led by Acheampong?
“When you take Major Courage Quoshigah when he was the agric minister we all saw what happened to the agric ministry in this country. So I am expecting Bryan Acheampong to use the skills and expertise he has gained over the years at the back of security and as other security persons have done, to raise the bar a lot higher,” he stated.
He also urged the incoming minister to solve the ever-present conflict between farmers and nomadic herdsmen using his background in security.
Currently a member of parliament, Bryan Acheampong is a former Minister of State at the Ministry of the Interior and the former Minister of State at the Ministry of National Security.
With a history as a retired soldier of the US Air Force, Bryan Acheampong’s experience spans Security, Intelligence, Politics, and Business Leadership.
His expertise includes Anti-Terrorism, Force Protection, Laws of Armed Conflict, Conventional Defence Training, Weapons, Small Arms, and Fuels. His experience spans Security, Intelligence, Politics, and Business Leadership.
The ministry lists the oil-related initiatives that the Nana-Addo administration has taken on in the announcement.
Under the Akufo-Addo administration, “Ghana has seen an exceptional oil well drilling success rate from all exploration wells drilled from 2017 to present,” the Ministry claims.
It added that “out of seven exploration wells drilled during the period, six of them were successful resulting in 7 discoveries.”
According to him, greed and ineptitude against national interest have engulfed the current government which has resulted in the lack of development in the oil and gas sector.
In a tweet posted on February 6, 2023, John Mahama said described the development as ‘wasted years’ despite his [NDC] administration handing over two new oil fields [TEN and Sankofa] to the Akufo-Addo government in 2017.
“Wasted years! We bequeathed to the Akufo-Addo government two new oil fields, TEN and Sankofa. Greed and ineptitude as against national interest mean a sad reality of no additional production activity in our upstream oil sector in the last 7 years,” John Mahama wrote.
“On the back of the available evidence, the Ministry wishes to state unequivocally, that the former President’s assertion cannot be supported by the available facts and therefore must be treated with the utmost contempt it deserves,” the Energy Ministry added.
Although the provisions of the program have changed, in his opinion, their demand for complete exemption still stands.
According to Dr. Antwi, pensioners would face difficulties and issues in the future if the government did not exempt them.
“From where I’m coming from as a securities market and a capital market person, we understand the exemption to be totally different from the condition that you are free to sign on,” he said.
“You owe some people you want to pay and you think you cannot pay, once you exempt me, you have already told me that as for these, I can handle so they are exempted. These, I cannot handle so let’s restructure,” he explained.
“In the future, the government can say that you did not take the restructuring. I already told you that I may face some challenges meeting the obligation so let us restructure and you refused. So if you go there, you become a part of it. If you decide not to take part, you already know,” he said.
Background
The Pensioners Bondholders’ demand comes after the new terms which government has introduced after various consultations with stakeholders.
Wielding placards whiles picketing the Finance Ministry on February 6, 2023, the bondholders insisted that until a meeting is granted them and a resolution is given to their plea, they would picket the premises every day.
Some of the inscriptions read: “Don’t you feel our pain? Spare us this ordeal,” “Pensioners have paid their dues to the nation”, “Don’t push pensioners to their early graves”, “Don’t turn pensioners into destitute”, and “Pensioners deserve compassion, not compulsion”.
The pensioners have thus picketed the Finance Ministry today, February 7, 2023, for the second day to register their demand.
His statement follows Finance Minister Ken Ofori-warning Atta’s that Ghana’s economy will implode without the participation of designated parties in the Domestic Debt Exchange Program.
He asserts that the program’s Tuesday deadline won’t be extended and expresses his hope for participation from all parties.
“The debt exchange should be done in a manner that will reflect the individual, so if the individual says look, the bond that I had is just 5,000 and the interest on it, that is what I use to take care of my medical bill even with the individual bondholders there are degrees there are people with huge sums of money and people without huge sums of money.
“The finance minister could do the targeting but it is as if the principle is that everybody should contribute. That is what they rejected and we cannot force them because we felt it is voluntary and we cannot pay for it,” Mr. Gatsi explained.
He continued: “Now, we are saying that if they don’t get the IMF deal in March the economy will collapse, collapse how? Because there is nothing in the government arrangement that shows that we are in a dire economic situation and that if we don’t sign the IMF deal by March we will collapse. The expenditure arrangements do not reflect that.”
He supported his allegation regarding the cedi by citing the currency’s ongoing decline since January 1 versus the US dollar.
Hanke hinted that the local currency was essentially “junk” in a tweet that was accompanied by a graph illustrating the cedi’s course of decline since 2020.
“The cedi is in serious trouble in Ghana. According to my calculations, the cedi has declined against the USD by 49.32% since the start of 2022. Ghana has allowed my collection of renegade currencies to keep expanding “He wrote in a tweet.
Cedi exchange rate against US dollar: February 6, 2023
As compared to Friday’s trading of a buying price of 10.7941 and a selling price of 10.8049. At a forex bureau in Accra, the dollar is being bought at a rate of 12.00 and sold at a rate of 12.70.
In a speech on February 6, 2023, the finance minister asked both institutional and private bondholders to join the scheme.
However, he added, “We acknowledge that there were genuine and important concerns that needed further and broader consultations. As a consequence of the necessary actions taken to resolve them, the terms have been adjusted, and the closing date has been changed, with a new deadline of tomorrow.
“Tomorrow, Tuesday, 7th February 2023, is the final deadline for institutions and individuals to sign up to Ghana’s Domestic Debt Exchange Programme,” he added.
This will mean that the exemptions being sought individual bondholders and pensioner bondholders may not be granted.
He said: “All individual bondholders who are below the age of 59 years (Category A) are being offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 10% coupon rate;
“All retirees (including those retiring in 2023) (Category B) are being offered instruments with a maximum maturity of 5 years, instead of 15 years, and a 15% coupon rate,” he added.
The Pensioner Bondholders Forum, an organization for the protection of retirees with investments in government bonds, started picketing at the Finance Ministry’s offices on Monday and is demanding that they be spared from the Domestic Debt Exchange Program (DDEP).
According to the group, attempts to have their investment excused from the program have failed, which is why they will be picketing outside the Finance Ministry until their requests are met.
“Combined with the considerable fiscal adjustment we would have resolved this by now and probably have an IMF program by now. Without an external anchor you will see stability. We have also seen some stability at the global level.
“So in terms of imported inflation and all of that you will see that in moderation. There are those who think that inflation has not seen its worst. So perhaps in terms of elevated prices to the end of the first quarters yes we should not be surprised. But it depends on how fast we are able to do some of these things and particularly get an IMF program,” Mr. Bokpin explained.
The Finance Expert indicated that there were some good economic signals on July 1, 2022 when Ghana made the call to Washington for the IMF support programme.
“On the secondary and Eurobond market the spread on how much our bonds were trading in excess of dollars actually narrowed. That is the kind of credibility the IMF program brings immediately. You could also see when the Staff Level Agreement was announced you could see what happened to the cedi right after that because the uncertainty has been resolved.”
“So a lot depends on how quickly we are able to build consensus with everybody. But the approach the Minister of Finance has adopted in itself creates a whole lot of disaffection in seeking for the IMF programme. Therefore it may affect the implementation and acceptability of the IMF program at the end of the day. It is also about strategy and I think it has been done poorly.”
The nation joins the DCO, an international organization that was established to help nations create their digital economies as a crucial component of sustainable growth and development, becoming the twelfth nation to do so.
Well-established as a leader in utilising the power of communications and digital technologies to support economic growth, Ghana was the first country in sub-Saharan Africa to launch a cellular mobile network, in 1992, and one of the first countries in Africa to be connected to the Internet and also introduce ADSL broadband services.
The country is also a leader in digital payments and mobile money, with the second-highest data penetration rate and fastest-growing mobile money market in sub–Saharan Africa which has greatly enhanced financial inclusion; and as the newest member of the DCO, Ghana is expected to bring that experience and expertise to share with the other member-states.
The two West African countries’ accession therefore means the DCO now represents 13 nations and serves around 600 million people with a collective GDP of more than US$2trillion.
Commenting on the development at a press conference, Communications and Digitalisation Minister Ursula Owusu Ekuful said: “Ghana shares the DCO’s vision of using technology to create opportunities for economic diversity and growth, and to empower our people – especially the youth, through digital and financial inclusion. We look forward to working with our fellow DCO member-states and DCO Observers to share our experience and collaborate in the fields of e-government, infrastructure and entrepreneurship, and to foster investment in Ghana with member-states”.
On her part, Deemah AlYahya, Secretary-General, said the DCO was pleased to welcome Ghana to the organisation, saying: “Ghana is one of the leaders among African nations in adopting new technology and in the wise use of policies, such as its Digital Finance Policy that supports new areas of development and brings positive benefits to the community”.
She said the DCO was created to encourage knowledge-sharing and exchange for the good of all nations, and that she believes Ghana has many lessons to share with the DCO and our ecosystem of nations.
The DCO focuses on digital economy initiatives supporting youths, startup entrepreneurs and women.
With 70 percent of future economic growth set to be digital, DCO member-states provide a valuable market opportunity to investors and entrepreneurs alike; and it is focused on empowering youth, women and entrepreneurs; leveraging the digital economy’s accelerative power; and leapfrogging with innovation to drive economic growth and increase social prosperity.
Through cooperation, dialogue and the creation of mutually advantageous cross-border legislation, the organisation further seek to establish within its member-nations the optimal infrastructure and policies needed for the rapid creation of inclusive and equitable digital economies within which all people, businesses and societies can innovate and thrive.
He emphasized the urgency of moving quickly since further setbacks might severely strain and stress the economy, notwithstanding recent changes to the DDEP’s framework and agreements with important parties. The debt operation is still essential for the government to complete a deal with the International Monetary Fund (IMF).
In an economic update yesterday, the finance minister said significant amendments have enabled government reach an agreement with key domestic creditor categories including banks, insurance companies, capital market players and foreign holders of domestic debt in relation to their participation in the DDEP.
“Frankly, non-participation or a lower-than-expected turnout for the DDEP will prolong efforts to resolve the current economic crisis. In addition, the prospects of international financial support and other financial assurances would be jeopardized. This development could further put strain and stress on the government’s capacity to honour key commitments. This is not what we want for our economy,” the Minister said.
“Undoubtedly, the participation of the banks, insurance companies and the securities industry, under the enhanced DDEP is a significant milestone which represents a response to a call to national duty. It is a critical step to restore macro-economic stability; accelerate Ghana’s economic growth under an IMF Programme; and leverage other international financial support,” Mr. Ofori-Atta emphasised.
In December 2022, the government invited all holders of Ghana’s bonds to voluntarily exchange their holdings for new bonds whose terms were compatible with its desired downward debt trajectory, within the context that, for Ghana to reach the required debt sustainability threshold of debt-to-GDP of 55 percent, it was important to review the interest rates and maturities of the existing bonds.
However, there were emerging concerns by bondholders about the nature of the debt operation, forcing the government to recalibrate the framework of the DDEP.
On the back of these recent developments, the comprehensive agreement with the key stakeholders and the enhancement of the DDEP, the government expects the full participation of institutional stakeholders and the mobilisation of all qualified investors, to ensure the success of the debt exchange operation.
The Minster further encouraged eligible individual bondholders to voluntarily tender their holdings.
The updated memorandum for the debt exchange programme has reclassified eligible bondholders into three categories with different terms for each category. Category A bondholders include all investment schemes, such as mutual funds or unit trusts, and all individual bondholders below the age of 59. Investors in this category are eligible to hold two bonds which will mature in 2027 and 2028, with principals in a ratio of 50:50 ratio and 10 percent interest per year.
Category B bondholders include all individual bondholders aged 59 or older. Category B holders have similar terms as Category A; however, they will receive 15 percent interest per year.
The last group is the General Category bondholders. These are bondholders who are neither Category A or Category B bondholders. These bondholders will still tender their old bonds for 12 new bonds as per the previous terms, but with a slight change in the interest payment structure.
The objective of this is to ensure that individuals, especially retirees, who put their hard-earned savings in the domestic market, are not left in hardship as a result of the DDEP and yet contribute to the resolution of our current crisis.
“What we want is an economy that is back on track, stable, vibrant, productive, dynamic; meeting the needs of individuals, households, and enterprises; delivering shared and inclusive growth; and improving incomes and livelihoods,” the Minister said.
Finance Minister, Ken Ofori-Atta, has revealed that the country’s economy will crash in March 2023 should current economic conditions remain the same.
Mr Ofori-Atta disclosed the information on Monday when he engaged Pensioner bondholders who picketed at the Finance Ministry today.
According to the Finance Minister, Ghana is “in a crisis, (and) we cannot put our heads under the sun and pretend that we are not.”
“We need to be mindful that we really need to be successful in going to the fund by this March to avoid what we all experienced last year which we all don’t want to experience again,” he added.
Ghana since the beginning of 2022 began witnessing its economic growth decline. The regression has been attributed to the COVID-19 pandemic and the Russian-Ukraine war, as well as some internal activities such as heavy importation.
In July 2022, government formally engaged the International Monetary Fund (IMF) after months of declining suggestions to seek assistance from the Fund.
For close to eight months, the government and the IMF have been discussing initiatives that must be put in place to ensure Ghana receives a credit facility worth 3 billion dollars.
Among the conditions is a debt restructuring programme which would ensure Ghana does not default is debt. Government in December introduced the Domestic Debt Exchange Programme (DDEP), however is yet to see its implementation.
The DDEP is currently being analsyed critically following concerns from pension holders and individual bondholders.
Government is concerned that without its debt exchange programme in place, Ghana would not be able to receive assistance from the IMF.
Finance Minister Ken Ofori-Atta has stated Ghana’s economy is highly likely to collapse should government fail to secure a credit facility with the International Monetary Fund (IMF).
Engaging pensioner bondholders on Monday, February 6, Mr Ofori-Atta entreated them to accept a 3.5% cut and accept the new terms of 15% coupon rate and 5% maturity to avert such an unfortunate situation.
“We really feel that government has listened, there is humanity to us, we are protecting the destitute, widows and the orphans and the older people who have worked for this nation. We are in a crisis, we cannot put our heads under the sun and pretend that we are not.”
“We need to be mindful that we really need to be successful in going to the fund by this March to avoid what we all experienced last year which we all don’t want to experience again,” he said.
Pensioners gathered at the Finance Ministry today to register their displeasure against the inclusion of their bonds in government’s domestic debt exchange programme.
The pensioners who are part of the Pensioner Bondholders Forum, want the government to completely exempt them from the debt exchange. They believe the inclusion of their bonds will negatively impact their livelihoods.
The closure of the invitation for holders of the government’s bond to subscribe to the programme expires tomorrow, Tuesday, February 7, 2023.
He claims that the current administration has been consumed by greed and incompetence working against the interests of the country, which has prevented the growth of the oil and gas industry.
John Mahama condemned the development as “wasted years” in a tweet from February 6, 2023, despite the fact that his [NDC] administration had given the Akufo-Addo administration two new oil fields in 2017—TEN and Sankofa.
Meanwhile, the Public Interest Accountability Committee (PIAC) in a recent assessment report on Ghana’s petroleum revenue management spanning a 10-year period showed that an amount of US$31.22 billion in value was generated from three producing oil fields between 2011 and 2022.
PIAC’s report which was released on March 1, 2022, said the generation comprises both entitlements due to the contracting parties and the Ghana Group.
The Ghana Group, according to the report earned US$6.55 billion in total petroleum receipts between 2011 and 2020.
The government has created the voluntary Domestic Debt Exchange Programme (DDEP) to address its domestic debts in order to achieve this. Additionally, it has proposed other steps, such as having the nation join the Paris Club to address its international debts (to have the foreign debts delayed or forgiven).
With the DDEP, the government is seeking to restructure approximately GH¢137.3 billion of the domestic debts it accrued through bonds it issued, including the E.S.L.A. Plc and Daakye Trust Plc, and per the requirement of the IMF, 80 percent of the country’s total debts must be subject to this debt exchange programme.
However, the government has been struggling to get the needed stakeholders to sign up for the DDEP to meet the required standard and has extended the deadline for the programme several times.
This article looks at the different times the government has had to extend the deadline for participation in the DDEP and the new offers it made to bondholders.
This announcement was in line with the government’s debt sustainability analysis, as contained in the 2023 budget he presented to Parliament on November 24, and it gave entities up to December 30, 2022, to indicate their participation in the programme.
The minister laid out, among other things, the exchange of existing domestic bonds with four new ones, as well as their maturity dates and terms of coupon payments.
Under this initial offer, for bondholders with bonds maturing in 2023, the government promised four new bonds that were expected to mature in 2027, 2029, 2032, and 2037, and 0% interest in 2023, 5% interest in 2024, and 10% interest in 2025, which will continue till the maturity of your bond.
Initially, the government stated that the programme would affect securities dealers and funds, private banks and investment companies, insurance schemes, pension funds, and non-resident investors, but not individual bondholders.
First extension from December 30, 2022, to January 16, 2023
After fierce resistance from trade unions about the inclusion of pension funds in the DDEP and the lack of enough voluntary participation, the government announced the extension of the voluntary participation in the programme to January 16 with the following modifications:
• Offering accrued and unpaid interest on Eligible Bonds and a cash tender fee payment to holders of Eligible Bonds maturing in 2023;
• Increasing the New Bonds offered by adding eight new instruments to the composition of the New Bonds, for a total of 12 New Bonds, one maturing each year starting January 2027 and ending January 2038;
• Modifying the Exchange Consideration Ratios for each New Bond. The exchange consideration ratio applicable to Eligible Bonds maturing in 2023 will be different from other Eligible Bonds;
• Setting a non-binding target minimum level of overall participation of 80% of the aggregate principal amount outstanding of eligible bonds; and
• Expanding the types of investors that can participate in the exchange to now include individual investors
Second deadline extension from January 16, 2023 to January 31, 2023:
The government on Monday, January 16, extended the deadline for DDEP to Tuesday, January 31, 2023, after resistance by some of the stakeholders involved in the programme, particularly individual investors whom the government promised not to include in the programme.
A press release on the development, issued by the Public Relations Unit of the Finance Ministry, announced some modifications by the government on the invitation to the exchange, including;
Offering accrued and unpaid interest on Eligible Bonds and a cash tender fee payment to holders of Eligible Bonds maturing in 2023;
Increasing the New Bonds offered by adding eight new instruments to the composition of the New Bonds, for a total of 12 New Bonds, one maturing each year starting January 2027 and ending January 2038;
Modifying the exchange consideration ratios for each New Bond. The exchange consideration ratio applicable to Eligible Bonds maturing in 2023 will be different than for other Eligible Bonds;
Setting a non-binding target minimum level of overall participation of 80% of the aggregate principal amount outstanding of Eligible Bonds; and
Expanding the types of investors that can participate in the exchange to now include individual investors.
Extension of deadline from January 31, 2023 to February 14, 2023
The government had to once again extend the deadline for voluntary participation in the DDEP to February 14, 2023, from January 31, 2023, citing its latest offer to individual bondholders.
Even though this time around a lot of groups, including banks, have agreed to participate in the programme, the government still wants to include individual bondholders.
The latest offer includes the exchange of instruments with a maximum maturity of 5 years instead of 15 years and a 10% coupon rate to individual bondholders below the age of 59 to encourage them to participate in the DDEP.
Additionally, all retirees (including those retiring in 2023) will be offered instruments with a maximum maturity of 5 years instead of 15 years and a 15% coupon rate.
The current deal has, however, been rejected by individual bondholders. The individual bondholders, who are pensioners, picketed at the Ministry of Finance on Monday, February 6, 2023, to demand that the government exclude them from the DDEP.
The Individual Bondholders Association of Ghana (IBHAG) is upset that the Finance Minister [Ken Ofori-Atta] has missed payments for coupons and maturities due on February 6, 2023.
This occurs after the Finance Minister and IBHAG verbally agreed to pay the maturities and coupons as part of a new Memorandum of the Debt Exchange Program.
IBHAG claims in a statement that it is demanding that Ken Ofori-Atta, the finance minister, explain what appears to be a contradiction.
“We call on the Finance Minister to clarify this apparent contradiction. If it turns out to be exactly what we have read in the memorandum, that will be a betrayal similar to the vain promises, veiled threats, and inconsistencies of the Finance Minister in the DDE exercise,” the statement said.
“We demand an explanation from the Minister on the memorandum, whilst we serve notice that our patience is waning. We are tired of the Minister’s shenanigans, and we will resort to whatever it takes to protect our health, the education of our children, and our livelihoods, in line with our national anthem, which enjoins us to resist oppressor’s rule,” portions of the statement added.
They further accused the Finance Minister [Ken Ofori-Atta] of being arrogant while reneging on promises made around the Domestic Debt Programme as part of building consensus.
“Meanwhile, he [Ken Ofori-Atta] has remained arrogant, ignoring all advice from his own government, political party, parliament, financial experts, religious bodies, traditional leaders, and Civil Society Organisations (CSOs) among many others,” IBHAG stressed.
IBHAG in its statement however called on its members to remain resolute and resist the attempts to get them to sign onto the Debt Exchange Programme.
“Our technical and legal teams are assessing the memorandum and will advise on Monday on its implications. Members will be duly informed as to when to activate the next line of action.”
Meanwhile, the group said it would not allow the Finance Minister to use their hard-earned salaries, severance packages, life-long savings, and monies for their health care and children’s education to pay for his recklessness and incompetence.
They also accused him of using his company to serve as a transactional advisor to government’s reckless borrowings while benefiting from the said move.
A cutting-edge facility will be built as a result of this strategic alliance between the two businesses, which will strengthen the local economy and give Ogun people job possibilities.
The new facility will greatly improve the nation’s production capacity and aid in meeting Nigeria’s expanding demand for building materials by having the ability to produce over 10 million metric tonnes of cement yearly.
The project is expected to drive economic growth and development, and support the government’s efforts to diversify the economy.
Born in Nigeria in 1957, Dangote is the founder and chairman of Dangote Group, a conglomerate of companies with interests in various sectors such as cement, sugar, flour, salt, and beverages.
Dangote began his business ventures at a young age, starting with trading in commodities such as rice, sugar, and cement. Over the years, he has expanded his business to become one of the largest industrial groups in Africa.
Dangote’s success can be attributed to his entrepreneurial spirit, risk-taking abilities, and deep understanding of the Nigerian market. He has a strong track record of identifying business opportunities and turning them into successful ventures.
Dangote Group operates in several African countries, including Nigeria, Ethiopia, Senegal, Cameroon, Ghana, and others, and has plans to expand to additional markets in the future.
Dangote is also the driving force behind the Dangote Oil Refinery, a massive 650,000-barrel-per-day oil refinery soon to launch in Lagos, Nigeria.
The world-class facility will be one of the largest oil vertically integrated refineries in the world and is expected to significantly reduce Nigeria’s dependence on imported fuel.
The refinery is a part of the Dangote Oil Refining Company and will produce gasoline, diesel, jet fuel, and petrochemicals.
Nigerian President Muhammadu Buhari is set to commission the refinery, marking a significant milestone in Nigeria’s efforts to develop its domestic refining capacity and reduce its reliance on imported fuel.
In addition to his business interests, Dangote is also known for his philanthropic efforts. He has established the Dangote Foundation, which focuses on improving the quality of life for people in Africa by supporting education, health, and economic empowerment initiatives.
He said during the 4th Aviation Ghana stakeholder forum, held on Tuesday in Accra, “Ghana must avoid the temptation of increasing Airport charges against IATA’s norms and regulations.”
He claimed that violating IATA regulations by raising airport fees would harm the nation’s booming aviation sector.
As part of the programme, there was a panel discussion on the topic “Post COVID-19 Recovery Process and the Journey Ahead”, to consider measures to promote the aviation industry.
In his remarks, Mr Al-Awadhi said resilience had been the hallmark of the aviation industry globally since the outbreak of the COVID-19 pandemic.
He said the global aviation industry in 2020 lost $6.9 billion out of the predicted figure of $9.7 billion.
Mr Al-Awadhi disclosed that Africa’s aviation sector in the year 2020 lost $638 million and the loss was expected to be reduced to $213 million in 2023.
He called on governments in Africa to put measures in place to spur the growth and recovery of the sector.
“An enabling regulatory environment will help in job creation and recovery of Africa’s aviation sector,” Mr Al-Awadhi stated.
The Minister of Transport, Kwaku Ofori Asiamah, who was the special guest, said the global economy depended heavily on the aviation industry.
“Aviation connects people, cultures and businesses. Indeed, the importance of the industry cannot be overstated,” he said.
He assured that the government would continue to create an environment for the aviation sector to thrive.
He said the Airport Passenger Service Charge was GH¢ 1 in 2009, and increased to GH¢ 5 in 2010, and since 2010 the levy has not been increased.
Alhaji Tampuli said Guinea Bissau and Gambia charged between $6 and $13 as Airport Passenger Service Charge, and the average in West Africa was $4.63.
He said Ghana’s Airport Passenger Service Charge in dollar terms was $0.41.
Alhaji Tampuli said the Airport Passenger Service Charge was woefully inadequate.
The Ghana Mineworkers Union and certain civil society organizations have expressed worry about the viability of the country’s policy of exchanging its gold hoard for oil on the world market.
They contend that although while the concept is highly novel, it only seems to offer a temporary fix to the nation’s current economic problems.
More long-lasting measures need to be implemented, according to Abdul Moomin, general secretary of the Ghana Mineworkers Union.
“At the end of the day, the expectation is that, if it’s a credible avenue that we can use to leverage the rising cost of petroleum products across the globe and Ghana is not an exception, I think it’s an innovative idea that could be looked at. But it all boils down to how much gold we have in store and how much we are ready to trade,” he said.
“I see the Gold for Oil very sustainable. If you look at the data, the quantity of gold that is exported every year, particularly sector, if the government had a firmer control over it, things would have been better in this country. This policy has great benefits to the citizenry as fuel prices will stabilize which will also prevent the prices of products from skyrocketing. Again, for the past two weeks after the country took its first delivery of oil, the Cedi has stabilize against the dollar and that is good for the country.”
“Few days ago, GOIL reduced diesel price by 4% and they attributed this to the Gold for Oil Policy. If this project is continued it will have a rippling positive on citizenry and the plight of Ghanaians will be relieved from the economic hardship which they are currently facing.”
Government of Ghana a fortnight ago took delivery of 41,000 metric tonnes of the petroleum products delivered by SCF YENISEI to be sold by BOST to bulk distributing companies (BDCs) around Ghana.
Valued at $40 million, it was brokered by the Economic Management Team led by Vice President Dr Mahamudu Bawumia.
In November 2022, the government announced plans to buy oil products with gold rather than US dollars.
Vice President Dr Mahamudu Bawumia, said that the move was meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which was weakening the local cedi and increasing living costs.
“It will fundamentally change our balance of payments and significantly reduce the persistent depreciation of our currency,” Dr Bawumia said.
President Akufo-Addo claims that even though the government’s debt swap program had a number of difficulties after being announced, the general public has generally accepted it.
When German Federal Minister of Finance Christian Lindner paid him a visit at the Jubilee House on Friday, he let him know about it.
“We have already taken one important step forward in concluding a staff-level agreement with the IMF. One of the steps was the domestic debt exchange programme which encountered a lot of difficulties, but it has now been virtually concluded…We are now looking towards going the full hog and concluding the agreement. We’re hoping that will be done by the middle of March,” President Akufo-Addo said.
He also called on Germany to encourage China, an ad hoc member of the Paris Club to support Ghana’s debt restructuring efforts.
This, he said, will enable Ghana to restore economic growth.
It would be recalled that the International Monetary Fund (IMF) on Tuesday, December 13, 2022, reached a staff-level agreement with Ghana on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion.
According to the IMF, the authorities’ strong reform programme is aimed at restoring the macroeconomic stability of Ghana’s economy.
An IMF team led by its Mission Chief for Ghana, Stéphane Roudet, said Ghanaian authorities have launched a comprehensive debt operation by way of restoring the country’s public debt sustainability.
Ghana has over the past five months run to the International Monetary Fund (IMF) for a financial bailout after the local economy took a nosedive and has been in an unsteady position since.
The local currency – Cedi – on the other hand, depreciated against major trading currencies which led to the suffering of businesses or a large extent, the collapse of some as they struggled to remain in business.
Government implemented some measures to ensure that the Cedi was strengthened to compete against major trading currencies, especially the US dollar.
Martin Adu-Owusu, the corporation’s managing director, told the Public Accounts Committee of Parliament in Accra that initiating legal action against its creditors had become the only option if it were to recover its locked-up funds from clients and suppliers.
In its 2020 report on Public Boards and Corporations, the Auditor-General observed that creditors of the state-owned media organization have lost interest in paying off their obligation to the NTC.
“Customer balances recorded by head office showed GH¢196,603.73 and GH¢185,935.76 in respect of stopped subscription and vendors as against GH¢151,932.93 and GH¢124,807.19,” the report said.
“We have made several efforts including the Minister of Information writing to our debtors to do the needful.”
“What we have done, since last year, was to serve notices in our newspapers so that those who owe us would come and pay.”
“The deadline was February 1. I have started receiving letters from the debtors coming to arrange for payments. From this stage, we will move a step further by taking legal action against the debtors because we have done all that we could but the situation is not improving,” Mr Adu-Owusu told the Committee.”
Backing the NTC Managing Director, the Member of Parliament for Ningo-Prampram, Sam George, rallied individuals and organisations indebted to redeem their indebtedness to the company to enable it function effectively.
Mr George said the locked-up funds with the debtors go into the running of the publisher and that their failure could run the company aground.
“To all those owing the NTC, we are using this opportunity to urge you to pay your debts to enable the corporation function effectively,” Mr George advocated.
In the operational and profitability of the corporation, meanwhile, Mr Adu-Owusu said all efforts to access government support over the last three decades have yielded no result from successive governments.
“We have asked for support for over 30 years but we have never received the support. We have now taken our destinies into our own hands trying to do the best that we can to revive NTC,” he said.
Asked if government had any plans to support the company to turn around its fortunes, Information Minister, Kojo Oppong Nkrumah, said plans were far advanced to extend support to the NTC.
“Over a year ago, we asked the company to submit a plan to us so that we could support them. We have taken that plan upstairs and there are a number of options on how to get them the support to be a well-functioning and profitable entity for the Republic,” Mr Nkrumah said.
As stated by the government, the policy is to permit government to pay for imported oil products with gold in a direct barter using gold bought by the central bank.
The Vice President explained the move, which was made in the midst of the cedi’s depreciation against the US dollar and the rise in fuel prices, as an intervention to help stabilize fuel product prices as well as reduce pressure on Ghana’s foreign exchange because Ghana would be able to pay for imported oil through direct gold barter rather than using up its foreign exchange reserve.
The ‘Gold-for-Oil’ programme has since been implemented with the first oil consignment arriving last month.
Below is everything you need to know about the policy:
2. The prime objective of the programme is to use additional foreign exchange resources from the BoG’s DGP programme to provide foreign currency for the importation of petroleum products for the country which currently stands at about USD350 million per month.
3. The government has begun the implementation of the Gold-for-Oil Programme where gold purchases under the BoG’s DGP Programme mainly through the Precious Minerals and Marketing Company (PMMC) and where required from aggregators and mining firms is used to purchase petroleum products.
4. This is intended to free up foreign exchange resources to meet petroleum imports of the country thereby reducing pressures on the Bank of Ghana’s foreign reserves and the banking sector emanating from the Bulk Import, Distribution and Export Companies (BIDECs) request for foreign exchange.
5. The programme also aims to procure petroleum products at very competitive prices through Government-to-Government (G2G) arrangements. The programme will ensure that the cost of importing the products from international oil traders will always be comparatively lower.
6. The consequent reduction in foreign exchange pressures, the reduction in premiums charged by international oil traders as well as efficiency gains from the value chain will translate to lower ex-pump prices in the country. The G4O Programme Process Flow and Requirements:
7. Under the programme, all the dore gold produced and exported by companies with licensed small-scale concessions including community mines through the PMMC shall be purchased by the BoG. The Ministry of Lands and Natural Resources has issued directives towards the realisation of the programme.
8. The purchased dore gold is used for the payment of oil supply to Ghana. Payment for oil supply is to be done in two channels: by way of barter trade or via broker channel.
The Barter Channel:
• For suppliers willing to take gold in direct exchange for petroleum products, BoG will provide equivalent volume of gold. Both the Bank and the International Oil Trading Companies (IOTCs) are required to open Gold Metal Accounts in a mutually agreed gold refinery for the purpose of gold transfer.
• BoG accumulates refined gold in its metal account at a refinery nominated by a supplier to fund petroleum product shipments.
• BoG transfers equivalent amount of gold based on petroleum products supply invoice from its metal account to a supplier’s metal account on receipt of Quality Certificate (QC) of the product supplied and final invoice from Bulk Oil Storage and Transport Company (BOST). The Broker Channel:
• BoG executes a Gold Supply Agreement under which it sells gold to a gold broker, which provides forex cover to pay for petroleum products.
• Gold Broker buys dore gold from BoG and deposits the proceeds in BoG gold holding account.
• BoG transfers funds from gold holding account to an Escrow Account to pay for petroleum product shipment on receipt of QC and final invoice from BOST.
9. BOST, a state company, operates as an off taker for petroleum products, and therefore executes an agreement with IOTCs for the import of petroleum products to Ghana, for onward sale to licensed BIDECs.
10. BIDECs buy directly from BOST with cash and or a letter of credit (guarantee) from a reputable financial institution.
11. BOST and the National Petroleum Authority (NPA) ensure that the cedi proceeds from the sale of imported petroleum products will be collected and deposited with a collection bank in favour of BoG. The collection bank is required to transfer collected funds into BoG’s G4O proceeds account within 48-hours which is then used to fund the next cycle of gold purchases.
Pricing of Products:
12. To ensure that the price of petroleum products imported under the G4O programme reflects at the pumps to benefit the consumer, the NPA will regulate the prices of these products in the interim to correct market failure until the policy matures.
13. NPA will work with BOST to negotiate prices with the international oil traders to ensure that the landed cost of products procured under the programme are always competitive. NPA will approve the IOTC that will be selected to supply products to BOST under the programme based on the competitiveness of the offers made by them. BOST will sign supply contracts only after approval has been granted by the NPA.
14. The price at which BOST will sell the products to BIDECs will be approved by the NPA. The price at which the BIDECs will sell the products to Oil Marketing Companies (OMCs) will also be approved by the NPA.
15. The applicable exchange rate for pricing the products supplied under G4O will be based on the average rate at which the gold was purchased from the licensed gold exporters by BoG.
16. The NPA will put measures in place to ensure that OMCs that lift products supplied under the G4O programme pass the price on to consumers accordingly. In this respect, BIDECs and OMCs who lift and supply G4O products will sell at the ex-refinery and ex-pump prices that will be determined by the NPA. If there must be a comingling of products supplied under G4O and other sources, the ex-refinery and ex-pump prices will be computed using a weighted average.
17. All BIDECs and OMCs who wish to purchase products under the G4O programme will be required to sign off an undertaking confirming their willingness to comply with the terms and conditions for partaking in the purchase and sale of G4O products.
18. To ensure that the impact of the G4O programme on ex-pump price will be significant and effectively monitored, the number of BIDECs and OMCs who will be permitted to lift G4O products will be controlled. Payment Structure:
19. BOST will be required to pay for products supplied to it under G4O into an Escrow Account at BoG within 60 days of receipt of products from the international oil traders.
20. BIDECs will be required to pay for products procured from BOST within 15 days of loading. Payment for the products will either be on a cash basis or with a 15-day letter of credit (LC) from reputable commercial banks.
21. BOST will be required to provide BoG with copies of the LCs from BIDECs for verification and to give BoG the assurance that receipt of payments will be made on agreed dates.
Laycan allocation for product imports:
22. The NPA will ensure that adequate laycan slots are allocated to BOST to import products under the programme.
23. NPA will advise BOST on the projected demand on a monthly basis.
The group claims that attempts to have their investment excused from the program have failed, which is why they have decided to picket outside the Finance Ministry until their requests are granted.
“We have as of today not been granted the exemption we requested. To further press home our request, we have notified the Police that about 50 of our members intend to converge at the premises of the Ministry of Finance on every working day from 10 am-11 am, beginning from Monday 6th February 2023 till our request is granted by the Minister.”
The deadline for the government’s Domestic Debt Exchange Programme has been set for Tuesday, February 7, 2023.
Because of this urgent necessity, landlords frequently use renters as leverage to demand astronomical rent payments.
While the average earnings of a Ghanaian youth allows for some variation in rent payments, depending on the locality, they are nevertheless need to come up with enormous rent advances covering an average of two years.
She also bemoaned the amount imposed by rental agents who provide and lead potential tenants to prospective places of rent – something that is described as ‘viewing fee’ and ‘agent fee’
In addition to this, the young lady lamented the associated bills needed to pay for survival in a rented place coupled with making a living.
“It’s rather serious that I have been in a rented place for about two years where I’m paying GH¢8,000 and now I’m supposed to be paying GH¢9,600…yet the landlord is demanding a two-year rent advance, not even for a year,” she lamented.
She continued, “I was under the impression that rent payment should cover between six months to a year and now it seems like we are just working to earn money, not for ourselves but just to pay landlords. The youth of this country are suffering and rent is killing us all.”
“For instance, in Dansoman, you won’t even get a single room to rent at the cost of GH¢600 but the landlord will instead demand a two-year rent advance. This is rather too much for the youth.”
Pensioner Bondholders Forum, a group for the protection of the pensioners with investment in government bonds has served notice to picket at the premises of the Finance Ministry until its members are exempted from the Domestic Debt Exchange Programme (DDEP).
According to the group, attempts to have their investment exempted from the programme have proved futile reason for their decision picket at the Finance Ministry until their demands are met.
“On 10 January 2023, we submitted a petition to the Minister of Finance to exempt all pensioners holding Government Bonds from the Domestic Debt Exchange Programme on the same basis used for the exemption of Pension Funds from the programme, as the impact of the programme on pensioners who are bondholders will be very severe.
“We have as of today not been granted the exemption we requested. To further press home our request, we have notified the Police that about 50 of our members intend to converge at the premises of the Ministry of Finance on every working day from 10 am-11 am, beginning from Monday 6th February 2023 till our request is granted by the Minister.”
The deadline for the government’s Domestic Debt Exchange Programme has been set for Tuesday, February 7, 2023.
The impacted residents of the mining community of Gbani, located in the Talensi District of the Upper East Region, accused Mr. Tampoare, a fictitious regional chairman of the Small-scale Miners Association of Ghana, of wasting $150,000 that was supposed to be split among eight members of the Unique Mining Group.
At the news conference, the acting Chairman for the Unique Mining Group and member of FOAEJU-GH, Abdulai Amaligo, last Friday, called on the Regional Minister, Stephen Yakubu, to ensure that Mr. Tampoare gives members their fair share of the compensation.
He said that the minister handed $150,000 to Mr. Tampoare at the office of the minister, at the Regional Coordinating Council (RCC), in Bolgatanga, in July 2021.
Acting Chairman for the Unique Mining Group, said the group did not sanction any negotiation between Mr. Tampoare and the Earl International Group Ghana Gold Limited on the ‘trespass’ monies paid by the company.
He said that Mr. Tampoare after defying advice to desist from his unilateral negotiations with the company, acted together with the Upper East Regional Minister, and the duo reached a $150,000 deal with the company.
“Our financier, Boyak Kolog Zongdan told us that the said amount ($150,000) was paid to the Upper East Regional Minister, Mr. Stephen Yakubu. Surprisingly, the Regional Minister chose to pay the monies to Robert Boazor Tampoare in person without our consent,” Mr. Amaligo alleged.
He said the group has given Mr. Yakubu a two-week ultimatum to impress upon Mr. Tampoare to pay the compensation or risk facing the wrath of members.
Mr. Amaligo said Tampoare, the man at the centre of the accusation, has been arrested by the Bolgatanga Divisional Police Command, and subsequently handed over to the Regional Police Command, to assist with investigations.
Meanwhile, the Development Research and Advocacy Centre, a Bolgatanga-based civil society organisation, has petitioned the Commission of Human Rights and Administrative Justice, to investigate the Regional Minister for allegedly abusing his office and engaging in false representation, and “using his office to get the lump sum compensation paid into the bank account of the RCC, with account number: 9011130014513, for onward disbursement to the concession owners.”
However, Mr. Yakubu in his response, denied all allegations levelled against him, describing them as vexatious, baseless and unfounded.
According to him, the people styled themselves as aggrieved small-scale miners, who had not received their share of the compensation, and were only sponsored by his detractors to drag his name into disrepute.
According to Mr. Yakubu, he had no authority to compel Mr. Tampoare to pay disgruntled members their monies and asked the accusers to have faith with the police who had already commenced probe into the matter.
According to the Authority, it would make sure that OMCs that lift goods supplied under the “gold for oil” scheme pass the price on to customers appropriately.
However, it was observed that the NPA’s control over petroleum product prices was only temporary.
The price at which the BIDECs will sell the products to oil marketing companies (OMCs), according to a statement from the NPA seen by GhanaWeb Business, “will also be approved by the NPA.”
“The applicable exchange rate for pricing the products supplied under G4O will be based on the average rate at which the gold was purchased from licensed gold exporters by the BoG…The BoG ordinarily purchases the gold aggregated by the Precious Minerals Marketing Company (PMMC).
The National Petroleum Authority, in the statement disclosed that Ghana paid US$40 million for about 40,000 metric tonnes of diesel in the first consignment of its gold-for-oil programme.
The gold-for-oil programme is to allow government pay for imported oil products with gold in a direct barter with gold purchased by the central bank.
The move, announced by Vice President, Dr Mahamudu Bawumia will serve as an intervention to help stabilise prices of fuel products, as well as, reduce pressure on Ghana’s foreign exchange.
The first oil consignment arrievd in January 2023.
Below is the full statement by the NPA:
FULL IMPLEMENTATION OF THE GOLD FOR OIL PROGRAMME
1. The implementation of the government’s Gold for Oil (G4O) programme commenced with the arrival of the first consignment of about 40,000 metric tonnes of diesel on January 15, 2023, valued at about US$40 million.
2. The prime objective of the programme is to use additional foreign exchange resources from the Bank of Ghana’s Domestic Gold Purchase(DGP) programme to provide foreign currency for the importation of petroleum products for the country which currently stands at about US$350 million per month.
3. Payment for oil supply is to be done in two channels: by way of barter trade where gold is exchanged for oil or via broker channel where the gold is converted into cash and paid to the supplier.
4. The first consignment of 40,000 metric tonnes of diesel constitutes about 10 percent of the country’s combined monthly demand for petrol and diesel.
5. The plan is to gradually increase imports under G4O to constitute about 50 percent of the country’s total demand for petrol and diesel by March 2023.
6. The implementation of the G4O will ease pressure on the dollar (the currency used for the importation of petroleum products) and avoid the occasional increases in petroleum prices resulting from the depreciation of the cedi against the dollar.
7. The programme will ensure that the cost of importing the products from international oil traders is comparatively cheaper.
8. The consequent reduction in foreign exchange pressures and premiums charged by international oil traders as well as efficiency gains from the value chain will lead to lower ex-pump prices in the country.
9. To ensure that the price of petroleum products imported under the G4O programme reflects at the pumps to benefit the consumer, the National Petroleum Authority (NPA) will regulate the prices of the products in the interim until the volumes increase significantly.
10. NPA will work with Bulk Oil Storage and Transportation Company Limited (BOST) to negotiate prices with international oil traders to ensure that the landed cost of products procured under the programme are always competitive.
11. The price at which BOST will sell the products to Bulk Import, Distribution, and Export Companies (BIDECs) will be approved by the NPA. The price at which the BIDECs will sell the products to Oil Marketing Companies (OMCs) will also be approved by the NPA.
12. The applicable exchange rate for pricing the products supplied under G4O will be based on the average rate at which the gold was purchased from the licensed gold exporters by BoG. The BoG ordinarily purchases the gold aggregated by the Precious Minerals Marketing Company (PMMC)
13. The NPA will put measures in place to ensure that OMCs that lift products supplied under the G4O programme pass the price on to consumers accordingly. In this respect, BIDECs and OMCs who lift and supply G4O products will sell at the ex-refinery and ex-pump prices that will be determined by the NPA. If there must be a comingling of products supplied under G4O and other sources, the ex-refinery and ex-pump prices will be computed using a weighted average.
14. All BIDECs and OMCs who wish to purchase products under the G4O programme will be required to sign off an undertaking confirming their willingness to comply with the terms and conditions for partaking in the purchase and sale of G4O products.
The lone oil refinery in the nation, TOR, is struggling with a lack of crude oil as well as other issues like piled-up debt and defective equipment.
The management of TOR requested permission from the Energy Ministry in April 2022 to work with participants in the commercial sector to modernize the oil refinery.
Because of this, Nana Amoasi VII, the executive director of the Institute for Energy Security (IES), has urged the government to urgently relocate the oil refinery out of the way of all political cycles.
He stressed that the activities of politicians at the Tema Oil Refinery need to end abruptly.
“You go to TOR and you can have seven people sitting on a desk doing nothing. That is why we need to move TOR away from the political cycle and the politicians. Let us introduce some private hands that have the capacity to introduce some funding for the revamp of TOR and its operations,” the Executive Director of the Institute for Energy Security said.
It would be recalled that the Institute for Energy Policies and Research (INSTEPR) late last year noted that about $500 million was needed to revamp the Tema Oil Refinery.
INSTEPR wondered why government, the majority shareholder of the oil refinery, has stayed mute on how to get the refinery working to produce oil to cushion Ghanaians amidst the hike in petroleum products – petrol – diesel – LPG at various pumps.
In a release sighted by GhanaWeb, the policy think tank asserted that the Finance Ministry, per report was cash-strapped hence, its inability to pump money into the almost dead refinery.
But the Deputy Energy Minister, Andrew Egyapa Mercer, said he was optimistic the oil refinery will soon commence operations.
The NPA claims that this will result in cheaper ex-pump prices across the nation.
The NPA said in a statement released yesterday in Accra that it would collaborate with the Bulk Oil Storage and Transportation Company Limited (BOST) to negotiate prices with the world’s oil traders in order to guarantee that the landed cost of goods purchased through the program always complies with competitive standards.
The statement said all Bulk Import, Distribution, and Export Companies (BIDECs) and Oil Marketing Companies who wish to purchase products under the G4O programme would be required to sign off an undertaking confirming their willingness to comply with the terms and conditions for partaking in the purchase and sale of G4O products.
The implementation of the government’s G4O programme which commenced with the arrival of the first consignment of about 40,000 metric tonnes of diesel on January 15, 2023, valued at about US$40 million.
The first consignment of 40,000 metric tonnes of diesel, the statement explained constituted about 10 per cent of the country’s combined monthly demand for petrol and diesel and is expected to gradually increase imports under G4O to constitute about 50 per cent of the country’s total demand of petrol and diesel by March 2023.
The statement stated that the implementation of the G4O would ease pressure on the dollar (the currency used for the importation of petroleum products) and avoid the occasional increases in petroleum prices resulting from the depreciation of the cedi against the dollar.
It said the programme would ensure that the cost of importing the products from international oil traders would be comparatively cheaper, adding “payment for oil supply is to be done in two channels by way of barter trade where gold is exchanged for oil or via broker channel where the gold is converted into cash and paid to the supplier.”
The statement said the consequent reduction in foreign exchange pressures and premiums charged by international oil traders as well as efficiency gains from the value chain would lead to lower ex-pump prices in the country.
The NPA explained that “all these would ensure that the price of petroleum products imported under the G4O programme reflects at the pumps to benefit the consumer, the National Petroleum Authority (NPA) will regulate the prices of the products in the interim until the volumes increase significantly.”
“The price at which BOST will sell the products to bulk import, distribution, and export companies (BIDECs) will be approved by the NPA and the price at which the BIDECs will sell the products to oil marketing companies (OMCs) will also be approved by the NPA,” it added.
He said this will also help reduce the Continent’s dependency on foreign aid.
He noted that Africa receives only 4% of global foreign direct investments and its share of manufacturing value-added is no better adding that the continent needs to do better to hasten the pace of economic development.
Mr Ofori-Atta said, “The private sector has to be an important financing partner if we are to meet our infrastructure requirements.”
He asserted that Africa is, “rich in natural resources and in agriculture potential with over half of the world’s uncultivated agriculture land. We are also rich in the most important resource of all; a vibrant and growing young population”.
The minister who was addressing other Finance Ministers from some African countries at the first Compact with Africa Ministerial meeting in Accra on Wednesday said the compact offers Africa the support to “redouble our efforts in pursuing our own agenda and importantly a framework that offers us the opportunity to work together”.
He contends that for Ghanaians to breathe a sigh of relief amid the economic crisis, the government must stop the inflation from skyrocketing.
According to a tweet seen by GhanaWeb, “Everyday medications, salt, gari, and cooking oil are only a few of the things whose costs are always rising. If you wait a few hours to purchase a product, you’ll probably discover that the price has dramatically increased.”
Read the full story originally published on November 6, 2022 by www.ghanaweb.com.
Former President John Dramani Mahama has expressed worry over the high inflation rate that has witnessed the price of basic food items increase each passing day.
Mr Mahama has once again called on the Akufo-Addo government to work around the clock and find a lasting solution to the economic crisis. In his public lecture ‘Building The Ghana We Want’ delivered on October 27, the 2020 flagbearer of the National Democratic Congress outlined some measures that can help save the situation.
In a tweet dated November 5, Mr Mahama lamented the current price of salt and gari which has now become expensive to the ordinary Ghanaian under the NPP administration.
“Prices of items including everyday medication, salt, gari and cooking oil, are constantly on the rise. If you do not buy an item at a particular point in time, you are likely to find that the price has significantly increased a few hours later,” read Mahama’s tweet sighted by GhanaWeb.
Meanwhile, President Nana Addo Dankwa Akufo-Addo has asked to have faith in his government to turn around the woes of the state.
On Sunday, October 30, the president referenced how the New Patriotic Party managed to properly handle the COVID-19 pandemic in Ghana at a time when developed nations were struggling to contain it and assured that they will restore the economy.
“When I said, at the height of the COVID pandemic, that we knew what to do to bring the economy back to life, but not how to bring people back to life, it was not said in jest.”
“We had done it before, and we were on course to doing it again. Ghana’s economy grew by a remarkable 5.4% in 2021, signifying a strong recovery from the 0.5% growth recorded the previous year due to the COVID-19 pandemic,” said Akufo-Addo.
