Joy Business Report @1

The Institute of Economic Affairs has charged government to take bold and innovative measures to mobilise resources and allocate them judiciously to support long-term sustainable growth. This it believes is capable of delivering sufficiently-high living standards to Ghanaians and moving the country out of poverty within a generation.

Government has approved ¢43,984,017.70 to the Ministry of Food and Agriculture to combat the Highly Pathogenic Avian Influenza (HPAI) and strengthen institutional capacity against any future occurrences. The amount will cover the procurement of 33 cross country 4×4 vehicles, 275 motorbikes, compensation payments to farmers, active disease surveillance of domestic and wild birds’ population, stamping out, decontamination and disposal materials, among others.

The International Monetary Fund has charged African governments to undertake fiscal consolidation due to increasing debt vulnerabilities on the continent. According to the Fund’s October 2021 Regional Economic Outlook report, it is worried about the state of high debts among African countries since it could stifle economic growth.

Ghana’s high levels of public debt is likely to remain a concern for investors in the years ahead. According to Fitch Solutions 4th Quarter 2021 Country Report, a sustained fiscal deficit – albeit a moderately narrowing one – will see the country’s debt stock continue to rise over the coming years.

Ghana may have no option than to return to the International Monetary Fund (IMF) for financial support if its debt continues to rise. The debt, which is presently a little above ¢335 billion, continues to surge and create problems for the economy. According to a Bloomberg survey, the country may have to pay a higher premium if it returns to the international capital market next year to issue a Eurobond.

The Energy Ministry has rejected claims by the opposition National Democratic Congress (NDC) that levies imposed on petroleum products are responsible for the current price hike at the pumps. Communications officer of the NDC Sammy Gyamfi, at a press conference on Monday, argued that the 60% increase in revenue from the country’s oil sector makes it untenable for government to maintain the taxes still.

Government will soon commission four new vehicle assembling plants, a move that will cement the country’s position as a car-manufacturing hub in West Africa. According to a Deputy Minister of Trade and Industry, Nana Ama Dokua Asiamah-Adjei, Ghana’s Home Grown Automotive policy which is among the best on the African continent has enabled this achievement.

Government 3 year bond falls short of target by 26% as liquidity tightens on the market.

The Bank of Ghana is warning the general public to be wary of a money-doubling scheme operating in Ghana under the pseudo name “Worldremit”, saying, the scheme is fraudulent and does not reward investors as promised. According to the Central Bank, this fraudulent scheme is distinct from the globally renowned Fintech, “WorldRemit” which is in the business of international fund transfers.

The month of September 2021 recorded the highest inflation rate of 10.6% since the economy started picking up from the effects of the Covid-19 pandemic. According to the Ghana Statistical Service, the increase in the price of Housing, Water, Electricity, Gas and other Fuels (18.7%) triggered the hike in inflation.