S&P Ratings: Bawumia vindicated again over economic fundamentals

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Vice President Dr. Mahamudu Bawumia’s recent comments that Ghana’s economy is built on strong fundamentals have received vindication from Standard and Poor’s (S&P) Global Ratings.

Dr. Bawumia while speaking at a Student’s Entrepreneurship Initiative programme in Tamale dismissed the minority’s concerns that the recent marginal depreciation of the cedi was occasioned by weak economic fundamentals.

Examining economic data of the recent past, the Vice President argued that low inflation, reduction of debt to GDP ratio, declining interest rates, increased growth rate, increased manufacturing and agricultural growth among other economic indicators showed that the Ghanaian economy was doing relatively well.

Dr. Bawumia asserted that the 7% depreciation of the cedi was the second lowest since 2012 and that this cannot be evidence of weak economic fundamentals.

The minority NDC was adamant in accepting Vice President Dr. Bawumia’s analysis. Deputy Minority leader James Avedzi and MP for Ketu North rejected Dr. Bawumia’s argument that the economy was doing well.

However, a 12-page report by the credit rating agency, S&P Global Ratings, published on 14th September, 2018, showed Ghana’s economic performance improved which resulted in Ghana being upgraded from B- to B.

It is stated in the report that “S&P Global Ratings raised its long-term foreign and local currency sovereign credit ratings on Ghana to ‘B’ from ‘B-‘”.

The reputable credit rating agency added that Ghana’s “outlook is stable”.

“We could lower our ratings if Ghana’s economic growth is significantly lower than we expect and if its policymaking effectiveness were to weaken, for example if fiscal deficits were to be materially larger than our expectations. We could consider raising our ratings if Ghana implements and adheres to measures that materially alleviate pressures on public finances and reduce public debt levels beyond our expectations. We could also see prospects for an upgrade if the current account deficit narrows faster than we expect and external debt and gross external financing needs are significantly reduced,” the report indicated.

In justifying the rational for the new upgrade, the report mentions among others that “the upgrade reflects our assessment that Ghana’s monetary policy effectiveness has improved, albeit from a low base, and will support the credibility of the inflation-targeting framework over the period.

“Having peaked at a seven-year high of 19.2% (year-on-year) in March 2016, headline inflation has continued to decline to 10% by mid-year 2018, supported by a relatively tight monetary policy stance. In our view, the Bank of Ghana’s (BoG) policy rate has also been fairly effectively transmitted through the financial system to market participants. The government’s recapitalization of the banking system in 2018 is a fiscal expense weighing on our fiscal assessment, but should ultimately strengthen the banks and allow them to support financial intermediation in the economy.

“The ratings are supported by our monetary policy assessment and our view of Ghana’s fairly robust economic growth prospects. The ratings remain constrained by weak public finances from both a stock and flow perspective, sizable contingent liabilities, the country’s low GDP per capita, and high external debt levels”.

The verdict by S&P Global ratings seem to have settled the debate on the economy in favor of the ruling New Patriotic Party Government. It is a vindication of Vice President Bawumia, who has maintained that the economy is better managed today than two years ago.

Source: Denis Kwakwa, NPP youth activist in Ashanti Region

Akufo-Addo commissions 20MW solar plant, inspects 1D1F project in Gomoa West

Daniel Opare
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 The President of the Republic, Nana Addo Dankwa Akufo-Addo, on Saturday, 15th September 2018, commissioned a 20-megawatt solar plant and inspected ongoing works at the Casa de-Ropa Ltd, a “1-district-1-factory” initiative, all in the Gomoa West constituency. 

Speaking at the commissioning of the 20-megawatt solar plant at Gomoa Onyaadze, President Akufo-Addo noted that the facility, constructed and operated by Meinergy Ghana Ltd., represents a significant a contribution to Government’s policy of having environmentally friendly technology in the country’s energy generation mix.

With Government having committed itself to having, by 2020, 10% of its energy generation mix coming from renewable energy, the President indicated that his administration has put in place measures “that will help us, within a decade from there, to have renewable energy as the majority of the generation mix of our country.”

This, he stressed, is to help Ghana fulfill its commitments, under the Paris Agreement, of using environmentally friendly technology to help address the issues of climate change.

In addition to this, President Akufo-Addo indicated that his government is in the process of rationalising the contribution of Independent Power Producers (IPPs) to the country’s energy development.

“When we came into office, we inherited a plethora of IPP agreements, all of whom were contracted at the time of our crisis and, therefore, left us in a weak position, and got us accepting tariff rates of 18 cents per kilowatt hour and over. In an area in the world where 10 cents per kilowatt hour is the maximum, we are producing IPP agreements at 18 cents per kilowatt hour,” he said.

The President added, “Those are not acceptable arrangements. So, in future, we are going to insist that IPP arrangements are created out of competitive bidding, because it is only by that process that we will be able to get the competitive rates that both our domestic consumers as well as our industrial users need and can work with.”

These directives, he stressed, have gone to the Ministry of Energy, Electricity Company of Ghana, for enforcement.

He assured that future agreements with IPPs will only be consented to and operationalized through competitive bidding.

“And then, we are in an age where renewable energy facilities are being produced domestically. So, we want to get to a situation here in Ghana whereby these solar panels are produced domestically. And it can be done within the confines of the one district one factory initiative,” he added.

In total, Meinergy Ghana Ltd., has installed 64,400 solar panels, 400 smart inverters and laid 15,000 DC cables, in order to set-up the 20-megawatt plant

Ghana | Atinkaonline.com 

Government provides support to over 250 Northern sector businesses

Daniel Opare
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Government has provided financial support to over 250 businesses selected from the Northern, Upper East and Upper West Regions under the Presidential Business Support Programme (PBSP).

The Presidential Business Support Programme is designed to provide funding, technical support, training, mentorship and business advisory services to Ghanaian start-ups, as well as small and medium size businesses which constitute over 80% of businesses in the country.

At a brief but colourful ceremony in Tamale on Friday 14th September, 2018 the Vice President of the Republic, Dr Mahamudu Bawumia, assisted by corporate, business and religious leaders, presented cheques ranging between Ghs10,000 and Ghs100,000 to the leaders of businesses which had successfully gone through the rigorous selection process undertaken by the National Entrepreneurship and Innovation Plan, which is under the Ministry for Business Development.

The beneficiary businesses were competitively selected through the recommendations of the Private Incubation Hubs in a transparent, efficient and equitable manner to increase the likelihood of their success and sustainability.

Reports indicate the merrymaking and media announcements, the Youth Enterprise Support programme set up under the NDC provided support to just 67 businesses, while over 2000 businesses have received support in the 19-month administration of the NPP

Speaking after the presentation, Vice President Bawumia underscored that this was yet another sign of Government’s commitment to supporting the growth of Ghanaian businesses, particularly start-ups, with about $100 million committed to supporting entrepreneurial activities in Ghana, particularly those led by women entrepreneurs.

“Today marks a very important and exciting milestone in the life of our dear Country. We have gathered here to celebrate and award financial support to the young men and women who have braced the odds to venture into the world of entrepreneurship.”

He continued,“ Through the Ministry for Business Development, government has made it a priority to create a favourable atmosphere to enable the Private Sector, including start-ups to flourish. In addition, we are working on the fundamentals of the economy, to stimulate the needed investments for significant expansion and growth of the national economy and the generation of wealth and jobs.”

Vice President Bawumia reiterated President Nana Addo Dankwa Akufo-Addo’s vision and primary objective of building the most entrepreneurial, business-friendly economy in Africa, which will create jobs and prosperity for all Ghanaians.

“This vision is clearly articulated in the Coordinated Programme of Economic and Social Policies (2017-2024) of His Excellency the President. The Government strongly believes that the private sector is a key partner and the main driver of our economic development agenda and we are therefore committed to the development of a thriving private sector in the country.”

Vice President Bawumia urged the beneficiaries to work and justify their selection by reaching beyond the shores of Ghana.

“Entrepreneurship is not an easy journey, so be courageous, take the bold steps to build your businesses and be competitive.

I would like to urge you to look beyond Ghana and set your sights towards neighbouring Burkina Faso, Mali, Niger etc. These are potential markets for your products. Also pay attention to product design and product differentiation, packaging, and marketing so that your products will meet both local requirements and global standards.”

A delighted Minister for Business Development, Dr. Ibrahim Mohammed Awal, expressed delight at the success of the programme so far, and urged the beneficiaries to work hard and create more opportunities and jobs for others.

According to officials of the NEIP, over 1,000 micro, small and medium-size businesses in the three Northern regions applied for support under the PBSP. All the businesses were given the opportunity to go through a well-structured training programme to build their capacities to manage their various businesses. The trainings were conducted by six (6) Private Incubation Hubs across the 3 regions of the North.

The businesses selected for funding cover many sectors of the economy including Agri-Business and agro-processing; Smock weaving; Information communication technology; Animal and livestock rearing; Health; Food and beverages; Fashion (Clothing & accessories) and Beauty.

Ghana | Atinkaonline.com 

Electrician gets four years for pouring acid on woman

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 An Accra Circuit Court has sentenced an electrician to four years’ imprisonment in hard labour for pouring acid on a food vendor, which caused her to suffer severe acid burns all over her body.

Benjamin Atobrah was, in addition, ordered to pay GH¢20,000.00 as a compensation to Melody Sworddol, the victim.

He pleaded guilty to causing harm and was convicted on his own plea.

Sentence was deferred in May, this year, by the Court to await a medical report on the condition of the victim, who was on admission at the Korle Bu Teaching Hospital Burns Centre, while Atobrah remained in police custody.

Police Chief Inspector Emmanuel Ohene-Agyei told the Court, presided over by Mrs. Marian Affoh, that the victim was a food vendor whilst convict was an electrician.

They both lived at La, a suburb of Accra, and had their work places close to each other.

On April 20, this year, at about 2000 hours, a misunderstanding ensued between Atobrah and one of his apprentices.

Being peeved by the situation, he took some acid from a car battery and attempted to pour it on his apprentice but he escaped.

Atobrah later said he overheard Melody gossiping about him and rather poured the acid on her.

Melody, who suffered various injuries, was rushed to the Hospital for treatment.

Atobrah was arrested and after investigations, he was arraigned.
 

Mayweather announces rematch with Pacquiao in 'nine-figure payday'

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Floyd Mayweather has said he is coming out of retirement for a rematch with Manny Pacquiao.

The undefeated American boxer posted an Instagram video of the pair meeting informally at what appeared to be a music event.

They exchange words but it is hard to hear exactly what is said.

Mayweather posted: "I'm coming back to fight Manny Pacquiao this year. Another 9 figure pay day on the way @mayweatherpromotions."

Filipino fighter Pacquiao has so far not commented, and there has been no official confirmation or other details released.

Mayweather, 41, won on points when the pair fought each other in May 2015, but the fight was widely considered to have fallen well short of the hype.

Both boxers earned tens of millions after record-breaking pay-per-view sales.

Mayweather – whose nickname is "money" – showed off a $100m (£76m) cheque he said was payment for the Pacquiao showdown.

The American was last in the ring in August 2017 for another bumper payday against UFC star Conor McGregor.

He "retired" again after winning the fight which was rumoured to have earned him around $300m.

Pacquiao, 39, is now a senator in his home country but remains the current WBA welterweight champion.

Sky News

Alvarez beats Gennady Golovkin on points to take WBC and WBA middleweight titles

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Saul 'Canelo' Alvarez claimed the WBC and WBA world middleweight titles by inflicting a first career defeat on Gennady Golovkin with a gripping points win in their Las Vegas rematch.

The Mexican claimed a frenetic final round on the scorecards which proved critical in preventing a repeat of the draw both men shared, 364 days earlier at the same T-Mobile Arena venue.

At the end of a contest which showcased the expert skill level of two of the sport's finest practitioners, Alvarez scored a 114-114 115-113 115-113 majority decision.

Golovkin, whose first defeat comes in his 40th bout – left the ring immediately without conducting an interview as his rival – fighting for the first time since serving a six-month drugs ban – celebrated.

"My corner told me that I needed to win the final round and that what's I did," said Alvarez. "I'm very emotional."

A battle to justify the hype
Alvarez looked close to tears after a decision which will again prompt controversy as, for spells in the fight, Golovkin seemed to be edging the physical side of a tactical battle, with his jab proving key early on.

But with scoring already criticised in their first bout before Alvarez's two failed doping tests in February, it is perhaps not surprising that once again controversy will remain and talk of a rematch is almost certain.

Few could argue the hype surrounding their second meeting was not justified as the bout ebbed and flowed. Celebrities including actors Will Smith and Denzel Washington, and sports stars such as Mike Tyson and LeBron James sat ringside as the capacity 20,000 inside the arena were taken in by a bout in which neither man looked like capitulating at any stage.

After Golovkin's poised jab clearly won the opening three minutes, Alvarez's response in the second – including a solid right uppercut – pointed to the back-and-forth contest that was to come.

BBC

“Persons responsible for ‘banking crisis’ will face the law” – Akufo-Addo

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The President of the Republic, Nana Addo Dankwa Akufo-Addo, has assured the Ghanaian people that “those responsible for the sequence of activities that led to the ‘banking crisis’ will face the full brunt of the law if they are found to have broken the law”.

According to President Akufo-Addo, “It is not right that the overwhelming majority of ordinary Ghanaians should pay for the actions of a greedy few, without sanction.”         

President Akufo-Addo made this known on Saturday, 15th September, 2018, when he delivered a speech at the 80th Anniversary of the Presbyterian Boys’ Senior High School, Legon.

The President stated that “the so-called ‘banking crisis’”, and the collapse and subsequent consolidation of some indigenous banks have been caused by the cutting of corners, circumvention of the laws, flouting and non-adherence to regulations, apparently with the complicity of senior officials of the Bank of Ghana.

The inefficient and poorly managed banks, as a result, required the robust intervention of the regulatory bodies to prevent the infection of the banking sector with these acts.

As a result, under the rigorous leadership of the current Governor of the Bank of Ghana, Dr. Ernest Addison, the President indicated that a number of prudent measures have been taken to save and sanitise the banking sector.

“To protect the deposits of the seven defunct banks, the Government, through the Ministry of Finance, has had to issue bonds to the tune of some GH¢8 billion in favour of GCB Bank and the new Consolidated Bank, the banks that took over the operations of the seven failed banks,” he said.

The President continued, “This is in addition to liquidity support of some GH¢4.7 billion that had been provided by the Bank of Ghana to these banks over a period before their closure. In effect, GH¢12.7 billion of public funds has been injected into these seven banks, following their malfunction.”

Depositors’ savings, he said, have been safeguarded, job losses have been minimised, and a strong set of indigenous banks is being born.

President Akufo-Addo reiterated his commitment to having two performing indigenous banks in the country than to have seven weak ones, as recent examples of Nigeria, Malaysia and others have shown.

“I have no doubt that, if these measures had not been taken, the banking system would have been seriously compromised, with dire consequences for depositors and their savings. We need urgently a vibrant banking sector that can help mobilise resources to finance our industrial, agricultural and economic transformation,” he added.

This, President Akufo-Addo stressed, is the justification for the measures of the Bank of Ghana.

Powerful Past, Prosperous Present, Prominent Future

President Akufo-Addo, who was speaking on theme of the Anniversary celebration “Powerful Past, Prosperous Present, Prominent Future”, stated that alumni (ƆdadeƐs) of PRESEC, many of whom can be described as Ghana’s “Powerful Past” and “Prosperous Present” of our country, have obtained this status and renown because they had access to education.

Future ƆdadeƐs, he added, who wish to become our nation’s “Prominent Future”, can only become so, if they receive an education.

He indicated that a survey of Ghana’s immediate past reveals that between 2013 and 2016, an average, one hundred thousand (100,000) children, every year, who passed the B.E.C.E., could not take up their places in Senior High, because they could not afford the fees, even though they had the qualifications.

If this situation had persisted for a decade, one million children would have dropped out of school at the level of Junior High School, an unacceptable outcome for any nation in the 21st century.

“It would have been too dangerous for Ghana’s stability, as we would have been building a future of hopelessness for our youth. Such a situation was intolerable, and my party and I were determined to end it. That is why the Free Senior High School policy was introduced,” he added.

The Free SHS policy, in 2017 and 2018, has resulted in 270,000 more students entering Senior High School.


Ghana | Atinkaonline.com

 

Bawumia launches Schools Entrepreneurship Initiative

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The Vice President of Republic, Dr Mahamudu Bawumia, has challenged Ghanaian youth to cultivate the spirit of entrepreneurship in order to create jobs and reduce the incidence of graduate unemployment.

Government, on its part, will create the necessary environment and incentive for Ghana’s young men and women to challenge the status quo and think outside the box in order to contribute their quota to national development. 

Vice President Bawumia assured of government’s commitment to youth entrepreneurship when he launched the Student Entrepreneurship Initiative (SEI) at Ghana Secondary School, Tamale, on Friday 14th September, 2018.

The SEI is a deliberate effort by Government to create an entrepreneurial ecosystem that promotes job creation and improvement in livelihoods. 

Under the Initiative, the Ministry of Business Development will train and stimulate at least 10,000 students annually to think entrepreneurship and engage two million students over the next 5 years.

“We are convinced that if teenagers are introduced to thinking about business concepts and the right management structure to businesses, they can expand and hone their ideas and begin to execute those ideas even before they complete their tertiary education,” Vice President Bawumia emphasised. 

Citing the results of a recent survey, the Vice President expressed disappointment that an overwhelming percentage of secondary school students preferred already established white collar jobs instead of striking out on their own to set up new ones. 

“The current situation at the Senior High School (SHS) level betrays a clear lack of the entrepreneurial conversation in their set-up” he worried. 

The survey revealed that at least 68% of the respondents both male and female preferred to be in civil service, medicine, nursing, engineering, law and architecture as well as other already established jobs. Less than 2% of the respondents preferred to be in business, the Vice President indicated, hence the decision to set up the Schools Entrepreneurial Initiative.

Vice President Bawumia was optimistic that the Initiative would produce the next crop of Ghanaian entrepreneurs.

“The tendency that these ‘STUPRENEURS’ (Student entrepreneurs) will leave Senior High Schools (SHS), University, and other tertiary institutions with high sense of business awareness and confidence, would go a long way to increase the rate of business formation in the country.

“I encourage you students to take advantage of the School Entrepreneurship Initiative to come up with Business ideas and be assured that the government would support you to realize your dreams of becoming successful entrepreneurs.”

Speaking at the launch, the Minister for Business Development, Alhaji Dr Ibrahim Mohammed Awal, urged the students to take advantage of the various programmes being rolled out by the Ministry to development their entrepreneurial skills and take control of their destinies.

“When students are exposed to business concepts and plans at an early age, there is a tendency for them to think entrepreneurial and begin to develop projects and services while in school. We aim to help you on this journey, and hope that in a few years Ghana can also boast of world renowned entrepreneurs,” he indicated. 

SEI
Schools will be encouraged and assisted to form entrepreneurial clubs with the active collaboration of the Ministry of Education and the Ghana Education Service.

The Entrepreneurial clubs will be trained by selected hubs that are already working with the Ministry of Business Development and the National Entrepreneurship and Innovation Plan (NEIP).

To generate excitement among Senior High Schools, the School Entrepreneurship Initiative will roll out a business plan competition that will set out what businesses the entrepreneurial clubs want to pursue. 

The grand finale of the Business Plan Competition will be held in Accra early next year where students of the various schools will present their ideas to a special jury. Winners of the business plan competition will then be moved around the world to experience the audacity of entrepreneurship and to understand the real world of business. This will constitute a world series of visiting places like Silicon Valley in the USA and Tech City of London.
 

Ghana’s credit ratings upgraded from 'B minus' to B

Daniel Opare
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The global and international credit ratings agency, Standards and Poor (S&P) global has affirmed Ghana’s stronger macroeconomic fundamentals. The rating agency has upgraded Ghana’s credit score from ‘B’ minus to ‘B’ with a stable outlook. 

At the same time, they have revised Ghana’s  transfer and convertibility (T&C) assessment to 'B+' from 'B'.

In it’s latest release on the credit ratings of Ghana on  Friday, 14th September, S&P Global indicated that “The upgrade reflects our assessment that Ghana's monetary policy effectiveness has improved, albeit from a low base, and will support the credibility of the inflation-targeting framework over the period”. 

The stable outlook balances Ghana's fairly robust growth prospects, decreasing inflation, and narrower current account deficits against risks from still-high budget deficits and a high stock of public sector debt.

“We could lower our ratings if Ghana's economic growth is significantly lower than we expect and if its policymaking effectiveness were to weaken, for
example if fiscal deficits were to be materially larger than our expectations. We could consider raising our ratings if Ghana implements and adheres to measures that materially alleviate pressures on public finances and reduce public debt levels beyond our expectations. We could also see prospects for an upgrade if the current account deficit narrows faster than we expect and external debt and gross external financing needs are significantly reduced” – the report indicates. 

In justifying the rational for the new upgrade, the report mentions among others that “The upgrade reflects our assessment that Ghana's monetary policy effectiveness has improved, albeit from a low base, and will support the credibility of the
inflation-targeting framework over the period.

Having peaked at a seven-year high of 19.2% (year-on-year) in March 2016, headline inflation has continued to decline to 10% by mid-year 2018, supported by a relatively tight monetary policy stance. In our view, the Bank of Ghana's (BoG) policy rate has also been fairly effectively transmitted through the financial system to market participants.

The government's recapitalization of the banking system in 2018 is a fiscal expense weighing on our fiscal assessment, but should ultimately strengthen the banks and allow them to support financial intermediation in the economy.. The ratings are supported by our monetary policy assessment and our view of Ghana's fairly robust economic growth prospects.

The ratings remain constrained by weak public finances from both a stock and flow perspective, sizable contingent liabilities, the country's low GDP per capita, and high external debt levels”.

Ghana | Atinkaonline.com 

Private investors to take over Komenda Sugar Factory –Akufo Addo

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President Akufo Addo has revealed that government intends to leave both the running of the Komenda Sugar Factory and the cultivation of sugarcane to feed the factory in the hands of private investors.

The decision, he says is part of government’s agenda to revive the $35 million Indian Exim Bank facility that has been inactive since it was launched in May 2016.

Speaking on  day one of his 4-day working visit to the Central Region, he indicated that the move is to ensure efficiency at the factory as history over the years has shown that such partnership yields better results when compared to 100% state-owned enterprises.

The factory, when fully operational, could produce 97% of Ghana’s sugar requirement, while out grower sugarcane farmers, mostly in the Central and Western Regions, could also be gainfully employed.

Government, he added will create the avenue for research institutions which are interested in coming up with the best variety of sugarcane to feed the factory to do so in order for the factory to run at its optimum level.

Ghana | Atinkaonline.com 

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