Earlier reports suggested that in 2024, MIIF, operating under the Ministry of Finance, underwrote an overdraft facility for Goldridge Limited through Fidelity Bank.

However, MIIF allegedly defaulted on repayment, leading to the reported seizure of funds.

In a statement, the bank clarified that it had facilitated a pre-settlement of a forex transaction, expecting MIIF to fulfill its obligations within the agreed timelines.

“MIIF experienced delays in settling their portion of the transaction in forex. Subsequently, MIIF took the necessary measures to address the overdue amount and fulfill their commitments under the agreement,” the statement added.

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She disclosed this initiative during her vetting before the Appointments Committee on Wednesday, January 22, 2025.

The proposed bank, to be set up in collaboration with the Ministry of Finance, will provide women in business with access to credit at low-interest rates and flexible repayment terms.

Dr. Lartey emphasized that this initiative aims to address the financial challenges faced by women in growing their businesses.

“Many women have the ideas and skills but lack the financial resources to take their businesses to the next level. The Women Development Bank will bridge that gap and empower them economically,” she said.

Highlighting the broader vision of the ministry, Dr. Lartey explained that the bank would not only focus on access to credit but also offer training and capacity-building programs.

“We will ensure that women receive the financial literacy and business development training they need to maximize the benefits of these loans. This is about building sustainable businesses that can thrive and contribute to the economy,” she added.

The minister-designate expressed her commitment to championing policies that prioritize the welfare of women and children, emphasizing the transformative impact of economic empowerment. “An empowered woman strengthens her family and community.

This initiative is a step toward breaking the cycle of poverty and creating opportunities for all,” Dr. Lartey concluded.

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The re-emergence which has claimed five lives with several properties destroyed has raised safety concerns, prompting the bank to take immediate precautionary measures.

In a statement, the Bank assured that all its staff members are safe and accounted for.

GCB further assured it is collaborating with security services to monitor the situation and will provide updates on when the branch will resume operations.

To mitigate the inconvenience caused by the closure, the bank has reminded customers that its nearby Kadjebi and Jasikan branches as well as its digital banking platforms, remain fully operational for all banking needs.

“GCB Bank PLC reaffirms its commitment to delivering value and exceptional service at all times. We sincerely apologise for any inconvenience caused during the temporary closure,” the statement added.

Meanwhile, following the deployment of a joint Police and Military team by the government, the Ghana Police Service has said calm has been restored.

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Speaking on Joy News’ PM Express Business Edition on Thursday, January 16, he said the accusations do not align with the truth of his actions or the principles he upheld while leading the bank.

“It started with investigations at EOCO, which took a year or more, probably two years,” Kofi Amoabeng recounted.

“Then the file was sent to the Attorney General’s Department. I was surprised that they filed charges against me because I had left the bank before the reported incidents.”

Kofi Amoabeng explained that the charges stemmed from money he allegedly moved from UT Bank to UT Holdings during his tenure as CEO. However, he argued that these transactions, if they occurred, would have had clear timelines and accountability mechanisms.

“All investments have a maturity of at most one year. In the 20 months that I wasn’t there, every investment should have matured. Investors would either renew, roll over, or withdraw their money. No one has complained that their investment went missing,” he stated emphatically.

He highlighted the lack of evidence tying him directly to the alleged misappropriation.

“When witnesses were brought, no one had seen any signature of mine instructing the movement of these investments. Nobody has seen me physically carrying money anywhere. So how could I have moved investors’ funds?” Amoabeng questioned.

Reflecting on the ongoing court case, which has stretched over six years, Prince Kofi Amoabeng expressed frustration but remained optimistic.

“I think it’s deliberate,” he said. “Initially, of course, the government wanted to score cheap points. But as investigations go on, I’m sure the judge will see the truth of the matter.”

Kofi Amoabeng expressed confidence in his innocence.

“I am extremely positive about not being jailed or anything being found against me. I know what I did,” he said.

He then delivered a poignant analogy to convey his disbelief at the accusations.

“It’s only in Africa that you might nurture and educate a child, and when that child dies, people will say the mother killed him. How could I, after toiling to build UT to this level, steal from it? It doesn’t make sense.”

He also touched on the societal negativity he believes fuels such accusations. “Ghanaians want bad stories, and we have a negativity of mind most of the time, so people want to believe such things,” he remarked.

Despite the ongoing legal battle, Kofi Amoabeng remains determined to clear his name and uphold the legacy of the bank he worked so hard to establish.

“I have faith in the system, and I believe the truth will prevail,” he concluded.

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Speaking on Joy News’ PM Express Business Edition on Thursday, January 16, he expressed concerns about the Bank of Ghana’s decisions and whether they were unduly influenced by external pressures.

“It was a very interesting comment,” Amoabeng began, referring to the Bank of Ghana Governor’s assertion that the IMF had influenced the decision.

“One, I had my suspicions that the IMF had a role to play in it, but I couldn’t confirm it. So if you ask me, I believe in what the governor said, that the IMF influenced the program.

“But then, it’s a sad statement for him to make because it means the leadership in Africa doesn’t have the independence and the will to do what is right for their country, and they have to be dictated to.”

Kofi Amoabeng pointedly questioned the specifics of the IMF’s alleged influence, especially regarding the dramatic and controversial manner in which the closure of UT Bank was executed.

“So, you want to take IMF orders to close local banks. Did the IMF ask them to close UT Bank at 6 a.m. with Bank of Ghana officials and the police in Rambo-style to go and remove the signage? Was that precision by the IMF? So, who did that?”

He also criticised the broader implications of the actions taken, extending beyond the bank itself.

“Did the IMF tell them that they should also attack the other UT companies, to collapse the whole UT group? Because that’s what they did. They closed the accounts of all UT companies, including UT Holdings. Did the IMF tell them to go after the founder who had resigned 20 months before the closure?”

For Prince Kofi Amoabeng, the process highlighted a lack of foresight and care for the broader consequences on stakeholders.

“There are a lot of questions. I don’t live in the past, but this is a current thing, and you brought it up, so I think it’s quite worrying—or should be worrying for Ghanaians—that we are appointing people into powerful positions, and then they come back and tell us that they were ordered to do it, without reference to how it’s going to affect the staff, how it’s going to affect the investors.”

He reminded viewers of UT Bank’s stature and the lives tied to it.

“Don’t forget, UT Bank was a listed company. We had about 15,000 individuals owning shares, and the government didn’t address any of these things at all. Was that all under the instruction of the IMF?”

Kofi Amoabeng concluded with a critical reflection on leadership and sovereignty in Ghana’s financial management.

“What is said is very shallow on the surface. It only exposes the governor’s position, and of course, it shows that the economy is very weak, and we have leaders who just take in anything that is ordered from the imperialists or the developing partnerships, so to speak.”

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In an interview on Joy News’ PM Express Business Edition on Thursday, January 16, Amoabeng questioned the independence of African leadership and the decision-making processes that led to the collapse of his bank.

“It was a very interesting comment,” he said, referring to the Bank of Ghana Governor’s recent comment that the IMF influenced the banking sector reforms.

“I had my suspicions that IMF had a role to play in it, but I couldn’t confirm it. So, if you ask me, I believe in what the governor said, that the Bank of IMF influenced the program.”

However, Kofi Amoabeng expressed disappointment with what such revelations imply about Africa’s leadership.

“It’s a sad statement for him to make because it means the leadership in Africa don’t have the independence and the will to do what is right for their country, and they have to be dictated to.”

The former banking mogul did not hold back his criticism of the processes used during the UT Bank closure.

“So, you want to take IMF orders to close local banks? Did IMF ask them to close UT Bank at 6 a.m. with Bank of Ghana officials and the police in Rambo style to go and remove the signage? Was that precision by the IMF? So, who did that? I mean, the process was certainly wrong.”

He raised further questions about the aftermath of the bank’s closure, accusing the authorities of going beyond IMF directives.

“Did the IMF tell them that they should also attack the other UT companies to collapse the whole UT Group? Because that’s what they did. They closed the accounts of all UT companies, including UT Holdings. Did the IMF tell them to go after the founder, who had resigned 20 months before the closure?”

Kofi Amoabeng lamented the lack of consideration for the broader implications of such actions.

“There are a lot of questions. And I don’t live in the past, but this is a current thing, and you brought it up, so I think it’s quite worrying—or should be worrying for Ghanaians—that we are appointing people into powerful positions, and then they come back and tell us that they were ordered to do it without reference to how it’s going to affect the staff, how it’s going to affect the investors.”

He highlighted the human and financial toll of the bank’s collapse, reminding the public that UT Bank was a listed company.

“Don’t forget, UT Bank was a listed company. We had about 15,000 individuals owning shares, and the government didn’t address any of these things at all. Was that all under the instruction of IMF?”

For Kofi Amoabeng, the revelations expose deeper issues about the nation’s governance and economic sovereignty.

“What is said is very shallow on the surface. It only exposes the governor’s position, and of course, it shows that the economy is very weak. And we have leaders who just take in anything that is ordered from the imperialist or the developing partnerships, so to speak.”

Prince Kofi Amoabeng’s reflections bring to light critical questions about leadership, economic management, and the long-term consequences of decisions made under external influence, leaving Ghanaians to ponder the true cost of such actions.

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Speaking during his vetting before the Appointments Committee of Parliament on Monday, January 13, Dr. Forson clarified that his comments had been misrepresented in media reports.

“I didn’t say I was going to request additional finance from the IMF,” he stated. “It’s inaccurate reportage. What I said was that we could request additional finance if the need arises.”

Dr. Forson emphasized that his remarks were speculative and contingent on future developments.

The Finance Minister-designate explained that his statement was intended to underscore the importance of flexibility in managing the nation’s economic affairs.

He argued that the possibility of seeking additional IMF support should not be ruled out entirely but clarified that such a decision would only be taken if circumstances warranted it.

Dr. Forson urged the media to exercise caution in reporting his statements to avoid unnecessary public misinterpretation.

He reaffirmed his commitment to prudent financial management and pledged to explore all viable options to ensure economic stability for the country.

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This was disclosed by the Finance Minister-designate, Dr Cassiel Ato Forson, on Thursday.

President John Mahama, who was sworn into office this week after beating the ruling party candidate in December’s election, picked the former minority leader in parliament to serve in the key post of finance minister.

“We are committed to work with the IMF, but we also want to ensure that we can raise financing; additional finance, working with IMF and other domestic, international partners,” Forson, told reporters, ahead of a meeting with an IMF team that is currently visiting Accra.

“The reliance on Treasury bills and others has not been very helpful,” said Forson, who also served as a deputy finance minister before.

The IMF did not immediately respond to a request for comment.

Mr Forson, a 46-year-old chartered accountant who holds a Masters degree in taxation from Oxford and a doctorate in finance from a local university, said the new administration would also cut public spending to help lower inflation further.

“There is a lot of wastage in the system and we will cut them,” he said, adding that the move will also help the government to restart domestic bond issuance by mid-year.

The West African gold and cocoa producer defaulted on most of its external debt in 2022, leading to a painful restructuring which is at its tail end.

Mahama’s government would conclude the process by striking a deal with its non-Eurobond commercial creditors, Forson said.

REVISITING IMF DEAL

The new president, who previously occupied the office in 2012-17, had pledged to renegotiate the terms of Ghana’s bailout deal with the IMF during the campaign.

But market participants have taken the view he had limited room for manoeuvre and was unlikely to abandon the current IMF programme in spite of that campaign rhetoric.

His promise mirrored those of other reformist candidates elected into office in emerging markets last year, including Sri Lanka’s Anura Kumara Dissanayake, who rode on a promise of reconsidering the terms of an IMF programme and debt restructuring.

Mahama has pledged to swiftly assemble a government able to rapidly address growing discontent by boosting the economy and creating jobs.

He also picked John Abdulai Jinapor to serve as energy minister and Dominic Akuritinga Ayine to the post of attorney general and justice minister, the presidency said on Thursday.

The new government has inherited an economy emerging from its worst crisis in a generation.

Ministerial nominees have to be approved by Parliament, where Mahama’s National Democratic Congress (NDC) party holds a two-thirds majority.

Forson pledged to overhaul the management of the crucial cocoa sector, which has been facing challenges in recent years.

“We need to look at the issues of funding, diseased crops and production very well. The whole sector needs an overhaul,” he said.

Forson was charged in connection with the loss of public funds through an ambulance supply deal when he was deputy finance minister, before being acquitted by the courts.

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The country’s exposure to the Fund stood at 2.242 billion Special Drawing Rights, an equivalent of $2.914 billion as of October 31, 2024. The West Africa nation until recently was the most indebted country to the IMF.

The country’s exposure represented 17% of the total Africa borrowings from the IMF.

Democratic Republic of Congo came 1^st with an indebtedness of $2.256 billion SDR to the IMF.

Zambia placed 3^rd with an SDR of 1.272 billion indebtedness to the IMF.

Ghana and Zambia have defaulted on their loans leading to seeking assistance from the IMF.

According to the Fund’s Quarterly Finances, the country’s outstanding concessional loans to the Bretton Wood institution were higher than what was recorded in July 2024.

Ghana went to the IMF in January 2023 to seek economic assistance after its economy went through severe challenges. The IMF in May 2023 approved a $3 billion bailout package to revive the Ghanaian economy.

So far, the nation has received $1.92 from the Breton Woods institution under the Economic Credit Facility Programme.

The nation’s loan exposure to the Bretton Woods institution is classified as concessional lending with low-interest financing.

The PRG Trust provides loans on concessional terms to qualifying low-income member countries.

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The drop came as UK 10-year borrowing costs surged to their highest level since the 2008 financial crisis when bank borrowing almost ground to a halt.

Economists have warned the rising costs could lead to further tax rises or cuts to spending plans as the government tries to meet its self-imposed borrowing target.

According to several media reports, a spokesperson for the Treasury said: “No one should be under any doubt that meeting the fiscal rules is non-negotiable and the government will have an iron grip on the public finances.”

It added that the chancellor would “leave no stone unturned in her determination to deliver economic growth and fight for working people”.

The BBC has contacted the Treasury for comment.

Earlier, the government said it would not say anything ahead of the official borrowing forecast from its independent forecaster due in March.

“I’m obviously not going to get ahead… it’s up to the OBR (Office for Budget Responsibility) to make their forecasts.”

“Having stability in the public finances is precursor to having economic stability and economic growth,” the Prime Minister’s official spokesman said.

Shadow chancellor Mel Stride claimed that the Chancellor’s significant spending and borrowing plans from the Budget are “making it more expensive for the government to borrow”.

“We should be building a more resilient economy, not raising taxes to pay for fiscal incompetence,” he said in a post on X.

The warning comes after the cost of borrowing over 30 years hit its highest level for 27 years on Tuesday.

Meanwhile, the pound dropped by as much as 1.1% to $1.233 against the dollar, marking its lowest level since April last year.

The government generally spends more than it raises in taxes. To fill this gap it borrows money, but that has to be paid back – with interest.

One of the ways it can borrow money is by selling financial products called bonds.

Gabriel McKeown, head of macroeconomics at Sad Rabbit Investments, said the rise in borrowing costs “has effectively eviscerated Reeves’ fiscal headroom, threatening to derail Labour’s investment promises and potentially necessitate a painful re-calibration of spending plans.”

Globally, there has been a rise in the cost of government borrowing in recent months sparked by investor concerns that US President-elect Donald Trump’s plans to impose new tariffs on goods entering the US from Canada, Mexico and China would push up inflation.

The prospect of those policies is colliding with separate concerns about growing US debt and persistent inflation, which could also keep borrowing costs high. In the US, interest rates on 10-year government bonds also surged on Wednesday,in part reflecting new data on prices,before dropping back at mid-day to more than 4.7%, still the highest level since April.

As investors respond to changes in the US bond market, the effects are being felt globally, including in the UK.

Danni Hewson, head of financial analysis at AJ Bell, said the UK rises were similar to those in the US.

“US Treasury 10-year yields have jumped to the highest level since April, whilst in the UK 10-year borrowing costs have soared to their highest levels since the financial crisis,” she said.

Adding: “It may be a global sell-off, but it creates a singular headache for the UK chancellor looking to spend more on public services without raising taxes again or breaking her self-imposed fiscal rules.”

Ms Hewson said that with less than two weeks before Donald Trump returns to the Oval Office, “uncertainty about his tariff plans are already rattling investor nerves.”

The official forecaster, the Office for Budget Responsibility (OBR), will start the process of updating its forecast on government borrowing next month to be presented to parliament in late March.

“I would suggest that, if possible, the government should not abolish the E-Levy,” he said.

He explained that the proceeds from the tax should be used to support Ghanaian traders, particularly small and medium-sized enterprises (SMEs) including the President’s proposed Women’s Development Bank.

“We can use the proceeds from the E-Levy to provide access to finance for SMEs and for the women that the President is so concerned about.”

Before winning the 2024 election, President Mahama promised to abolish the E-Levy, which was introduced by the Akufo-Addo government. In his campaign to empower SMEs, he also promised to establish a Women’s Development Bank—a financial institution that would offer loans to women at low interest rates.

Dr Obeng argued that the President would need money to establish the bank and suggested that the E-Levy could serve as a potential source of revenue to support this initiative and help various SMEs.

“This is my view, and I am expressing it because if we want to raise funds to support the informal sector, SMEs, and women, we must also think about how to generate this money.”

He added, “I have already said that we should rationalise taxes, and if there is one tax I would recommend maintaining, it should be the E-Levy. It is not only businesses that pay this tax—it is paid by all of us. Moreover, it is an existing tax that is already in place and is ongoing.”

Dr Obeng was speaking on JoyNews’ Newsdesk on Wednesday, January 8.

The E-Levy, introduced by the previous New Patriotic Party (NPP) government, was designed to broaden the country’s tax base and generate revenue for national development.

However, the tax has faced significant criticism from many Ghanaians. In response to the backlash, the government reduced the initial 1.5% charge to 1%.

Meanwhile, the Special Aide to the new President, Joyce Bawah, reassured the public earlier on JoyNews’ AM Show that the new government would abolish the E-Levy, as well as the COVID-19 levy.

The Governor of the Bank of Ghana(BoG) Dr Ernest Addison, has ruled out the possibility of the restoration of any revoked banking licenses as long as he remains in office.

This according to him is because the move was made after thorough reviews of the affected institution’s operations.

In an interview with Joy Business, he emphasised that many of the institutions engaged in risky investments and mismanagement of depositor funds.

The mismanagement he explained breached the principles of banking.

“As long as I remain Governor, none of those licenses will be reinstated. These shareholders treated depositors’ money as their own, using it to fund personal businesses or invest in brick-and-mortar projects that were not liquid enough to make resources available when depositors needed their funds,” Dr Addison explained.

The central bank between 2017 and 2-19 as part of financial reforms revoked the licenses of nine universal banks, 347 microfinance companies, 39 microcredit companies, 23 savings and loans firms and eight finance houses.

Some institutions were also merged under the Consolidated Bank Ghana (CBG) to ensure the continuity of banking services.

After several pleas for restoration, President John Mahama ahead of the 2024 election promised to reinstate the licenses.

He explained that the restoration will be preceded by a comprehensive and unbiased assessment in his quest to stabilise the financial sector and restore public confidence.

It subsequently auctioned US$480 million to the Bulk Oil Distributors on the back of foreign exchange inflows from multilateral partners.

However, the forex market started witnessing stability in October, reversing some losses incurred in the first eight months of 2024.

As a result, the Ghana cedi trimmed its year-to-date losses to 21.58% versus the US dollar, closing the year at a mid-rate of GH¢15.60 to the dollar. The unit also shed 20.78% year-to-date against the pound and 17.70% to the euro on the retail market.

The Ghana cedi faced depreciation pressures for the most of 2024 due to heightened corporate demand and poor foreign exchange liquidity, as the Bank of Ghana focused on rebuilding FX buffers to cushion the dwindling reserve.

Last week Friday, the Government of Ghana paid off coupon obligations on Eurobonds, releasing a total of about GH¢346 million.

Though Ghana’s foreign reserve stands at 3.5 months of import cover as of October 2024, analysts envisage this development as a downside risk to the supply-side intervention, which may negatively impact the GHS in the near term.

This week, however, analysts expect the Ghana cedi to be mixed as market players return to activities from the New Year holidays.

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The authorization is in accordance with Section 3.13.1 of the Ghana Interbank Forex Market Conduct rules, which mandates prior approval for local and international FX brokers.

In a notice signed by Ms. Sandra Thompson, Secretary of the Bank of Ghana, 15 FX brokers have been granted authorization effective January 1, 2025, to December 31, 2025.

These brokers include:

1. IC Securities
2. SIC Brokerage
3. Black Star Brokerage
4. Serengeti Limited
5. Obsidian Acherner
6. Regulus
7. Sarpong Capital
8. Terika Financial Services Ltd
9. Laurus Africa
10. Shadeya International Investments Ltd
11. Savvy Securities
12. GFX Brokers
13. Crown Agents (Cross-Border Payments and Financial Services Providers)
14. CSL Capital (Cross-Border Payments and Financial Services Providers)
15. StoneX Financial Limited (Cross-Border Payments and Financial Services Providers

READ THE FULL RELEASE BELOW: 

BANK OF GHANA
NOTICE NO: BOG/FMD/2025/01

AUTHORISED FX BROKERS BY BANK OF GHANA

Section 3.13.1 of the Ghana Interbank Forex Market Conduct rules stipulates:
“Local and International FX Brokers who want to operate in Ghana’s forex market are required to obtain prior approval from the Bank of Ghana at the beginning of every calendar year.”

In line with the above, the Bank of Ghana has given authorisation for the underlisted FX Brokers to operate on the Ghana Interbank FX market effective January 01, 2025, to December 31, 2025.

1. IC Securities
2. SIC Brokerage
3. Black Star Brokerage
4. Serengeti Limited
5. Obsidian Acherner
6. Regulus
7. Sarpong Capital
8. Terika Financial Services Ltd
9. Laurus Africa
10. Shadeya International Investments Ltd
11. Savvy Securities
12. GFX Brokers
13. Crown Agents (Cross-Border Payments and Financial Services Providers)
14. CSL Capital (Cross-Border Payments and Financial Services Providers)
15. StoneX Financial Limited (Cross-Border Payments and Financial Services Providers)

The Bank of Ghana reserves the right to delist any authorised FX Broker for non-performance or non-compliance with the Foreign Exchange Act 2006 (Act 723), the Interbank FX Market Conduct rules and the Post Authorisation Guidelines for Forex Brokers.

(SGD.) Sandra Thompson (Ms.)
The Secretary
2nd January 2025

POST AUTHORISATION CONDITIONS AS AN FX BROKER

i. On each trading day, authorised FX brokers shall be required to send to the BoG an interim report mid-day and end of day report when the market closes and should cover pricing and volumes. This report shall be sent to fxbrokers@bog.gov.gh.

ii. FX brokers shall adhere to all applicable requirements under the Ghana Interbank FX Market Conduct rules. Bank of Ghana (BoG) shall impose penalties and/or revoke authorisation if any FX broker is deemed to have deviated from any of the Ghana Interbank FX Market Conduct rules.

iii. An FX broker shall apply for a renewal of authorisation as an FX broker in Ghana by the end of the first working week of December of every calendar year.

iv. Restructuring of the FX broker, e.g., mergers, takeovers and any other significant changes (e.g. change of company name, etc.), must be reported to the BoG without delay. In the event of restructuring and/or changes to the FX brokers’ regulatory status, proof must be provided that the regulatory authority has either approved or has not objected to such changes.

v. An FX broker shall not take the other side of customer trades, nor should the trade be outsourced to any single third party who can skew the price according to their own trading book. If the counterparty makes its own price, then the FX broker should seek a best price from a reasonable array of wholesale market makers.

vi. An FX broker shall not buy or sell foreign exchange for its own account, nor hold, borrow or lend foreign exchange to an authorised market participant.

vii. An FX broker shall not deal directly with any corporate entity and is required to be an intermediary between banks on the Interbank Forex Market.

viii. FX brokers are to operate on a commission basis and should not include their commissions as spreads in pricing trades.

ix. An FX broker must have a robust system in place with the required safeguards against cybercrime and other forms of internet or other technology threats in line with the Bank of Ghana’s Cyber Security Directives.

x. An FX broker shall quote exchange rates that are based on actual transactions within the domestic economy in Ghana and may be required to provide evidence of that as deemed necessary.

POST AUTHORISATION CONDITIONS FOR FX BROKERS IN RESPECT OF CROSS-BORDER PAYMENTS AND FINANCIAL SERVICES PROVIDERS

i. On each trading day, authorised Cross-Border Payments and Financial Services Providers shall be required to send to the BoG an end-of-day report when the market closes. This should cover pricing, volumes, and the source of inflow. This report shall be sent to fxreturns@bog.gov.gh.

ii. Cross-Border Payments and Financial Services Providers shall desist from aggressively pricing forex. They are to ensure that their pricing reflects market dynamics and falls within the revealed rates by their banks.

iii. Cross-Border Payments and Financial Services Providers shall have up to a maximum of five (5) partner banks for the purposes of termination of forex flows.

iv. Cross-Border Payments and Financial Services Providers shall apply for a renewal of authorisation to operate in Ghana by the end of the first working week of December of every calendar year.

v. Restructuring in the form of mergers, takeovers, and any other significant changes (e.g., change of company name, etc.), must be reported to the BoG without delay. In the event of restructuring and/or changes, proof must be provided that the regulatory authority has approved or not objected to such changes.

vi. A Cross-Border Payment and Financial Services Provider must have a robust system in place with the required safeguards against cybercrime and other forms of internet or other technology threats in line with the Bank of Ghana’s Cybersecurity Directives.

vii. A Cross-Border Payment and Financial Services Provider must desist from engaging or interfacing with Money Transfer Operators (MTOs).

viii. Bank of Ghana (BoG) shall revoke the authorisation if any Cross-Border Payments and Financial Services Provider is deemed to have breached any of the conditions.

The objectives of the directive are to limit the maximum loss that Regulated Financial Institutions (RFIs) can incur in the event of the sudden failure of a counterparty or a group of connected counterparties to a level that does not endanger the RFI’s solvency; Provide direction to RFIs on regulatory requirements in order to eliminate any ambiguities in the interpretation of the rules related to limits on financial exposures; among others.

Section 92 (2)(a) of Act 930 states that the Bank of Ghana may issue directives to provide for the lending limits on credits extended to insiders and the limitations for advances or credit facilities to a single borrower.

Section 77 (1) of Act 930 provides that the BoG may, in respect of a prudential limit prescribed under this Act, impose a stricter limit for banks, specialised deposit-taking institutions or financial holding companies or a class of specialised deposit-taking institutions or a particular bank, specialised deposit-taking institution or financial holding company for the period that the Bank of Ghana considers appropriate.

The effective implementation date of the directive shall be January 1, 2026.

RFIs are expected to conduct impact assessments prior to the implementation date and where there are non-compliance with the requirements of this directive, submit a credible Board-approved plan acceptable to the BoG by June 30, 2025 detailing the manner RFIs propose to achieve compliance.

The submitted plan shall include the proposed time frame within which it proposes to become fully compliant with this Directive which shall not, in any event, exceed six (6) months from the required submission date.

This directive is applicable to all RFIs’ exposures to single counterparties and groups of connected counterparties irrespective of their performance or the quality of any pledged collateral.

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In a statement, ADB explained that the move is not exceptional but a normal process, necessary to continuously provide critical and essential services to the bank.

The statement noted that, the contract was approved within established rules, adding that the Directors were conscious of the need to remain professional in discharging their duties.

“The Board would like to assure its esteemed customers, shareholders, and the general public that it remains focused and it is effectively and professionally discharging its duties to safeguard the interest of all its stakeholders,” the statement said.

North Tongu MP, Samuel Okudzeto Ablakwa raised concerns about the approval of an electronic servicing agreement worth US$750,000 by the ADB Board.

Describing it as a “reckless and unpatriotic” midnight contract, the lawmaker in a post on social media indicated the contract was signed on December 24, 2024.

He noted that, top ADB insiders are shocked at the Board’s decision because apart from this deal not going through the audit department, negotiations with the vendor, Virtual Security Africa have not been concluded, particularly as the main agreement is still in draft form.

However, ADB’s Board of Directors have insisted that dual oversights by the Bank of Ghana and the Securities and Exchange Commission ensured that the board functions within the confines of regulation.

“As a company, ADB acts through its duly mandated corporate organs, including the Board of Directors. To ensure effective and efficient corporate governance and guarantee its continuous safe operation, the Board does not freeze or abdicate its responsibility after general elections.

“The ADB Board, in the exercise of its duties, has granted approval for the renewal of some existing but expiring contracts to ensure continuous provision of critical services to the bank. Every contract renewal approved by the Board was within its authority and in furtherance of the objectives of the bank,” the statement emphasised.

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Describing it as a “reckless and unpatriotic” midnight contract, the lawmaker in a post on social media indicated the contract was signed about three days ago.

“Deep throat sources at ADB tell me they are under extreme political pressure to effect full payment by tomorrow the 27th of December, 2024,” portions of the post read.

He noted that, top ADB insiders are shocked at the Board’s decision because apart from this deal not going through the audit department, negotiations with the vendor, Virtual Security Africa have not been concluded, particularly as the main agreement is still in draft form.

“The mad rush for midnight contracts and payments have reached uncontrollable levels despite a clear caution from the President-elect’s Transition Team — a caution consistent with what the NPP demanded in 2016,” he added.

The Chairman of the Operation Recover All Loot (ORAL) initiative disclosed he has intercepted a considerable number of internal memos on these dubious transactions.

He cautioned that public officials who succumb to unlawful political pressure and effect payments will have themselves to blame after January 7, 2025.

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Below is the post:

Intercepted memos continue to expose reckless and unpatriotic officials of the Akufo-Addo/Bawumia government for awarding sleazy midnight contracts and insisting on full payments before January 7, 2025.

The Board of the Agricultural Department Bank (ADB) met 3 days ago and… pic.twitter.com/Ddo4fZ4zPv

— Sam Okudzeto Ablakwa (@S_OkudzetoAblak) December 26, 2024

According to the BoG, Bancassurance has notably grown in Africa and around the world since the 1980’s by offering banks and other financial institutions (BOFIs), an opportunity to provide more diversified products to their customers whilst earning additional income by providing their distribution channels and other platforms to insurance companies.

Insurance companies on the other hand, can have an increased reach to a broader audience and achieve more sales by leveraging on the BOFIs’ distribution channels.

“For customers, there is convenience, as BOFIs provide a one-stop-shop for all their financial needs including insurance products. In the case of Ghana, insurance companies have resorted to entering into partnership agreements with banks for the provision of Bancassurance products through the distribution channels of the latter”, the directive said.

The BoG said its approved model for Bancassurance as emphasised in this Directive is the Distribution Partnership Model.

The model allows Regulated Financial Institutions (RFIs) to sell insurance products to their customers on behalf of an insurer using an RFI’s distribution network.

The model permits an RFI to contract one life and one general insurance company and allows for individual or retail customers to choose their desired product and insurer. The model ensures that there is no sharing of risk between the RFI and the insurer.

It also aligns with the Bancassurance model as adopted by the National Insurance Commission (NIC).

“This Directive is therefore being issued to provide BOG’s regulatory expectations to the banking industry to ensure that inherent risks associated with the product is adequately managed by RFIs as well as to further smoothen and ensure a seamless implementation of the business of Bancassurance in Ghana between the banking and insurance sectors of the economy”, the BoG said.

Sanctions and remedials

On its sanctions and remedial measures, the BoG said an RFI that fails to comply with the requirements of this Directive shall be liable to pay to the Bank of Ghana an administrative penalty of not less than two thousand penalty units and not more than ten thousand penalty units (as per section 92(8) of Act 930) as well as impose any other penalty or take any remedial action that BOG considers appropriate as set out in Act 930. 50.

“Without prejudice to the other penalties and remedial measures prescribed by Act 930, BOG may impose one or more of the following sanctions where any of the provisions herein are contravened:

a. Suspend the RFI from engaging in Bancassurance business;

b. Prohibit the RFI from further lending or taking further financial exposures, including investments, or capital expenditure;

c. Restrict payment of bonuses or excessive compensation to the defaulting key management personnel or director; and d. Suspend defaulting person from office or declare that the relevant person is no longer a fit and proper person.

Source: Joy Business

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Speaking at the Governor’s Day dinner organised by the Chartered Institute of Bankers, Dr. Addison revealed that the IMF had identified critical weaknesses in the banking system and set specific “prior actions” as prerequisites for financial assistance. Among these conditions was the dissolution of the two banks.

Total volume traded fell to GH¢762 million, down from GH¢1.5 billion recorded in the previous week.

The shorter end of the local currency (LCY) curve accounted for approximately 33% of market turnover, with a yield to maturity increasing to 25%.

On the other hand, the belly and tail segments totalled 67% of market concentration with an average Yield-To-Maturity up to 26%.

Analysts expect trade activities to remain subdued as the festive season comes up.

This is because offshore investors are adopting a wait-and-see approach amid the ongoing power transition.

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According to the Fund, a tight policy stance, supported by robust liquidity absorption operations, is warranted to ensure that inflationary pressures—stemming from the dry spell and the recent cedi depreciation—do not de-anchor inflation expectations while inflation gradually returns within the BoG target band.

In its country assessment of Ghana after the third review of the Economic Credit Facility programme, the Bretton Woods institution said continued progress in addressing the Fund’s safeguard assessment recommendations is needed to strengthen central bank independence and operational efficiency.

Rebuilding Reserves Key Priorities Under Programme

It continued that rebuilding international reserves and accelerating reforms to enhance BoG’s foreign exchange intervention framework remain key priorities under the programme.

“The overperformance of reserves accumulation targets is welcome but mainly reflects a significant expansion of the gold for reserves programme, which warrants careful management of related portfolio risks and liquidity implications. Going forward, limiting FX [foreign exchange] interventions remains key to rebuilding external buffers”.

“The BoG made welcome progress in adopting a more robust FX reference rate computation method—which would limit the occurrence of MCPs [Multiple Currency Practices]. Implementation of a formal internal FX intervention policy framework and replacement of bilateral adjudications with a transparent auction-based FX auctions—complying with MCPs policy requirements—are additional important steps to enhance the functioning of the FX market”, it added.

Steadfast and Decisive Progress Needed in Strengthening Financial Sector

The Fund also called for steadfast and decisive progress in strengthening the financial sector.

It pointed out that the BoG has appropriately intensified monitoring and escalated measures to promote timely recapitalization and steps to sustain the viability of banks.

However, it continued that progress is needed on this front as well as on the phasing out of regulatory forbearances. Given the high NPLs, the Fund added that it will also be crucial to implement robust supervisory strategies to bolster credit and operational risk management.

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This the UK-based firm says will reflect a stronger macroeconomic outlook and modest fiscal consolidation balanced against still-challenging financing conditions and political and insecurity risks.

It forecasted Gross Domestic Product (GDP) growth rate to improve driven by reforms.

“We forecast growth will improve driven by reforms and recovery from drought. Momentum in Nigeria and South Africa, the two largest SSA economies, will generate positive spillovers”.

It continued that a tighter policy should help tame inflation whilst improved growth and fiscal reforms should reduce regional government debt/GDP, while lower policy rates will ease domestic financing costs.

However, the median average financing costs will rise further, and interest/revenues will be uncomfortably high for many countries in the region.

It concluded that financing challenges will remain, particularly for those at the lower end of the rating scale including Ghana.

However, the three Common Framework restructurings are expected to be completed in 2025.

This marks a significant increase compared to the 2010–2016 period, during which 27% of Ghana’s revenue was used to service debt.

The 15-percentage-point rise in debt servicing from the 2010 – 2016 to the 2017 – 2022 period underscored the increased fiscal pressures the country faced.

Data from the Ministry of Finance reveals a sharp escalation in interest payments over the years. While GH¢36 billion was spent on debt servicing between 2010 and 2016, the amount soared to GH¢152 billion during the 2017–2022 period.

In total, Ghana’s debt servicing between 2010 and 2022 amounted to GH¢189 billion, with a staggering 81% of that paid in the latter five years.

Also, within 2010 and 2022, the nation’s lowest interest payment was recorded in 2010 which is GH¢1.44 billion and recorded its highest interest payment in 2022 which is GH¢45.69 billion as per the data from the Ministry of Finance.

The 2024 United Nations report on Unpacking Africa’s Debt also identified that the steep increase in debt servicing constrained government spending on public services and eventually led to Ghana’s being classified as one of the world’s 10 most debt-distressed nations.

The IMF revealed that, in 2020, Ghana’s debt to revenue ratio reached an all-time high of 127%, the highest in Sub-Saharan Africa at the time.

Despite the debt to revenue ratio dropping to 117% in 2022, Ghana had to default on its external debts in 2022 with the subsequent restructuring of domestic and foreign debt.

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Bitcoin has surged to a new record high, extending a rally that has seen the cryptocurrency’s price rise by more than 50% since Donald Trump’s victory in the 5 November election.

The world’s largest cryptocurrency briefly passed $106,000 (£83,890), before falling back to around $105,000 in Asia trade on Monday.

The incoming Trump administration is seen as being far more friendly towards cryptocurrencies than the Biden White House.

On Thursday, the US president-elect reiterated that he is considering creating a national stockpile of the digital currency, similar to the country’s strategic oil reserve.

In a press release, ADB categorically dismissed the claims as false and defamatory, emphasizing its unwavering commitment to professionalism, transparency, and adherence to regulations.

According to the Bank, the recent termination of employment for certain staff members, which has fueled these allegations, was a decision made by the Board of Directors during a duly convened regular meeting.

ADB clarified that, all decisions within the institution are governed by strict compliance with relevant laws, regulations, and policies.

Mrs. Eno Ofori-Atta, the Deputy Managing Director, was lauded for her high standards of professionalism and exemplary performance since joining the Bank.

“She has consistently upheld the principles of integrity and diligence, which are central to the Bank’s operations,” the statement affirmed.

The Bank further assured stakeholders of its resolve to drive economic growth through agriculture and other developmental initiatives.

It urged the public to disregard the circulating falsehoods, labelling them as malicious attempts to undermine the Bank’s reputation.

“ADB remains focused on its core mission and will not allow baseless accusations to distract from its goals.

“The Bank will not hesitate to pursue legal action against individuals or entities propagating these falsehoods,” the statement concluded.

Stakeholders have been encouraged to treat the misinformation with the contempt it deserves. ADB reaffirms its commitment to fostering economic growth and maintaining the trust of its clients and partners.

The Washington-based multilateral institution, however, said the banking sector’s overall capital adequacy indicators have improved between December 2023 and June 2024.

About two-thirds of banks are now compliant with prudential capital adequacy standards without reliefs based on higher profits and capital injections—including from the Ghana Financial Stability Fund (GFSF) (GH¢4.9 billion) and private stakeholders.

Over the same period, however, it noted that the rise in NPLs outpaced nominal credit growth and the NPL ratio increased to 24.1% at end-June 2024 (18.8% at end-June 2023).

“While NPLs are heterogeneously distributed across banks, the underlying trends reflect the 2022 economic downturn, the impact of exchange rate volatility, and implementation of the findings of Bank of Ghana’s (BoG) review of banks’ asset quality”, it mentioned.

The Bank of Ghana disclosed in its Monetary Policy Report that despite an elevated non-performing loans (NPL) profile, the banking sector remains sound, well capitalized and liquid.

It pointed out that the banking sector continued to record improvements in performance with total assets growing by 42.4% to GH¢367.2 billion at end-October 2024, compared to 3.2% at end-October 2023.

Solvency indicators also improved, with the capital adequacy ratio (with reliefs) increasing to 11.1 (14.2 %) from 7.3% (13.4%) in October 2023.

Credit risk, however, remained elevated, with the NPL ratio rising to 22.7% from 18.3% over the review period.

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“Our plans to re-negotiate have also been influenced by the current state of the economy and how the John Mahama administration wants to fast-track measures to fully stabilize the economy”, he said.

Mr Terkper disclosed this on PM EXPRESS BUSINESS EDITION with host George Wiafe on December 12, 2024.

He said the re-negotiations will likely cover issues around the Primary Balance of the country, and the processes for accounting for it.

He added that the government will take a relook at the country’s debt situation and pursue “smart borrowing” to finance expensive debts and other financial commitments.

“When you look at the current debt situation and the expected payments from 2025, the incoming NDC government has to explore innovative ways to finance these debts”, he said.

He stated that the review will also look at some of the key benchmarks under the programme and the fiscal consolidation measures being implemented.

Background

President-elect John Mahama during a recent meeting with the United Nations Resident Coordinator Charles Abani revealed that his administration will press ahead to review Ghana’s Programme with the IMF and the World Bank.

According to the President-elect, the review is to ensure that the programme is aligned with the country’s current needs.

“This adjustment is crucial and will help put the new government that would be inaugurated next year on the same springboard with our development partners to begin the rebuilding of the economy and the country,” Mr Mahama stated.

Ghana is currently under a 36-month, $3 billion Extended Credit Facility with the IMF and has also signed several agreements with the World Bank, including a $250 million Ghana Financial Stability Project and another $250 million for the Ghana Energy Sector Recovery Programme.

Dealing with Investor concerns

Mr Terkper rejected the notion that the decision to go for a renegotiation could result in some negative investor reaction, a development that could hurt the economy badly.

“We have done our engagements and are still engaging these investors on their concerns that will be factored in these re-negotiations”, he assured.

Mr Terkper disclosed that the Mahama team has already engaged development partners on this issue, hence the country will not suffer as a result of the move.

“This is one of the reasons why we are holding a National Consultative Forum on the Economy and all these concerns, including re-negotiating the IMF programme will be discussed as well”.

Proposed tax cuts

President-elect Mahama has promised to remove some taxes. Key among them are the E-levy, the COVID Levy, the 10 per cent betting tax and the Emissions Levy.

Checks by JOYBUSINESS show that the COVID-19 levy brings some GH₵13.91 every year while E-Levy brings some GH₵8.27 and the Betting Tax some GH₵5.1.

Mr Terkper maintained that the team has taken measures to ensure the expected shocks are managed and do not impact badly on the economy.

“We should not forget that all the taxes are put together. It’s about 5 percent of Ghana’s Gross Domestic Product and we can find alternatives to this. We are planning to make sure that the projects will be self-financing, this other will ensure that the economy will not suffer”, he said.

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The company’s goal is to streamline international remittances, providing Ghanaians both at home and abroad with a secure, quick, and cost-effective method for sending and receiving funds.

In today’s interconnected world, SikaFX understands the importance of dependable financial solutions that connect the diaspora with their families back home.

The platform boasts competitive exchange rates, low transfer fees, and an easy-to-navigate interface tailored to the varied needs of its users.

Key Features of SikaFX

• Fast and Efficient: Transactions are completed quickly, ensuring that recipients receive their funds without delays.

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• Loyalty Program: Customers can earn points with every transfer, which can be redeemed for charitable contributions or additional remittances. This special feature adds extra value for regular users.

• Global Reach: SikaFX supports a wide array of currencies, enabling smooth transfers across various countries.

A standout initiative from SikaFX is its commitment to “Building Communities Together by Sending with SikaFX.” This program empowers users to support social and charitable initiatives in Ghana.

Customers can choose to donate their loyalty points or make direct contributions to vital sectors such as education, healthcare, and community development.

By integrating a sense of purpose into its services, SikaFX not only facilitates financial transactions but also promotes positive social impact.

His net worth surged to $447 billion on Wednesday, per the Bloomberg Billionaires Index, after Tesla stock jumped 6% and SpaceX’s valuation leaped to $350 billion based on employee share sales.

Musk’s fortune has ballooned by $218 billion this year — a sum that exceeds the net worth of every other person on the rich list except Amazon’s Bezos ($249 billion) and Meta’s Mark Zuckerberg ($224 billion).

Musk is now more than twice as wealthy as Oracle’s Larry Ellison ($198 billion), and more than three times as rich as Warren Buffett ($144 billion).

His one-day gain — the largest in the index’s history — rivals the total wealth of Binance cofounder Changpeng Zhao, ranked 23rd with a $63.2 billion fortune. It also helped to lift the combined wealth of the 500 richest people on the planet to above $10 trillion for the first time, Bloomberg said.

Musk is now worth more on paper than the vast majority of US public companies, including Costco ($442 billion), Home Depot ($419 billion), and Netflix ($400 billion).

His wealth is largely made up of his roughly 13% stake and some contested stock options in Tesla, and his 42% slice of SpaceX. Musk’s other businesses include xAI, Neuralink, The Boring Company, and X Corp, formerly Twitter.

Tesla shares have surged more than 70% this year to $425 at Wednesday’s close, valuing the company at nearly $1.4 trillion. That figure comfortably exceeds the roughly $1 trillion market value of Buffett’s Berkshire Hathaway and approaches the $1.6 trillion value of Zuckerberg’s Meta.

The electric vehicle maker’s shares have soared as investors bet it will harness artificial intelligence in revolutionary products such as self-driving cars and humanoid robots.

Musk’s prominent role in Donald Trump’s campaign, and his emergence as a close advisor to the president-elect who’s tasked him with streamlining the US government, have also fueled optimism around his companies.

SpaceX is now valued at $350 billion based on the latest price paid by the company and its backers to buy shares from employees, Bloomberg reported Wednesday. The Starlink owner’s valuation was previously $210 billion after a secondary share sale in June.

Former President, John Mahama emerged the winner of the 2024 general elections after polling 6,328,397 representing 56.55%.

The Vice President and presidential candidate of the governing New Patriotic Party (NPP), Dr Mahamudu Bawumia, secured 4, 657, 304, representing 41.61%.

Expectations for cedi

Before the December 7 elections, the Bank of Ghana assured that it had enough dollar buffers to support the cedi.

In addition, there were fears uncertainty surrounding the elections could cause the cedi to depreciate.

However, some observers say events after the December 7 elections will not negatively impact the cedi due to the peaceful nature it was conducted.

It is anticipated that the development could result in the cedi gaining in the coming days.

For many, the peaceful elections also send a positive signal to investors and donor partners about Ghana’s matured democracy.

Some offshore investors engaged by JOYBUSINESS say Dr. Bawumia’s decision to concede defeat signaled a positive path.

Cedi news  

On December 10, 2024, the dollar was going for GH₵16.20 by some forex bureaus.

The British Pound was going for GH₵20. 20.

The Euro was trading at GH₵17.00.

Meanwhile, commercial banks are selling a dollar for GH₵14.80.

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Verdict: False

Explanation: According to a 2023 report by FactCheck Ghana and Bank of Ghana’s Summary of Economic Financial Data(2024), Ghana’s borrowing figures over the years are as follows:

From the data above, Ghana has borrowed over GHS1 trillion between 2017 and 2024, which is more than the GHS622 billion as claimed. The Ghana Fact-Checking Coalition did not find any evidence to support the claim that the Bank of Ghana printed GHS 60 billion illegally.

Source: Ghana Fact-Checking Coalition

Verdict: False!

Explanation

Data from the International Monetary Fund (IMF) and the Ministry of Finance showed that Ghana’s debt-to-GDP ratio was above 72% in 2016 when Mahama exited office, not 57%, as claimed.

Claim 2:  A Facebook user claims John Mahama, the NDC 2024 flagbearer, left office on January 6, 2017, when Ghana’s inflation was 15%.

Verdict: True!

Explanation

The Ghana Statistical Service (GSS)’s 2016 year-on-year inflation rate confirmed that the inflation rate, as of December 31, 2024, was 15%.

Claim 3:  A Facebook user claims John Mahama, the NDC 2024 flagbearer, left office on January 6, 2017, when Ghana’s unemployment rate was 8%.

Verdict: True!

Explanation

The GLSS 7 survey conducted between October 2016 and October 2017, confirmed Ghana’s labour force comprised 12,244,318 people, with 11,216,724 employed and 1,027,596 unemployed. Using the unemployment rate formula, dividing 1,027,596 by 12,244,318 and multiplying the result (0.0839) by 100%, the unemployment rate for 2016/2017 was 8.39%, rounded to 8.4%. Therefore, the social media user’s claim is true.

Source: Ghana Fact-Checking Coalition

Verdict: False!

Verification: The Global Food Security Index, which evaluates 113 countries based on the affordability, availability, quality, and safety of food, ranked Ghana 7th in Africa in its last report in 2022. Meanwhile, the country ranks 83rd globally with an overall score of 52.6.

Therefore, the claim is false.

Source: Ghana Fact-Checking Coalition

Dr Nduom’s GN Bank was affected when the government in 2017, restructured the banking sector, leading to the establishment of the Consolidated Bank of Ghana.

The march started from the Elmina Castle bridge, where Dr Nduom said: “I want them to understand that we, the people of Elmina, are resilient and unwavering.”

“We refuse to succumb to fear and we will never give up. Whether they grant us the licence or not, GN Bank will resurface after the election as promised. The Bank will resume operations from Elmina, where it all began.”

The march was largely patronised by former employees of the bank, customers and residents carrying lanterns and symbolic machetes to firm their determination.

During the procession, they intermittently poured libation at sacred intersections to appeal to the 77 deities of the ancestral land for victory against what they perceived as “malice and persecution.”

Surprisingly, the demonstrators were joined by enthusiastic people adorned in the colours of the New Patriotic Party (NPP), National Democratic Congress (NDC) and the Progressive People’s Party (PPP).

The move signified their enduring admiration for Dr Nduom as a man of integrity who genuinely assisted individuals, irrespective of their political affiliations.

Dr Nduom expressed deep sorrow over the collapse of his businesses, particularly the defunct GN Bank, and accused the current government of intentionally dismantling his enterprises due to political differences, disregarding the socio-economic repercussions.

He argued that the supportive business environment for local enterprises in Ghana had been sacrificed for political advantage, highlighting that America would not prosper if it adopted the same political practices as Ghana.

Dr. Nduom urged Ghanaians to vote judiciously in the upcoming elections, encouraging them to endorse leaders committed to safeguarding and advancing indigenous businesses.

“The future of Ghana hinges on the vitality of our local industries and enterprises; let us select leaders who will uplift, not dismantle our indigenous businesses,” he advised.

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Between September and October 2024, the total number of mobile money transactions surged from 705 million to 728 million.

This increase corresponded to a rise in transaction value, which climbed from GH¢284.9 billion to GH¢298.6 billion.

However, the mobile money float balance—funds held in accounts—fell slightly, from GH¢25.1 billion to GH¢24.2 billion over the same period.

The growth in mobile money usage reflects shifts in market conditions, despite persistent economic and regulatory challenges, such as ongoing debates over the E-levy.

The value of mobile money interoperability transactions also rose, moving from GH¢2.5 billion to GH¢2.8 billion, while the number of such transactions increased from 18.5 million to 19 million.

Additionally, the value of cheques cleared via mobile money grew from GH¢32.8 billion to GH¢38 billion, with the number of cleared transactions rising from 452,000 to 506,000.

The number of registered mobile money accounts increased from 71.2 million to 71.9 million, with active accounts slightly rising from 23 million to 23.3 million.

On the business side, the number of registered agents rose by 5,000 within the month, reaching 872,000. However, active agents saw a significant decline, dropping from 456,000 to 404,000.

Automated Clearing House (ACH) services also recorded growth. Direct debit transactions under ACH saw their total value increase from GH¢250.2 million to GH¢327.6 million, with the number of transactions rising from 53,000 to 84,000.

Similarly, direct credit ACH transactions recorded growth, with values increasing from GH¢10.3 billion to GH¢11.7 billion, and the number of transactions rising from 785,000 to 874,000.

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The aggrieved residents staged a peaceful protest, marching through some principal streets of Elmina, and expressed their dissatisfaction with what they described as a deliberate attempt by the government to destroy the legacy of their “industrious son.”

The protestors carried placards, lit lamps as symbols of their resolve, and chanted slogans as they demonstrated their commitment to seeking justice for Dr Nduom.

The leader of the group, John Quansah, known in the community as Manoma who addressed the media, emphasized the spiritual gravity of their actions.

“We are giving the government one week to restore Dr Papa Kwesi Nduom’s businesses or face the wrath of our gods. Today is Tuesday, and anytime we engage our gods on such days, they respond swiftly,” he declared, stressing their belief in divine intervention to address the situation.

The group also accused the former finance Minister, Ken Ofori-Atta of masterminding the collapse of GN Savings and Loans, adding that the situation could have been resolved without revoking GN bank’s license.

“We know that the collapse of GN Savings and Loans was masterminded by Ken Ofori-Atta. This was not an issue that required revoking the license. The situation could have been resolved if there had been goodwill. Instead, they chose to destroy the businesses of a man who worked tirelessly for this country” Mr Quansah Added.

Maame Afua, one of the leaders of the protest, attributed the collapse of Dr Nduom’s businesses to political witch-hunting by the current administration. She contrasted the relationship Dr Nduom had with previous governments to the treatment he has faced under the governing New Patriotic Party (NPP).

“Dr Nduom has served this country faithfully through his businesses and his political engagements. Previous governments, regardless of their political affiliation, recognized his efforts and worked with him. But this current NPP government has chosen to destroy everything he has built. This is nothing short of a political witch-hunt,” she said.

The demonstration saw men, women, the elderly, and children joining forces to support their cause.

Many young people said the closure of Groupe Nduom’s businesses represents more than just lost jobs.

“Dr Nduom gave us opportunities when no one else did. We cannot sit back while the government destroys what Dr Nduom has built for us. This is our fight, and we will not stop until our father and mentor get what has been taken from him” he added.

Background

Between 2017 and 2019, Ghana’s financial sector underwent a significant restructuring aimed at addressing systemic challenges, including insolvency, regulatory breaches, and poor corporate governance issues.

This exercise, spearheaded by the Bank of Ghana (BoG), resulted in the closure or consolidation of several banks, savings and loan companies, and microfinance institutions.

While the government argued that the clean-up was necessary to protect the financial system, some industry players argued that it could have been done properly without causing the massive losses that occurred.

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This donation is part of Pan-African’s 2024 focus on supporting Persons with Disabilities (PWDs) in Ghana.

Earlier this year, Pan-African also supported the Accra Rehabilitation Centre and the Ghana Society for the Socially Disadvantaged.

The borehole, located on the Ghana Blind Union’s premises, will provide a reliable source of clean water for the union’s members, staff, and other disability organizations sharing the compound.

“We are committed to promoting inclusivity and accessibility in Ghana,” said Ms. Linda Naykene, Head of Corporate Affairs, Research and Customer Experience at Pan-African. “Our support for the Ghana Blind Union and other PWD organizations reflects our dedication to empowering marginalized communities.”

Pan-African’s CSR initiatives aim to make a positive impact on the lives of people within the communities in which they operate, particularly vulnerable groups.

After pension reforms in 2010, workers’ retirement contributions in the world’s number two cocoa producer enjoyed strong growth, buoyed by a tiered scheme that allows private firms to manage some contributions.

Assets under management by the pension fund industry were GH¢78.2 billion ($4.93 billion) in June, of which over 73% were managed by 39 private fund management firms.

Ghana’s state-run pension fund handles tier one contributions towards employees’ monthly retirement benefits, which are mandatory, while private firms manage tiers two and three – mandatory and voluntary contributions respectively – for lump-sum payment at or before retirement.

The majority of contributions are invested in Ghanaian assets, including Ghana government Eurobonds.

However, private fund managers have been eager to explore offshore investment opportunities following the restructuring of 31 billion cedis of their holdings under a local debt rework.

Ghanaian laws permit private fund managers to invest up to 5% of total assets abroad, approximately 2.8 billion of current assets under management, though firms and authorities differ on the necessity of prior approval.

Some fund managers invested in offshore assets earlier this year, the sources, two in the private pension firms and one at the finance ministry said, but were stopped by the regulator, the National Pensions Regulatory Authority (NPRA).

“They (NPRA) threatened to sanction us but we didn’t find any basis in law,” one of the sources at a fund management company told Reuters.

“We have not exited but we can’t invest more (offshore). It’s a very strange development,” said the source who asked not to be named, adding that they had $5 million in offshore assets.

John Kwaning Mbroh, head of NPRA, told Reuters that “there’s no resistance” to investing pension assets offshore but the regulator needed approval from the government before signing off.

Mbroh said discussions were taking place to streamline the rules and clarify how to value offshore investments for contributors and fund managers, although he did not know when they would conclude.

‘PROTECTING LIQUIDITY’

Ghana is concluding a challenging debt-restructuring process under the G20’s Common Framework initiative, having defaulted on most of its $30 billion international debt in 2022.

Despite Ghana’s economic recovery, the cedi currency has depreciated 25% against the U.S. dollar year-to-date, having already fallen around 17% in 2023.

The source at the finance ministry, who also requested anonymity, said the ministry was concerned about the need to “balance the effects” of investing pension funds abroad on domestic liquidity and value appreciation to fund managers.

“The ministry won’t say ‘no’ but it’s about how do we protect the economy, the liquidity,” the source said.

Private pension management firms in Ghana argue that authorities are overly cautious, pointing out that local mutual funds and African pension funds invest offshore without similar concerns.

They contend the current policy, given high inflation and cedi depreciation, limits value creation and mutes gains.

They also say it is contradictory to allow foreign pension funds to invest in Ghana’s market while preventing local funds from investing abroad.

“The world over, pension funds chase value but they want us to chase inflation,” an executive of one of the top five fund managers said, adding that investing 5% of their assets abroad doesn’t even move the needle.

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The bank stated that its normal banking operations continue as it observes the suspension by the Bank of Ghana.

“We believe the concerns raised in the notice can be swiftly resolved and are committed to working closely with the Bank of Ghana to ensure compliance. We want to reassure our valued customers that this suspension does not affect CBG’s normal banking operations,” a statement issued by the bank said.

The statement clarified that, except for foreign exchange products and services, all its branches and digital platforms continue to provide customers with a full range of services.

“We fully expect to restore foreign exchange products after our engagement with the Bank of Ghana or upon the expiration of the suspension period,” the bank added.

“We apologize unreservedly for any inconvenience this situation may have caused and reaffirm our dedication to maintaining the highest standards of operational compliance across all aspects of our business,” the statement further noted.

Background

The Bank of Ghana (BoG) suspended the Foreign Exchange Trading Licence of Consolidated Bank Ghana (CBG), effective November 26, 2024, for a period of one month.

The central bank explained that the suspension follows a number of breaches of foreign exchange market regulations, including the Updated Guidelines for Inward Remittance Services for Payment Service Providers (November 2023), and the Anti-Money Laundering/Combating the Financing of Terrorism & The Proliferation of Weapons of Mass Destruction (AML/CFT&P) Guideline (December 2022), which have come to the attention of the Bank of Ghana.

According to BoG, the licence will be restored at the end of the one-month suspension period, once the Bank of Ghana is satisfied that CBG has implemented effective controls to ensure strict adherence to the foreign exchange market regulations.

The Bank of Ghana has also cautioned foreign exchange market players to strictly adhere to the applicable forex market regulations and guidelines.

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The suspension, which takes effect on November 26, 2024, according to the Central Bank, is in line with Section 11(2) of the Foreign Exchange Act, 2006 (Act 723).

In a statement, BoG clarified that the action was prompted by multiple violations of foreign exchange market regulations.

The statement cited other breaches, including the “Updated Guidelines for Inward Remittance Services for Payment Service Providers” dated November 2023, and the “Anti-Money Laundering/Combating the Financing of Terrorism & The Proliferation of Weapons of Mass Destruction (AML/CFT&P) Guideline for Accountable Institutions in Ghana,” dated December 2022, which have come to the attention of the Bank of Ghana.

Meanwhile, BoG has assured that the license will be restored at the end of the suspension period if CBG implements effective controls to ensure strict adherence to foreign exchange market regulations.

All foreign exchange market participants have been urged to comply strictly with the applicable forex market regulations and guidelines.

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Read the full statement below:

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Speaking at the Ghana CEO-Presidential Gala Dinner, Mr. Andani, who has spent over 30 years in the banking sector, called the DDEP an unprecedented declaration of financial distress for the nation—a crisis he believes is undermining private sector confidence and capital accumulation.

“In my life in banking—it’s been over 30-plus years—I’ve never seen the government broke,” Andani remarked.

“The government had never been broke until we declared the DDEP. No matter how long the government owed you money, ultimately, they would pay you.”

This faith in government reliability, Andani pointed out, was shaken two years ago when Ghana announced it could no longer fulfill its bond obligations.

Andani explained that Ghana’s capital accumulation has historically been fragile, making government support crucial for private sector growth.

Reflecting on the country’s past, he noted, “In 1979, the richest person in Ghana had $25,000.”

Despite decades of economic growth, private sector capital accumulation in Ghana remains low compared to other emerging markets, which Andani attributes to various structural and economic challenges.

The government’s inability to honor its debt commitments, Andani suggested, has cast a shadow over Ghana’s investment landscape, particularly impacting private bondholders.

“For a government to say we cannot pay… bonds that we have issued, especially to private sector people, that for me is the most shocking,” he said. Andani emphasized that the repercussions of this situation are immense, as private capital is critical for economic development and job creation.

Looking ahead, Andani urged policymakers to implement reforms that would phase out non-essential programs, create room for the private sector to stabilize, and ensure sustainable growth.

“Maybe in the new government, we could phase out some programs, push the social programs back a couple of years, and give the private sector space to recover,” he proposed.

Background on the Domestic Debt Exchange Programme (DDEP)

The DDEP, introduced by the Ghanaian government in late 2022, was designed to alleviate Ghana’s ballooning public debt by restructuring its domestic debt.

Under the program, existing bonds were swapped for new ones with extended maturities and reduced interest rates.

However, the program hit private bondholders hard, many of whom saw the value of their investments plummet.

The government argued that the restructuring was necessary to restore fiscal stability, but it sparked a backlash from financial institutions, businesses, and citizens alike, who saw the move as an indicator of a deeper economic crisis.

The program’s effects reverberated through the financial sector, with banking institutions and private sector investors absorbing the shock of significant losses.

For Mr. Andani, the DDEP’s declaration was a critical sign of financial instability that has long-term implications for the country’s economic landscape.

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The High Court, led by His Lordship Justice Nana Brew, ruled that the BoG’s final directive for CDH to liquidate assets to address solvency and liquidity issues was “unreasonable and unfair.”

The ruling did not address the repeated notices BoG sent to CDH Savings and Loans to rectify its Capital Adequacy Ratio (CAR), which had persistently fallen below the minimum requirement.

According to sources, CDH Savings and Loans did not act on these notices, despite facing significant liquidity challenges that posed broader systemic risks.

The BoG’s final two-week notice for asset liquidation was, reportedly, one of several measures extended to CDH Savings and Loans before its license was revoked.

Citing Act 930, the BoG maintains that the license revocation process was “regularly and lawfully done” to protect financial stability and denies that its actions were either “unfair or unreasonable.”

In light of this, BoG plans to file an appeal in the Court of Appeal to contest the High Court’s ruling, noting that previous license revocations as part of the banking sector cleanup have been upheld by both the High Court and Supreme Court.

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According to the court, both parties should resolve the issue through arbitration.

Delivering the ruling on November 1, 2024, Justice Brew criticised BoG’s approach, emphasising the constitutional requirement for fair and reasonable administrative actions.

The Court found BoG’s two-week deadline for CDH to liquidate assets to address its liquidity challenges “unreasonable and unfair.”

The BoG originally revoked CDH’s license on August 16, 2019, citing liquidity problems linked to CDH’s inability to sell repossessed collateral, which prevented it from meeting depositors’ withdrawal demands.

CDH’s shareholders, CDH Financial Holdings Limited, subsequently challenged the revocation, seeking to have it quashed on grounds of procedural unfairness and requesting arbitration to avoid further operational disruptions.

In his ruling, Justice Brew referred to Article 23 of Ghana’s 1992 Constitution, highlighting the obligation for fairness in administrative actions.

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In a recent press release, ADB confirmed that the branch would remain closed until the security situation improves, stating that this step was taken with the safety of staff and customers in mind.

ADB has maintained a presence in Bawku as the sole operational bank in the region for over a year. Other commercial banks previously withdrew their operations from Bawku, also due to the volatile security conditions.

By closing temporarily, ADB joins the ranks of other financial institutions prioritizing staff safety amidst the ongoing tension in the area.

The bank assured customers that its commitment to serving the people of Bawku and surrounding communities remains strong, promising a return to regular branch operations as soon as stability is restored.

In the meantime, ADB encourages customers to use its electronic banking platforms, which will remain fully accessible to facilitate transactions and maintain essential banking services.

“We remain dedicated to providing universal banking services across the country,” the statement reads, underscoring ADB’s broader mission to deliver essential financial services even in challenging conditions.

This is a platform to meet the financial needs of youth between the ages of one and 29.

The initiative comes in two forms – the BluFirst Account and the GenBlu Account, both aiming to support the financial journey of young people from early childhood through to the career stages.

The BluFirst Account is an interest-bearing account for customers aged zero to 17, allowing the young customers to begin their financial journey with support from a parent or guardian until they reach legal adulthood before the account transitions to the control of the youth themselves.

On the other hand, the GenBlu Account offers support to young adults aged 18 to 25, to help them navigate the path of student life to their first professional roles.

The proposition formed part of the bank’s commitment to drive Africa’s growth by empowering young citizens with financial literacy, banking access and mentorship across every stage of life.

The bank also launched the Ohemaa Eva Chatbot on WhatsApp as an interactive assistant to provide answers to customer questions and also enable the young clients to explore banking solutions with ease and convenience.

Speaking at the launch, the Chief Executive of the bank, Kwamina Asomaning, said the initiative was driven by the bank’s mission of positioning Africa as a hub of growth and establishing lifelong banking relationships with the youth.

“Our purpose at Stanbic Bank is rooted in the idea that Africa is our home and driving her growth is essential,” he said.

Mr Asomaning said by targeting young individuals and building relationships with them from childhood, “we are not only securing our future customers, but also investing in the financial foundations of the continent’s next generation”.

He said that Africa’s future rested on its large number of young people, hence the need for the bank to explore ways to drive their growth.

The chatbot, the CEO said, was designed to meet the growing digital preferences of young people, adding “we recognise that today’s youth prefer online interactions, so we designed the chatbot to offer round-the-clock assistance, providing answers to frequently asked questions and introducing users to products that align with their financial needs”.

Mr Asomaning further said that the bank was committed to fostering financial literacy by engaging young people on campuses across the country and providing guidance on savings, investments and basic financial management.

He said the platform would also include a learning hub where young customers could access resources to improve their financial acumen and connect with like-minded individuals.

Mr Asomaning said the bank had invested in cybersecurity and data protection measures to ensure the safety of all customer information, and added that the bank was dedicated to maintaining strict controls and continually updating its technology to defend it against any cyber threats.

He said the bank had partnered several financial technology (Fintech) companies and telecommunication service providers to ensure it extended its services to the youth in rural areas.

Mr Asomaning said the bank was now on a positive growth trajectory. “The past two years have tested the resilience of the banking sector, but we are proud to have resumed growth and plan to introduce new products to meet customer needs and create value for both the bank and its customers,” he said.

For his part, Head, Personal and Private Banking of the bank, Benjamin Mensah, also said that his outfit had invested significantly in youth development over the years, including training young entrepreneurs, promoting science, technology, engineering and mathematics (STEM) skills, donating computers to universities, refurbishing schools and supporting medical exchange programmes with a long-term view of fostering future leaders.

Mr Mensah also said that the proposition was designed to meet specific needs of the youth, empower them to make informed decisions about their personal finances, and create environments where they could connect and thrive.

“We should look at the current reserve position of the Bank of Ghana, and that should give everyone some comfort about its ability to meet market demand,” Dr Amin Adam stated.

He said this during a press briefing in Washington, D.C., held alongside the Annual IMF and World Bank meetings.

“I can tell you that the Bank of Ghana has accumulated significant reserves to meet the demand,” he added.

According to Bank of Ghana data, Ghana’s international reserves reached $7.5 billion by the end of August 2024.

Expected Inflows

The finance minister revealed that Ghana anticipates a December inflow of $360 million from the IMF, pending approval of the third program review.

“That should bring in some foreign exchange,” he noted.

Additionally, the World Bank is expected to disburse $300 million to Ghana under its Development Policy Operations (DPO) Series, further bolstering the country’s foreign currency reserves.

“In addition to what the Bank of Ghana already has, these expected inflows should help in stabilising the cedi going forward,” Dr Amin Adam remarked, addressing concerns about recent fluctuations in forex markets.

The assurance comes at a time when some forex bureaus are reportedly selling the dollar above GHS17, despite data provided to the Bank of Ghana showing transactions under GHS16.

Pressure on the Cedi: Contributing Factors

The Ghanaian cedi has faced mounting pressure over the past month, following a period of relative stability.

Market analysts attribute this volatility to a spike in dollar demand, as businesses prepare to finance imports ahead of the Christmas season.

Some commercial banks report that businesses are also rushing to restock for next year, fearing a depreciation of the cedi in the coming months.

Additional market pressures stem from speculation and concerns surrounding the upcoming December elections, which have increased demand for foreign currency, as well as the activities of speculators aiming to capitalise on uncertainties.

Bank of Ghana’s Role and Measures

The Bank of Ghana has actively intervened in the market to meet dollar demand, selling foreign currency through its dollar auction program.

It has specifically targeted Bulk Oil Distribution Firms and conducted weekly auctions for commercial banks to ensure a steady supply.

Furthermore, the Central Bank has implemented additional measures to stabilise the cedi, which it describes as part of a broader strategy to manage market uncertainty and minimise the negative impact on the currency’s value.

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