Speaking on JoyFM’s Top Story on Thursday, February 27, Prof. Bokpin said while the Akufo-Addo administration expanded Ghana’s GDP by $20 billion, data suggests that the overall financial health of the country has deteriorated.

“What is becoming clearer is that even though over $20 billion has been added to our economy, the previous government’s data exists to confirm that they left this country in a much poorer state,” he stated.

He pointed to Ghana’s rising debt burden, explaining that by December 2022, inflation had soared to 54.1 per cent, and the debt-to-GDP ratio in nominal terms had exceeded 104 per cent.

“If you look at the debt numbers, at the time, in 2017 when the NPP was describing the economy as so bad, they inherited inflation of 15.4%.

“If you look at debt service to revenue ratio, even public debt to GDP ratio without debt restructuring, the NPP have debt restructuring to be thankful for, for what they are leaving behind. Otherwise, it could have been serious.”

Prof. Bokpin further noted that poverty levels have worsened, with nearly 30 per cent of Ghanaians in extreme poverty as of January 2025.

“If you look at the poverty numbers, we are talking about the fact that approximately 30% of Ghanaians are in extreme poverty at the time the NPP was leaving office in January 2025.”

He stressed that despite record revenues and resources available to the previous government, expectations were not met, leading to widespread disappointment among Ghanaians.

“….So the fact of the matter is that much of the disappointment with the NPP had to do with the fact that the expectation was so high.

“In as much as the former Minister of Finance was saying that he added $20 billion to our economy, let’s also put on record that no government has had the kind of revenue and resources that they (NPP) had within the eight-year period. And with that massive resources at their disposal, we were expecting much and more from them,” he said.

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The report shows that gold remained Ghana’s top export totaling GH₵49.8 billion or 53.6% of total exports. This represents an increase from 50.3% recorded in the fourth quarter of 2023. Other major exports included crude petroleum, cocoa beans, cocoa paste, and natural cocoa butter, respectively. Meanwhile, the share of mineral fuels and oils in total exports fell from 23.9% in Q4 2023 to 14.4% in Q4 2024.

On the import side, diesel, motor spirit (super), self-propelled bulldozers, shea oil and fractions, and crude petroleum were the top five products imported in the quarter.

The two leading import products, diesel and motor spirit (super), accounted for GH₵13.1 billion, with diesel alone amounting to GH₵7.2 billion, representing 23.4% of total imports.

However, this marks the third consecutive quarter in which Ghana recorded a nominal trade surplus, meaning the value of trade (exports and imports) was measured at current market prices without adjusting for inflation.

In contrast, real trade, which accounts for inflation, remained in deficit. Despite the reported surplus, the data reveals a GH₵2.2 billion real trade deficit in the fourth quarter of 2024.

Additionally, while the total nominal trade value increased by GH₵57.8 billion from the first to the fourth quarter, the increase in real terms was only GH₵7.0 billion.

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The financial assistance is intended to support the recapitalization of banks and other financial institutions adversely impacted by the programme.

Andrew Amerkson, the Head of Banking and Non-Banking at the Ministry of Finance, revealed that the government is focusing on helping recapitalize at least eleven financial institutions in 2025.

His remarks were made during the launch of the Ghana Association of Savings and Loans Companies’ five-year strategic plan in Accra.

Speaking on behalf of the Finance Minister, Dr. Cassiel Ato Forson, Amerkson underscored the government’s commitment to ensuring that the institutions are adequately capitalized to enhance their operations and overall stability.

In his speech, Dr. Forson explained the background of the financial interventions aimed at stabilizing the banking sector.

“The government has long been proactive in ensuring the stability of the financial sector. We designed the Ghana Financial Stability Fund and allocated 5.7 billion cedis to recapitalize bonds, which has been critical in stabilizing the financial system,” Dr. Forson remarked.

He further emphasized the success of the Ghana Financial Stability Fund A2, which was introduced in the previous year. “At the end of last year, Fund A2 supported 11 financial institutions, including four banks, four capital market operators, and three insurance companies. This demonstrates the government’s unwavering commitment to ensuring the long-term stability of our financial sector,” Dr. Forson added.

The government’s current initiative to engage the World Bank for a 250 million dollar loan facility is seen as a key part of the broader strategy to stabilize the financial system. “We have engaged with the World Bank for a loan facility of 250 million dollars, which will specifically support the recapitalization of banks and savings and loans institutions (SDIs). This initiative is part of the World Bank-funded Ghana Financial Stability Project and aims to promote financial stability across the country,” Dr. Forson confirmed.

Looking ahead, the government is optimistic about the positive impact this financial support will have on the broader economy. “By securing this facility, we are not just addressing immediate liquidity concerns, but also ensuring that our banks and other financial institutions remain resilient and continue to contribute effectively to the economy,” he concluded.

This move comes at a critical time, as the government seeks to mitigate the financial fallout from the DDEP, which has had significant effects on local banks.

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Some sellers have already implemented the new pricing.

Samuel Azu, a cement retailer, confirmed the price hike, stating, “We have not yet increased the price, but this will take effect starting Thursday. From then on, any customer purchasing a bag of cement will need to pay GHC 120.00.”

He explained that the adjustment was necessary to sustain their business. “If you don’t have that amount, you won’t be able to buy cement in Tema or anywhere else in the country. The factories have attributed the increase to rising port tariffs imposed by the government,” Azu added.

He further highlighted the reliance on imported materials, noting, “Since most materials used in cement production are imported, any increase in costs from the source directly impacts the final price.”

Another retailer, Bismark Owusu Tetteh, expressed frustration over frequent price changes and called for stricter regulatory measures to stabilize the market.

Meanwhile, the Ghana Chamber of Construction Industry (GhCCI) has urged the government to intervene before the situation worsens.

The Chamber’s CEO, Emmanuel Cherry, emphasized the government’s responsibility in addressing the matter.

“The best person to assist us is the government, as they are the ones with the power. The mandate lies with them. We can only talk or advise, but it is their decision to act or not.”

Cement pricing was a contentious issue last year, leading to a standoff between the Cement Manufacturers Association of Ghana and former Minister of Trade and Industry, K.T. Hammond, over a Legislative Instrument (LI) aimed at regulating prices.

The initiative introduced by the former minister received mixed reactions from stakeholders in the supply chain.

As the year progresses, cement prices continue to rise, with retailers attributing the increases primarily to higher port tariffs.

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The meeting took place on the sidelines of the International Energy Week in the United Kingdom, focusing on the development of Ghana’s offshore oil and gas sector.

The East Cape Three Point Block, situated in the Offshore Tano Basin, is currently operated by Medea Development Ltd and Cola Natural Resources.

Potential partners, including Strategic Fuel Fund, Safri West Energies, and Jade Energy, reaffirmed their commitment to exploring the field, with the goal of achieving first oil production by 2028 or 2029.

They indicated that preparations were underway to commence the first exploration well drilling either later this year or early next year.

In addressing the partners, Mr Jinapor reiterated the Ghanaian government’s dedication to implementing investor-friendly policies while ensuring the country’s interests are well safeguarded.

He underscored the importance of fostering a balanced and sustainable approach to the development of Ghana’s natural resources.

The Minister further assured investors that Ghana’s upstream petroleum sector remains open to business, emphasising the nation’s strong regulatory framework and conducive investment climate.

He encouraged stakeholders to collaborate effectively in order to drive innovation and efficiency within the industry.

The meeting served as a platform to strengthen partnerships and reaffirm Ghana’s commitment to enhancing its energy sector.

With exploration efforts set to advance, the East Cape Three Point Block stands as a promising contributor to the nation’s long-term energy strategy.

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Focusing on three key landscapes — Kenya’s Greater Rift Valley, the Ghana Cocoa Belt, and the Lake Kivu and Rusizi River Basin spanning Burundi, Rwanda, and the Democratic Republic of Congo — Restore Local works with these groups to expand access to finance, strengthen technical capacity, secure policy reforms and improve impact monitoring.

“Community-led organisations are the beating heart of Africa’s land restoration efforts, but they can’t do it alone — they need more support to take their impact to the next level,” said Dr Susan Chomba, Director of Vital Landscapes at WRI.

“That’s where Restore Local comes in. We’re bringing in new partners, unlocking new resources, and amplifying their voices so that restoration efforts are not just expanded, but deeply rooted and widely embraced.”

The initiative is building on its momentum by expanding its reach, rallying even greater support for locally led restoration efforts and growing a broader movement.

This means bringing in new partners beyond those already supported by TerraFund, Restore Local’s financing arm, to drive greater impact.

“Since partnering with Restore Local, we have increased seedling production from 6,000 to 500,000 annually”, said Shiro Ndirangu, Managing Director, of Afrex Gold.

“Being a part of this initiative means restoring the environment while strengthening the community around you. Restore Local is turning action into impact, and I’m proud to be a part of it.”

Tropenbos Ghana echoed these sentiments, emphasising the restoration work their organization has been doing in the degraded Ghana Cocoa Belt.

“It is exciting to see more people getting involved,” said Kwame Sekyere, Tropenbos’ Project Manager.

As Africa faces increasing climate challenges, Restore Local is proving that locally led restoration is not just possible — it’s essential.

By mobilizing communities, policymakers, and investors, the initiative is turning grassroots action into large-scale impact, ensuring that Africa’s landscapes are not only restored but also sustained.

About Restore local

To learn more about Restore Local, visit the Restore Local Website.

This will nudge back down towards the pre-pandemic average of 12.4% year-on-year over 2015-2019.

“While Ghanaian inflation will follow a more stable and cooling path over 2025, it has started 2025 relatively sticky, coming in at 23.5% year-on-year in January. This is an acceleration from the 2024 low of 20.3% year-on-year in August 2024. Despite the slight reacceleration, inflation will continue to broadly come down and is supporting improving households purchasing power, particularly when considering inflation hit a peak of 54.1% in December 2022”, it stated in a report titled “Ghana 2025 Consumer Outlook: Growth Moves Up As Stronger Tailwinds Emerge”.

It added that the reacceleration of food inflation over quarter 4, 2024, and into 2025 is posing some concern for households over the short term.

Given that food and non-alcoholic drinks account for more than 42% of total household spending in Ghana, it pointed out that sticky prices will remain somewhat of a drag on spending and will see households retain a focus on essentials.

“Key household spending segments, such as housing and utilities as well as transport prices are however beginning to come down and are settling following the upward revision of water and electricity tariffs in July 2024”, it stated.

As inflation across the three segments settle over 2025, it alluded that households will see their purchasing power improve and demand for more non-essential segments begin to improve.

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In this role, he will support the Acting Commissioner in ensuring effective regulation, supervision, and growth of Ghana’s insurance industry.

Mr. Ohemeng-Baah is a Chartered Insurer with over 20 years of experience in both industry and academia.

He holds a Master of Laws in Insurance Law from Queen Mary University of London, a Master of Science in Accounting and Finance, and a Bachelor’s in Business Administration with a major in Insurance from the University of Ghana.

He brings extensive knowledge of Ghana’s insurance industry, along with exposure to best practices and emerging trends in insurance regulation from the United Kingdom and the United States.

His expertise includes leading multi-country software projects, raising venture capital, and exploring the role of artificial intelligence in insurance.

Mr. Ohemeng-Baah joins Dr. Abiba Zakariah, the Acting Commissioner of Insurance, who has 30 years of industry experience, to steer the National Insurance Commission into its next phase of growth.

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During his vetting before the Appointments Committee on Tuesday, February 25, Mr. Gyan-Mensah stressed that private sector involvement could provide the necessary capital injection to address inefficiencies within ECG.

“I think my minister’s position on the privatisation of ECG is necessary, given the current issues within the company. ECG urgently needs capital injection to address the inefficiencies in the system. Bringing in the private sector will play a key role in resolving these challenges and making ECG financially buoyant, which is crucial for consistent and stable power supply,” he stated.

The government has already initiated steps to introduce private sector participation in ECG’s operations, citing persistent inefficiencies and financial losses. On January 24, 2025, a seven-member committee was inaugurated to study potential participation models.

However, trade unions have expressed concerns, arguing that the move is a pretext for full privatisation, an approach they claim has repeatedly failed in Ghana.

Addressing these concerns, Mr. Gyan-Mensah clarified that the proposed privatisation would not involve ECG in its entirety but would focus on specific sections, primarily distribution, billing, and collections.

“Although I haven’t had extensive discussions with my minister on this, I am confident that Ghana’s Local Content Act will be upheld. The privatisation will not be left solely in the hands of foreign players. Local private companies will also have opportunities to participate if necessary,” he assured.

He further explained that the goal of the partial privatisation is to strengthen ECG’s operations while safeguarding national interests.

Speaking at the swearing-in ceremony of Dr. Johnson Asiama and Dr. Zakaria Mumuni at the Jubilee House, Mahama cautioned against excessive and unregulated Central Bank financing, warning that it has had devastating consequences on Ghana’s economy in recent years.

“When government resorts to unsustainable consumption and excessive money printing, the consequences can be severe—from spiraling inflation and erosion of incomes to driving millions into poverty. Such actions not only weaken public confidence in financial institutions but also threaten long-term stability,” he warned.

Mahama was firm in his stance, stating, “One thing for sure, I’m not going to come and ask you to print more money.”

His remarks come amid ongoing concerns about Ghana’s economic management, particularly the Bank of Ghana’s past role in financing budget deficits.

Excessive money printing has previously been linked to rising inflation, currency depreciation, and declining purchasing power, fueling calls for stronger monetary discipline.

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Speaking at the swearing-in ceremony, President Mahama emphasized the need for policies that protect ordinary citizens and businesses.

He highlighted the impressive track records of the new governors, expressing confidence in their ability to reset the economy and maintain price stability.

The President urged them to focus on their core mandate of reviving what he described as a collapsed economy.

He also stressed that their decisions must be human-centered, preventing burdens on private businesses.

Citing the collapse of some financial institutions in recent years, which led to job losses and business closures, he tasked the new leadership to ensure such crises do not occur under their watch.

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The funding cut has already prompted President John Mahama to direct Finance Minister Dr. Cassiel Ato Forson to seek alternative financial sources to bridge an estimated $156 million gap.

During his vetting on Monday, February 24, 2025, Thomas Ampem highlighted Ghana’s long-standing dependence on donor support for development initiatives but noted a consistent decline in aid inflows over the years.

“This happened at a time when we are in the process of preparing the 2025 budget, so I am sure the Minister will be able to make provisions to bridge the gap. This should bring us to the larger conversation about aid. We know that aid to our country has been dwindling over the years,” he stated.

He cited examples such as the Danish International Development Agency (DANIDA) ceasing its financial support to Ghana and the United Kingdom reducing its aid budget from 0.75% of its Gross National Product (GNP) to 0.5%.

“This should tell us that aid to our country will eventually dwindle to zero. The only difference between DANIDA and other donor funding compared to USAID is that the USAID withdrawal announcement came suddenly. But we have seen the trend, and it is important that we begin to plan our lives without aid and see what we can do for ourselves,” he told Parliament’s Appointment Committee.

Mr Ampem stressed that achieving economic self-reliance would require strengthening domestic revenue mobilization, expanding the tax base, and improving public spending efficiency.

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He said some shipping companies had raised concerns about Act 1122 of 2024, stating that the law positioned the GSA as both a regulator and an asset manager, leading to bureaucratic challenges that increased the cost of doing business at the ports.

The Minister gave the assurance on Monday when he paid his first official visit to the GSA in Accra, to familiarise with their operations, listen to their concerns and share his vision with them.

He mentioned President John Mahama’s pledge during the electioneering period to reduce the cost of doing business at Ghana’s ports by revising existing laws.

Addressing these concerns, he said, could persuade shipping lines to reconsider their decisions to exit Ghana and pledged to work closely with the Authority to streamline operations and eliminate bureaucratic hurdles that deter business.

“The threat of shipping lines relocating is real. We must act ahead of time to create an environment that encourages them to stay. My presence here today is to listen to your concerns and assure you of our commitment to working together to protect the interests of shippers and shipowners,” he said.

The Minister said with over 80 per cent of global trade being done by sea, Ghana must create a business-friendly environment to attract and retain international trade partners.

He assured the GSA that the Ministry would support the implementation of the revised Act 1122 of 2024, which strengthens the Authority’s regulatory role.

He added that the government remained committed to fulfilling its promise of reducing the cost of doing business at Ghana’s ports by reviewing taxes, duties, and levies to create a more competitive shipping environment.

The Minister called for enhanced collaboration between the GSA and the Ministry to ensure Ghana’s ports remained attractive to business.

He stressed the importance of addressing inefficiencies and implementing policies that aligned with the government’s “24-hour economy” agenda.

He urged the GSA’s management and staff to support the newly appointed Chief Executive Officer (CEO) and work collectively to transform Ghana’s shipping industry into a hub for trade in the sub-region.

“Next time we visit you, the story of people trying or thinking to leave our seaports will not come up. Instead, we should be talking about new investments and increased trade activity in Ghana,” he said.

Professor Ransford Gyampo, CEO of the GSA, welcomed the Minister’s visit, stating that it was long-awaited and reassuring.

He mentioned the Authority’s role in protecting the interests of shippers and outlined the historical background of the GSA, which was established in 1974 to counter unfair pricing practices by liner conferences.

Prof. Gyampo said the 2024 revision of the GSA Act expanded its role to regulate commercial activities of shippers and shipping service providers in the shipment, storage and delivery of international trade cargo by sea, air and land.

However, he noted that some shipping lines had expressed concerns over the Authority’s regulatory oversight, particularly in approving charges.

The CEO further revealed that some shipping lines owed the GSA outstanding fees, an issue that had been raised at the Public Accounts Committee.

He assured the Minister that under the government’s “Reset Ghana Agenda,” the GSA would effectively regulate commercial shipping activities to ensure fair pricing and efficiency.

Prof. Gyampo reiterated the GSA’s commitment to working with the Ministry to enhance Ghana’s competitiveness in the global shipping industry and to retain shipping lines in the country.

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The meeting, held at the Ministry of Energy on Monday, February 24, focused on finding long-term solutions to stabilise the country’s power supply.

During the discussions, the Energy Minister engaged representatives from IPPs, the Electricity Company of Ghana (ECG), the Ghana Grid Company (GRIDCo), and other power generation companies to assess the sector’s current challenges.

Key topics included fuel supply constraints, the financial sustainability of power producers, and infrastructure maintenance.

Stakeholders also explored strategies to improve efficiency and prevent prolonged outages.

Mr Jinapor reaffirmed the government’s commitment to collaborating with industry players to resolve the crisis, stressing the importance of joint efforts in enhancing power generation and distribution.

“Ensuring a stable and reliable power supply remains a priority, and we will continue to engage all relevant stakeholders to address the challenges affecting the sector,” he stated.

The meeting concluded with an agreement to implement immediate measures to mitigate power disruptions while working on long-term reforms.

The minister assured the public that regular updates would be provided as efforts to resolve the power supply challenges progress.

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He described it as “one of the most egregious acts of economic injustice perpetrated by the state.”

He said this during the launch of The UT Story: Volume 3, authored by Prince Kofi Amoabeng, the founder of the defunct UT Bank.

Sir Sam Jonah expressed his dismay over the government’s decision to close the bank six years ago.

He argued that the move has had far-reaching consequences, discouraging ambitious entrepreneurs and sending a chilling message about the fragility of private enterprises in Ghana.

Sir Sam Jonah lamented that UT Bank’s collapse was not merely a financial event but a symbolic setback for Ghanaian entrepreneurship.

He stressed that it illustrated the harsh reality that no matter how diligent or rule-abiding a business may be, political interference can swiftly undo years of hard work and success.

“It was not only a collapse of a bank, it was a blow to the very idea that Ghanaians could build something of their own and succeed at the highest level.

“It sent a chilled message to entrepreneurs and innovators that no matter how hard you try, no matter how well you play by the rules, your success can easily be undone by those in power,” he stated.

Sir Sam Jonah used the occasion to advocate for a stable and predictable business environment, urging policymakers to shield businesses from undue political interference.

He warned that excessive state involvement in the private sector erodes investor confidence and hampers economic growth.

“The seizure of his bank was one of the most egregious acts of economic injustice perpetrated by the state; a move driven by malice, deceit, envy, and jealousy,” he bemoaned.

He cautioned that Ghana’s economic progress hinges on leaders supporting and nurturing private enterprises rather than allowing political agendas to dictate the fate of thriving businesses.

However, he emphasized that “this review should be done gradually” to prevent economic disruptions.

Dr. Asiama acknowledged the impact of the CRR on commercial banks, stating, “We recognize the impact of the Cash Reserve Ratio for commercial banks and intend to review it critically.”

He assured that “any adjustments must be phased to avoid unintended economic consequences.” His comments came in response to an appeal from the Governing Council of the Ghana Association of Banks (GAB) during a meeting to discuss industry challenges.

The meeting, requested by GAB members, aimed to foster an open dialogue between banks and the regulator to build trust and consensus on key financial policies.

Background on Cash Reserve Ratio Adjustment

In March 2023, the Bank of Ghana announced a reversal of the cash reserve ratio on local currency deposits for banks, increasing it from 12% to 14%. This measure was part of efforts to mop up excess liquidity in the market.

During the meeting, commercial banks appealed to the central bank to review the CRR, arguing that it was limiting financial intermediation and increasing banking costs.

The discussion also covered Ghana’s credit rating challenges and their impact on correspondent banking relationships. GAB members called for an upward revision of Nostro and affiliate exposure limits to ease constraints on international transactions.

In response, Dr. Asiama acknowledged the practical difficulties banks face in securing new correspondent banking relationships and committed to further assessing the situation.

Regulation of Foreign Exchange and Money Transfer Operators

The Governing Council of the Ghana Association of Banks urged the Bank of Ghana to end the mandatory sale of foreign exchange proceeds from mining and oil companies to the central bank.

They argued that allowing these proceeds to flow through the banking system would improve foreign exchange price discovery. Dr. Asiama assured them of his commitment to further engagement on this request.

Additionally, the Governor stated that the Bank of Ghana is working to review the operations of Money Transfer Operators (MTOs) and urged commercial banks to cooperate in streamlining the sector for greater transparency.

He highlighted the growing influence of MTOs and fintech companies in the remittance business and addressed concerns about regulatory gaps that could lead to foreign exchange losses for the country.

Special Dispensation for Commercial Banks and Agricultural Financing

Dr. Asiama also revealed that the central bank is committed to extending the special dispensation granted to commercial banks during the Domestic Debt Exchange Programme (DDEP).

This response came after banks raised concerns over the expiration of the special dispensation on restructured cocoa bonds under the DDEP, which is set to end in April 2025. Banks expressed fears that market illiquidity and COCOBOD’s financial position might make it difficult to sell these bonds.

On the issue of rising non-performing loans, Dr. Asiama emphasized the role of fiscal policy in reducing inflation and interest rates.

He reaffirmed the Bank of Ghana’s commitment to doubling agricultural financing and supporting the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) in raising additional guarantee funds.

However, he also urged commercial banks to take the lead in stakeholder engagements to improve and de-risk selected agricultural value chains.

The initiative, which covered 120 public sector institutions in four regions, aimed to reduce the public sector wage bill and enhance transparency in public sector employment.

Speaking on The Pulse Show on JoyNews, the commission’s chief executive officer, Benjamin Arthur, revealed that GH₵345 million was saved last year through diligent monitoring efforts.

“Last year, we made a lot of savings—345 million cedis from the monitoring exercise,” he said.

Beyond financial savings, the CEO emphasized that the exercise played a crucial role in improving productivity.

“But it has other benefits on improving productivity. We go out to collect comprehensive information, conduct field monitoring, and also review payrolls,” he explained.

He added, “About 8% of what we pay in the public sector can be saved, and when we started payroll monitoring, the analysis showed that for 2023 and 2024.”

Arthur also highlighted key lessons from the monitoring process.

“Going forward, the payroll monitoring has taught us a lot. Of course, we also saw some anomalies—some people entitled to allowances were not receiving them,” he stated.

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He argued that the government’s decision to shut down the bank six years ago has had far-reaching consequences, discouraging ambitious entrepreneurs from pursuing transformative ventures.

Speaking at the launch of ‘The UT Story: Volume 3’ by Prince Kofi Amoabeng, Sir Sam Jonah underscored the critical need to protect businesses from undue political interference.

He emphasised that a stable and predictable business environment is essential for long-term economic prosperity, warning that excessive state control undermines investor confidence and stifles entrepreneurial ambition.

Reflecting on the closure of UT Bank, he described it as a painful chapter in Mr Amoabeng’s journey, highlighting the betrayal and harsh realities that come with power and politics.

“The seizure of his bank was one of the most egregious acts of economic injustice perpetrated by the state; a move driven by malice, deceit, envy, and jealousy,” he lamented.

Sir Sam Jonah further noted that the bank’s collapse was not just a financial failure but a symbolic setback for Ghanaian entrepreneurship.

He stressed that it sent a chilling message to business owners and innovators—that no matter how diligent, rule-abiding, and hardworking they may be, their success could be undone at any moment by those in authority.

He urged policymakers to learn from such events and prioritise the creation of a business-friendly environment that fosters growth rather than suppressing ambition.

According to him, Ghana’s economic progress depends on the ability of its leaders to nurture and support the private sector rather than allowing political agendas to dictate the fate of thriving businesses.

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The company, which operates the 569-kilometre pipeline from Nigeria through Tema to Takoradi, temporarily shut down gas transmission on February 5, 2025, to facilitate maintenance activities, including pipeline cleaning and inspections.

Speaking at a press conference at WAPCo’s Regulating and Metering Station in Tema, Operations and Maintenance Superintendent (West), Benoni Owusu Ayeh, explained that the shutdown was necessary to launch the Pipeline Inspection Gauge (PIG) into the system for cleaning and regulatory inspections.

“WAPCo is required by regulations to conduct pigging every five years to maintain the integrity of the pipeline. So far, three PIGs have been successfully launched from Tema to Takoradi, with the fourth expected to be received in the early hours of Saturday,” he stated.

He further noted that once the fourth PIG is received, the final “intelligent PIG” will be deployed to collect critical data on the interior condition of the pipeline.

Gas Supply Continues Despite Maintenance

Dr. Isaac Adjei Doku, WAPCo’s General Manager for Corporate Affairs, dismissed reports suggesting that Ghana was not receiving gas from Nigeria due to the maintenance.

“Some gas is still coming through since the pigging process requires gas to travel through the pipeline. The gas used for pigging is being delivered at Takoradi and is currently supporting power generation by the Volta River Authority (VRA),” he clarified.

He also revealed that the maintenance period is being used to replace two subsea valves at Tema and Cotonou. “The replacement vessel got into position on Monday, 18 kilometers offshore from the Tema Regulating and Metering Station, and by Wednesday, lateral depressurisation was done to commence the valve replacement, which is ongoing,” he said.

WAPCo Appeals For Public Support

Managing Director of WAPCo, Michelle Burkett, appealed to the media to help inform the public about the importance of the maintenance works in ensuring the long-term integrity of the pipeline.

She assured that WAPCo would continue to engage the media to ensure proper dissemination of information regarding such maintenance activities.

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The president of the association, Samuel Avaala, attributed the decline to the lack of support for the sector and the influx of cheap oil from other countries.

Speaking to Joy Business, he made a passionate call for the local oil palm industry to be protected.

Mr. Avaala urged the government to step up efforts against the illegal intrusion of foreign oil products, which are affecting local producers.

“We want to develop it ourselves, and it is in a state where we are not going to be competitive compared to our neighbors. Let’s play it safe. It’s around 50%. But in recent times, what has happened is that it is probably crossing the 50% mark, leaving the local side to take less than 50%,” he said.

The association said the palm oil production gap in Ghana requires significant investment in expanding local production capacities.

Mr. Avaala stressed the need for strong policies, relative exchange rate stability, and effective liquidity sterilization, indicating that a more stable macroeconomic environment could support further growth in the palm oil sector.

The palm oil production deficit

Ghana consumes approximately 450,000 metric tons of palm oil annually, predominantly used in products like vegetable cooking oil. However, the country’s local production only meets about 300,000 metric tons of this demand, leaving a substantial gap of 150,000 metric tons that must be imported.

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his remarks follow the government’s announcement of the wage hike, which came after successful negotiations between the Labour Union and President John Dramani Mahama, who personally engaged union leaders to secure their backing for the adjustment.

this marks the second pay rise in less than a year, following a 23% increase in 2024 aimed at easing the burden of the rising cost of living.

speaking to Citi News, Mr Gamey stressed that salary increments should ideally be linked to productivity, a system Ghana has yet to fully implement.

“the issue is base pay—it should normally be based on productivity, but we are yet to get there as a nation. we are not fully practicing the performance management system in Ghana,” he noted.

according to him, the private sector responds better to such mechanisms than the public sector.

although he acknowledged that the 10% increase is fair under the circumstances, he would have preferred a different approach.

“i would have preferred it lower. even a 1% adjustment in public sector wages pushes the economy into a higher inflationary bracket, which ultimately affects all of us, including the beneficiaries,” he warned.

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Speaking at the recent Downstream Petroleum Dialogue organized by COMAC, Mr. Kumi stressed that while the chamber supports an effective tax collection system, it will not tolerate disruptions such as system failures that negatively impact business operations.

“We don’t have any problem if the system is making tax collection efficient…we support all that. But at the end of the day, we expect our members to have a trouble-free experience, with no bottlenecks in placing orders,” he stated.

ICUMS is a customs management and port community platform designed to process documents and payments through a single window, replacing multiple vendors with a single service provider.

Mr. Kumi cautioned that persistent technical challenges could lead to frustration among industry players.

“The system should not be implemented in a way that negatively affects our operations. That’s all we are saying. We are calling on the GRA and the Ghana Ports and Harbours Authority to resolve any bottlenecks permanently. We have tolerated these hiccups for the past year, but going forward, we may not have the patience to continue tolerating them,” he warned.

In 2020, the GRA announced that all transactions related to import and export manifests must be processed through either ICUMS or the Ghana Customs Management System at the Port of Tema and all other entry points.

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The cedi began the year on a relatively stable note, but just six weeks in, it has experienced a concerning rate of decline.

Bank of Ghana data shows that the cedi depreciated from GH₵14.5 per dollar at the beginning of January to GH₵15.55 per dollar currently, with even higher rates recorded at forex bureaus.

This 6.5% depreciation in the first six weeks of the year has raised concerns, with analysts predicting that if the trend continues, the cedi could depreciate by over 50% against the US dollar by the end of 2025.

The government has been urged to take immediate measures to curb the rapid depreciation before it worsens.

Meanwhile, despite a 5.65% drop in global crude oil prices, the cedi’s depreciation has led to a rise in fuel prices in Ghana.

A recent press release by the Institute for Energy Security (IES) revealed that in the first pricing window of February 2025, fuel prices in Ghana surged for the third time this year.

Gasoil prices rose by GH₵0.45 per litre, while gasoline increased by GH₵0.24 per litre.

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He warned that rushing the process could destabilize the sector and erode confidence in the broader economy.

The push to restore licenses for some collapsed banks has gained momentum following the appointment of Dr. Johnson Asiama as the new Governor of the Bank of Ghana.

GN Bank’s founder, Dr. Papa Kwesi Nduom, has repeatedly maintained that his bank’s closure was unjust, while Seidu Agongo, the majority shareholder of the defunct Heritage Bank, has also expressed similar concerns.

However, former BoG Governor Dr. Ernest Addison, before his early retirement, firmly opposed reinstating the revoked licenses.

With foreign entities now controlling two-thirds of Ghana’s 23 commercial banks, concerns over local ownership in the sector are growing.

Despite these concerns, financial analyst Professor Peter Quartey has cautioned against making hasty decisions, emphasizing the need for a thorough, independent review before any action is taken.

“I think we should tread cautiously. You don’t want to set such a precedent where the Central Bank takes a decision and then it is reversed. If anybody has issues with that decision, that person can challenge it in court,” he said.

He further added, “We have listened to one side, which calls for further investigation. Let us not be in a haste to reinstate people who perhaps have caused financial loss to the state.”

Speaking at the Downstream Dialogue 2025 organized by the Chamber of Oil Marketing Companies (COMAC) in Accra, NPA Chief Executive Godwin Kudzo Tameklo stated that the initial phase may include deploying automated dispensers at selected retail outlets and ensuring continuous operations at bulk storage facilities and depots.

He emphasized that the initiative aligns with President John Mahama’s vision of a 24-hour economy to drive economic growth and job creation.

“Since assuming office, I have stressed the importance of affordability, quality, and reliability in petroleum product supply. Our goal is to ensure fair pricing and strict adherence to industry standards while implementing 24-hour economy solutions,” he said.

Mr. Tameklo called for strong collaboration among industry players, government agencies, and international partners to transform the sector.

“We must reaffirm our commitment to excellence, transparency, and innovation. Together, we can address challenges and seize opportunities to make Ghana’s petroleum downstream industry a key contributor to national prosperity,” he added.

Reflecting on the NPA’s 20-year journey, he noted significant progress in pricing regulations, supply chain management, and infrastructure development. However, challenges such as illegal imports, credit opacity, distribution inefficiencies, and infrastructure surplus remain.

He also highlighted the need for the sector to adapt to global climate change mitigation efforts and the risk of fossil fuel asset stranding.

“The industry must strike a balance between ensuring energy security—availability, accessibility, and affordability—while aligning with the global energy transition,” he added.

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According to the report, domestically owned banks accounted for 48.5% of the total value of secured loans, up from 25.4% in Q4 2023.

Conversely, the percentage share of secured loans granted by foreign-owned banks in Ghana declined to 51.5% in Q4 2024 from 74.6% in Q4 2023.

“The share of the value of secured loans granted by domestically owned banks increased to 48.5% in Q4 2024 from 25.4% in Q4 2023,” the report highlighted.

Banks Record Lowest Average Lending Rate of 28.6%

The report also showed that the average lending rate for secured loans by banks stood at 28.6% in Q4 2024, the lowest across all lending institutions. This represented a slight reduction from 28.8% in Q4 2023.

Finance and leasing companies recorded an average lending rate of 33.1% in Q4 2024, down from 27.4% in Q4 2023. Rural and community banks posted an average lending rate of 33.5% in Q4 2024, a marginal decrease from 34.4% in Q4 2023. However, microcredit companies saw a slight increase in their lending rate to 49.5% in Q4 2024 from 47.7% in the same period of 2023.

Sectoral Distribution of Secured Loans

The Commerce and Finance sector remained the highest recipient of secured loans in Q4 2024, receiving 44.1% of the total value, up from 43.3% in Q4 2023. This was followed by the Construction sector with a share of 19.2% and the Services sector with 15.9%.

The Manufacturing sector accounted for 4.8% of the total secured loans, while the Information & Communications and Mining & Quarrying sectors received 3.9% and 2.9%, respectively.

The distribution of secured loans across other sectors was as follows:

• Agriculture, Forestry, and Fishing: 2.2%
• Electricity, Gas, and Water: 1.2%
• Cottage Industries: 0.2%
• Transport and Haulage: 0.9%
• Others: 4.8%

The BoG report indicates a notable shift in the lending landscape, with domestic banks playing a more dominant role in secured loan disbursement while foreign banks reduced their share.

Sectoral Distribution of Secured Loans

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The move aims to ensure a stable and sufficient fuel supply to meet the growing demand for petroleum products.

Speaking at the first Downstream Dialogue organized by the Chamber of Oil Marketing Companies, Mr. Jinapor emphasized the need for innovative strategies to strengthen the sector.

He assured that the committee would review key policies and prescribe roadmaps to address challenges related to pricing and regulation.

“It is therefore imperative that we look at innovative reforms that will enhance overall sector performance and lead to sustained fuel supply at affordable and more stable prices to the people of Ghana, while contributing immensely to economic resilience and growth,” he stated.

Mr. Jinapor further explained that forming such committees would facilitate extensive engagements and collaboration among stakeholders.

“The government, through the Ministry of Energy, is committed to extensive consultation and collaboration with its sector agencies and petroleum service providers to improve service delivery in the petroleum downstream sector,” he said.

The consultations, he noted, will explore key interventions, including the promulgation of a downstream law, a review of margins, taxes, and levies in the Price Build-Up (PBU) of petroleum products, and the diversification of petroleum supply sources.

He added that discussions will also focus on implementing a cost-reflective tariff framework, developing a low-carbon fuel market scheme, and modernizing the state-owned refinery through strategic partnerships.

Speaking at the same event, Acting Chief Executive of the National Petroleum Authority (NPA), Godwin Eduzdi Tamakloe, revealed plans to introduce automated fuel dispensing machines at selected fuel outlets as part of the government’s 24-hour economy policy.

The dialogue, themed “Ghana’s Downstream Oil and Gas Sector: Challenges and Opportunities,” aimed to highlight challenges faced by industry players and explore solutions.

This will cover GH¢7.24 billion in maturing bills.

However, the recent rejection of bids by the Treasury indicates that the government would not take all the bids that would be tendered.

This would compress excessive yields that have taken a nose dive for the last three weeks.

In a striking display of fiscal restraint, the Treasury rejected GH¢8.27 billion bids last week, marking its largest rejection since March 2023.

It accepted only GH¢9.43 billion from a total offer of GH¢17.70 billion, covering a target of GH¢8.07 billion and maturities worth GH¢7.54 billion.

This bold move led to yields on the 91, 182, and 364- day bills plummeting by 112 basis points, 88 basis points, and 130 basis points, to settle at 26.86%, 27.81%, and 29.07% respectively.

Analysts expect investors to reassess their yield expectations as the Treasury reinforces market discipline by rejecting high-yield bids and curbing excessive rate demands to contain borrowing costs.

This strategy to further is expected to drive yields further down.

According to the third review of Ghana’s IMF program in December 2024, the government plans to resume bond issuances in the second quarter of 2025 (April–June).

However, with a new administration now in place, the timeline remains uncertain.

The government’s strategy includes issuing a two-year bond alongside releasing a revised medium-term debt management strategy and an annual borrowing plan.

These measures aim to reassure investors of a prudent and transparent debt approach—a critical step in rebuilding market confidence following last year’s restructuring.

Investor Sentiment: Cautious Optimism

Investor appetite for longer-term instruments remains uncertain. Since the domestic debt exchange, many investors have shifted to the treasury bill market, attracted by higher yields.

However, the government’s recent stance on borrowing costs has created tension.

At the most recent auction on February 14, 2025, the government rejected GHS 8.2 billion in bids, signaling a reluctance to accept elevated rates.

This move, while aiming to control borrowing costs, has left excess liquidity in the market—potentially creating room for a successful bond issuance if terms are attractive enough.

Still, investors remain watchful. The success of the planned bond issuance will likely depend on whether the new administration can strike a balance between fiscal discipline and meeting its spending commitments.

Navigating Fiscal Constraints

The decision to return to the bond market comes amid tight fiscal conditions. As part of its external debt restructuring agreement, Ghana has committed to capping new external borrowing at $250 million for 2025.

With international capital markets effectively closed to the government and rising domestic interest rates, reliance on the local bond market is becoming increasingly crucial.

At the same time, the expenditure plans outlined in the NDC’s manifesto—if implemented—could add further pressure to public finances.

This raises questions about the government’s ability to sustain a balanced borrowing strategy while meeting its policy goals.

The government’s return to the domestic bond market reflects a delicate balancing act. While treasury bills have provided short-term liquidity, longer-term bonds signal a commitment to sustainable financing.

However, investor confidence hinges on the credibility of the forthcoming debt management strategy and the government’s ability to maintain fiscal discipline.

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His remarks come after President John Dramani Mahama’s call for African nations to become more self-reliant following the withdrawal of funding support from the United States Agency for International Development (USAID).

Speaking at the Munich Security Conference (MSC) in Germany on Friday, February 14, President Mahama highlighted the need for African countries to reduce their dependency on foreign aid.

In response, Dr. Atuahene, speaking on Adom FM’s Burning Issues, argued that self-reliance remains an unattainable goal for Ghana due to the country’s inability to manage its resources effectively.

“It’s not positive at all. Let me tell you something about our gold mining—only 15% of the gold we mine goes to the Bank of Ghana. Are we normal, or are we sick in the head? We are failing to leverage our own resources,” he lamented.

“We should bow down in shame and ask God for forgiveness because we have mismanaged what He has given us,” he added.

Dr. Atuahene also warned that Ghana is set to face severe economic hardships in 2025 due to its growing debt burden.

“This year doesn’t look good; it will be one of the most difficult years in Ghana’s history,” he predicted.

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The borrowing cap is now a structural benchmark under the International Monetary Fund (IMF) programme, allowing the Fund to monitor and assess Ghana’s compliance annually. The MOU, signed by all participating creditor countries, paves the way for bilateral agreements to enforce the $250 million disbursement limit.

The limit is part of Ghana’s broader debt restructuring efforts following its 2022 suspension of external debt servicing. It also coincides with the country’s ongoing Eurobond restructuring, where the government is swapping $13.1 billion in outstanding Eurobonds for new notes.

With the borrowing ceiling in place, the Ministry of Finance is working with bilateral creditors to prioritise funding for ongoing projects. Government agencies have been instructed to exclude externally funded capital expenditure (CAPEX) from their 2025 budgets until the Ministry finalises its project priority list.

The cap poses a challenge for the new National Democratic Congress (NDC) administration, which campaigned on ambitious infrastructure promises while managing substantial restructured debt obligations. With Ghana’s local bond market still recovering from the domestic debt exchange, treasury bills remain the government’s main financing option—but elevated interest rates continue to weigh on public finances.

Speaking to Bloomberg at the Munich Security Conference in February 2025, President John Mahama intimated that his government does not plan to extend the IMF program beyond its scheduled conclusion in May 2026. An extension would further limit public spending, making it harder to deliver on flagship projects.

Meanwhile, Ghana continues to engage commercial creditors, including Eurobond holders, to finalize restructuring deals aligned with the comparability of treatment principle—ensuring all creditors share the burden of providing debt relief.

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• NPA introduces new price floor for petroleum products
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This directive mandates Oil Marketing Companies (OMCs) and LPG Marketing Companies (LPGMCs) to adhere strictly to the minimum pricing structure.

The new prices set the floor at GH₵12.56 per litre for petrol, GH₵13.45 per litre for diesel, and GH₵14.26 per kilogram for LPG. Companies that fail to comply with these minimum prices will face potential regulatory sanctions.

This move is in line with the Petroleum Pricing Guidelines and aims to maintain stability in the downstream sector.

However, the new price floors do not consider premiums charged by International Oil Trading Companies (IOTCs), the operating margins of Bulk Import, Distribution, and Export Companies (BIDECs), or the marketing and dealer margins of OMCs and LPGMCs.

These cost components will continue to be independently determined under Ghana’s price deregulation policy.

By enforcing this price floor, the NPA seeks to prevent price undercutting among industry players, which could destabilize the market.

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Speaking on Joy News’ PM Express on Monday, February 17, Dr. Adu Anane Antwi, Convener of the Pensioner Bondholders Forum, affirmed that forum members welcome the adherence to the agreed payment schedule.

Dr. Antwi, the former Director-General of the Securities and Exchange Commission (SEC), explained that the settlement dates for payments follow a six-month cycle.

“A settlement day was February 17, meaning six months down the line, the affairs agreement was due, and that has now been settled. For those who didn’t tender their bonds, small amounts were paid weekly, but for those who did, every single one was due for payment at the six-month mark,” he explained.

The February 2025 payment represents the fourth instalment in the cycle since the agreement was established. Dr. Antwi recalled that the previous payments were made in August 2023, February 2024, and August 2024, with the fourth one now completed in February 2025.

“Under the previous government, payments were made accordingly. For this new government, this is their first payment, and we expect the same level of consistency,” he stated.

Dr. Antwi also addressed concerns among pensioners about the political transition and its potential effect on the bond payments.

“Yes, many of our members were worried, wondering what the transition meant for the commitment to our payments. But I have assured them that this is a contract. Governments come and go, but contracts remain. The government must honour its obligations to maintain investor confidence,” he stressed.

He acknowledged that prior delays had led to pensioners’ protests, but now that payments have resumed, he expressed optimism for the future.

“That’s why we picketed,” he admitted. “But now that payments have resumed, we can see a pathway forward.”

Regarding the memorandum between the government and pensioner bondholders, Dr. Antwi confirmed that the agreed structure is being followed, with coupon payments being made every six months.

“Coupons are paid every six months. Once the settlement date was determined, the schedule was set – August, February, August, February. This is now the fourth six-month payment, meaning things are on track.”

Despite the positive developments, Dr. Antwi urged the government to maintain consistency to rebuild full investor confidence.

“When a government faces financial difficulties, the only way to rebuild trust is by doing things right. That means ensuring payments are made on time, both for coupons and when the principal becomes due,” he remarked.

He also highlighted that individual bondholders who did not tender their bonds have already received maturity payments, while those who did will have to wait.

“For those who tendered their bonds, the first maturity won’t come until four years down the line. In two years, 50% of individual bondholders’ bonds will be due for payment. The government must ensure that when that time comes, payments are honoured without fail.”

Dr. Antwi concluded by underscoring the importance of credibility in financial markets.

“Regular payments now will assure people that when the principal becomes due, it will be honoured. That’s what brings confidence. If the government wants to return to the market and issue more bonds, it must maintain its credibility by ensuring consistent payments.”

Sources close to the appointment confirmed that Dr. Zakariah, who officially began her duties on Monday, February 17, 2025, took over from Michael Andoh, who has been acting as Commissioner since 2020.

About Dr. Zakariah

Dr. Zakariah brings over 20 years of experience in the insurance industry. She is also the founder and Managing Director of Strategist Consortium, a management consulting firm.

Previously, Dr. Zakariah served as the Group Chief Operating Officer of WAICA Reinsurance Corporation before resigning in 2024. WAICA is owned by members of the West African Insurance Companies Association and operates globally.

She is a Chartered Insurer and a Fellow of the Chartered Insurance Institute of the United Kingdom, as well as the Institute of Risk Management Professionals of Ghana.

Dr. Zakariah holds a BSc Hons. degree and an MBA from the University of Ghana, Legon, and earned her PhD in Management Studies from the Swiss Management Centre.

She began her career at SIC (State Insurance Corporation).

Challenges and Focus

Dr. Zakariah’s immediate challenge will be addressing the ongoing insurance penetration issues within the industry. Industry observers expect her to implement new policy measures and offer incentives to insurance companies to overcome these challenges.

Recently, some market players have been advocating for another review of the minimum capital requirement for insurance companies.

Dr. Amin, who is also the Karaga MP, dismissed claims that the decision to honour the fourth coupon payment to bondholders was solely due to a directive from President John Mahama. In a Facebook post on Monday, February 17, 2025, he clarified that the NPP government had already committed resources to meet these obligations before the current administration took office.

“The NDC Government has announced that the President has directed the Minister for Finance to honour coupon payments to DDEP bondholders,” Dr. Amin wrote, referring to President Mahama’s directive.

He further explained that the NPP government had honoured three previous payments between August 2023 and December 2024. These payments, both in Payment-In-Cash (PIC) and Payment-In-Kind (PIK), amounted to a total of GH₵17.25 billion in PIC and GH₵9.77 billion in PIK.

Additionally, individual bondholders who did not tender their bonds were paid GH₵515.17 million in accordance with a memorandum of understanding between the government and the Coalition of Individual Bondholders.

Dr. Amin highlighted that under the previous NPP government, there had been no defaults in coupon payments since the domestic debt restructuring, with reserves built in the Debt Reserves Accounts to support upcoming obligations, including the fourth coupon payment.

He provided a detailed breakdown of the payments made under the NPP government:

1. 1st Payment (August 2023): Total of GH₵8.55 billion (PIC: GH₵5.42 billion, PIK: GH₵3.13 billion)
2. 2nd Payment (February 2024): Total of GH₵9.11 billion (PIC: GH₵5.85 billion, PIK: GH₵3.27 billion)
3. 3rd Payment (August 2024): Total of GH₵9.35 billion (PIC: GH₵5.98 billion, PIK: GH₵3.38 billion)

According to Dr. Amin, these consistent payments demonstrate that the NPP government laid a strong foundation for the continuation of the DDEP, making it inaccurate to attribute the fourth payment solely to President Mahama’s directive. He emphasised that the buffers built were the result of careful planning, and it was misleading to suggest the payment was only possible due to the current administration’s intervention.

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In a lawsuit filed at the High Court in Accra on January 22, 2025, she accuses NIB officials of manipulating account balances belonging to her late husband, COP Stephen Andoh-Kwofie.

COP Stephen Andoh-Kwofie died over nine years ago.

As the administrator of his estate, Faustina Andoh-Kwofie claims he had informed her about significant deposits in various accounts associated with him and his company, ANEBONA.

Upon requesting statements for specific accounts, including 5012002254901-USD-ANEBONA and 5012002254902-GBP-ANEBONA, she claims she found substantial discrepancies, revealing balances much lower than anticipated.

Despite multiple requests for a detailed transaction breakdown, she states in her writ that NIB has not complied.

She is therefore seeking a court order compelling NIB to provide complete and accurate account statements from December 1, 2014, to the present date, along with general damages and legal costs.

NIB reaction

Graphic Online has reported that the bank has acknowledged receipt of the suit.

It said the legal outfit of the bank was handling it and would respond to the writ.

The Head of Customer Service of NIB, Mary Owusu-Brefo, said the bank had received the writ of summons and the legal team is preparing to respond to it accordingly as the law demands.

The late Stephen Andoh-Kwofie passed away in 2015 as a Commissioner of Police.

He was commissioned into the Officer Corps of the Ghana Police Service as Deputy Superintendent of Police on April 1, 1991, and rose through the ranks.

He served in several capacities at various stations across the country and on international assignments.

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President John Dramani Mahama has reiterated that his administration has no immediate plans to extend Ghana’s ongoing $3 billion Extended Credit Facility agreement with the IMF.

Speaking in an interview with Bloomberg TV at the Munich Security Conference, he stressed that his government remains committed to executing the existing programme without seeking an extension.

Addressing the possibility of future modifications, President Mahama acknowledged that an extension could be considered if necessary but insisted that the current focus was on implementing the agreed measures.

Speaking on Joy FM’s Super Morning Show during a discussion on the economy, Prof Godfred Bopkin said, “To think about it that we are exiting the programme in May 2026 conveys considerable risk to the market,” he noted.

Prof Bopkin highlighted that the original financial programme, which aimed to restore economic balance, was designed with a follow-up extension or successor plan in mind. However, given the changing circumstances, he acknowledged that the nation now finds itself needing to adjust the course.

“What that will mean is that we have to then start another programme. If you look at the original programme, the programme was designed with an extension or immediate or a successor right after,” he explained

Prof Bopkin further estimated that it could take between three and four years before the country can access the international capital markets again. This delay, he noted, is a necessary period of rebuilding and stabilizing the economy.

“Remember that we are not able to go to the international capital market per the original programme until 2027,” he added.

The government had previously restructured its debt to avoid default, but the lengthy and complex process of recovery means that the nation will need time to rebuild its financial standing.

“The World Bank was advising us…that’s just consistent with the period,” Prof Bokpin added.

“Once you restructure your debt with the manner that ours took, we are looking at over 3-4 years before the market will receive you favourably,” he concluded.

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Speaking as the Champion of African Union Financial Institutions at the Heads of State and Government breakfast dialogue at the AU Commission headquarters in Addis Ababa, Mahama emphasized the need to fast-track the creation of an African Central Bank, an African Investment Bank, an African Monetary Fund, and a Pan-African Stock Exchange.

He highlighted the African Central Bank’s critical role in fostering economic cooperation by introducing a common monetary policy and a single African currency.

“By mobilizing resources, facilitating trade, and financing infrastructure projects, these institutions can reduce dependence on external aid and create a self-sustaining economic ecosystem for Africa. The African Central Bank is expected to establish a single African currency, reducing exchange rate risks and enhancing investment flows across the continent,” Mahama stated.

Progress on the African Monetary Institute

President Mahama also revealed advancements in establishing the African Monetary Institute (AMI), which will serve as a precursor to the African Central Bank.

“I am pleased to inform you that the ministers of finance and central bank governors have endorsed the draft statute of the African Monetary Institute (AMI) through the specialized technical committee on finance, monetary affairs, economic planning, and integration. The AMI will conduct essential preparatory work, including technical and legal assessments, while ensuring the implementation of macroeconomic convergence criteria.”

Role of Key Financial Institutions

The African Investment Bank (AIB) is expected to mobilize resources from African and global capital markets to finance investment projects across the continent, driving economic growth and regional integration.

Meanwhile, the African Monetary Fund (AMF) will work to eliminate trade restrictions, enhance monetary integration, and provide financial assistance to AU member states.

“The Fund will prioritize regional macroeconomic objectives in its lending policies while providing financial support to AU member states,” he noted.

Mahama also underscored progress toward establishing a Pan-African Stock Exchange, which aims to integrate capital markets and improve investment flows within Africa.

“The Pan-African Stock Exchange will integrate capital markets, making it easier for businesses to raise capital while enhancing liquidity, promoting intra-African investments, and providing alternative financing mechanisms for governments and the private sector. Progress is being made, with the Commission and the African Securities Exchanges Association working on the Exchange’s linkages project,” he added.

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The government experienced a remarkable oversubscription of more than 117% for its short-term treasury bills, indicating a shift in the country’s financial landscape.

According to the results of the auction, investors submitted a staggering GH¢17.69 billion in bids for the available treasury bills, far surpassing the government’s initial offering.

Despite this overwhelming demand, the government accepted only GH¢9.43 billion, carefully curating the bids to ensure fiscal responsibility.

Among the bills, the 91-day and 364-day bills attracted the highest interest, with each receiving over GH¢6 billion in bids. The 91-day bill alone garnered GH¢6.82 billion, representing 38.53% of the total bids. Of this, the government accepted slightly more than GH¢5.22 billion.

Meanwhile, the 364-day bill, also a popular choice, received bids totaling GH¢6.28 billion, roughly 35.50% of the total.

The government accepted just over GH¢2.75 billion of these bids, signaling a cautious approach to the overwhelming demand. The 182-day bill, though less popular, still saw bids amounting to GH¢4.59 billion, with GH¢1.45 billion accepted.

Despite the booming demand, the government’s careful management of treasury bill subscriptions did not stop there. Interest rates, which had been on a downward trajectory for some time, continued to shift.

The yield on the 91-day bill saw a sharp decline of 113 basis points, dropping to 26.85%. Similarly, the yield on the 182-day bill decreased slightly to 27.80%, compared to 27.98% the previous week. The 364-day bill also saw a drop in its interest rate, now standing at 29.07%.

This downward trend in interest rates, even amidst the oversubscription, reflects an evolving market environment. It suggests that the Bank of Ghana’s strategies may be shifting to align with the broader economic conditions, aiming to maintain a balance between attracting investment and ensuring sustainable economic growth.

As the government continues to manage its debt and financial resources, the recent auction highlights the complexities of Ghana’s financial landscape. With rising investor confidence and shifting economic realities, the demand for treasury bills is likely to remain high in the coming months, setting the stage for continued adjustments in the country’s fiscal policies.

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This is relative to the GH¢5.9 billion recorded in Q4 2023, indicating an increase of 38.9% year-on-year.

Banks accounted for GH¢5.7 billion of the total value of secured loans in Q4 2024, depicting an increase of 26.7% from GH¢4.5 billion recorded in Q4 2023.

On the other hand, the total value of secured loans recorded by SDIs in Q4 2024 amounted to GH¢2.5 billion, an increase of 78.6% from GH¢1.4 billion recorded for the same period in 2023.

Distribution of Secured Loans

Banks registered the largest share of the total value of secured loans in Q4 2024, with 69.5%, relative to 76.3% in Q4 2023.

The share of secured loans by Savings and Loans (S&Ls) increased to 17.4% in Q4 2024 from 13.3% in Q4 2023. This was followed by the Rural and Community Banks (RCBs), with a percentage share of 10.4% in Q4 2024, up from 6.9% in Q4 2023.

Similarly, the share of secured loans by Microfinance Institutions decreased marginally to 1.4% in Q4 2024 from 1.7% in Q4 2023.

The share of the total value of secured loans by Finance Houses decreased marginally to 0.3% from 0.5% in Q4 2023.

The cumulative share of secured loans from the remaining lending institutions decreased marginally to 1.0% in Q4 2024 from 1.2% during the same comparative period in 2023.