Africa needs to deepen its regional integration to see economic Pg 7 benefits, ECA report
MONDAY 20 March 2023 Issue No. 28
A NEW THINKING
Majority Leader wants parliament to check fiscal discipline amid rising debt By Eugene Davis
Majority Leader, Osei Kyei-Mensah-Bonsu, has asked the legislature to step up its oversight role to ensure fiscal discipline is followed by central government in a bid to curb over-borrowing. According to him, all stakeholders including parliament have been negligent in its oversight responsibilities, explaining every government will strive to leave an indelible mark as far as development is concerned, because, that is what the electorate shall remember the government for. However, he added that the country should be equally concerned about the means to that end, stressing that every government has been borrowing to add to the stock of debt. Mr. Kyei-Mensah-Bonsu during the final debate on the State-of-the-Nation Address on Friday, said “Parliament should be the body to ensure that we spend within our means. Parliament does no have a Committee on the economy to do this anal4
CalBank,AMPATH donate to Cape Coast Teaching & Takoradi Hospitals 5
Government pays outstanding coupons to individual bondholders 2
Government has commenced payments of outstanding coupons to individual bondholders who failed to participate in the Domestic Debt Exchange programme.
Standard Bank to re-capitalise Stanbic Bank Stan dard Bank Group Ltd, Africa’s biggest lender by assets, is ready to re-capitalise its Ghana business, Stanbic Bank, after making provisions to cover more than half of its holdings in the nation’s debt. “It may become necessary for us to inject capital in that business and we will, at the appropriate time,” Chief Executive Officer, Sim Tshabalala, said in an interview with Bloomberg. Standard Bank Group Ltd, Africa’s biggest lender by assets, is ready to re-capitalise its Ghana business, Stanbic Bank, after making provisions to cover more than half of its holdings in the nation’s debt. “It may become necessary for us to inject capital in that business and we will, at the appropriate time,”
Chief Executive Officer, Sim Tshabalala, said in an interview with Bloomberg. Banks in Ghana are staring at losses after the government restructured GH¢83 billion ($6.8 billion) of local debt as part of a move to finalise a $3 billion bailout from the International Monetary Fund. Standard Bank on Thursday joined FirstRand Ltd in accounting for the impairment. Ghana has an estimated GH¢576 billion of public debt according to the report. Standard Bank said it had set aside 1.5 billion rand ($81 million) to cover potential losses arising from the West African nation’s loan-restructuring programme. The bank
Gold Fields, AngloGold to create Africa’s Tuesday 14 March 2023 – Investment Times largest gold mine Gold Fields and AngloGold Ashanti (“The Parties”) have agreed the key terms of a proposed joint venture in Ghana between Gold Fields’ Tarkwa and AngloGold Ashanti’s neighbouring Iduapriem mines (the “Proposed Joint Venture”).
said its total holdings of both do- negotiation process, as you can mestic and onshore dollar-denomi- expect, because they have a public nated bonds was about 2.6 billion policy role to play,” the CEO said. rand. The government has “extracted what “We believe that the pain that we they consider to be the appropriate have taken in Ghana is exquisite,” bargain, which while appropriate Mr Tshabalala told Bloomberg. from a policymaker and a governHe added that: “The numbers are ment point of view, it’s been painful very large, but we have a portfolio, for holders of that debt.” and the portfolio is calculated to What others did do that. Notwithstanding the FirstRand said last week it impaired impact of Ghana, our Africa re- 496 million rand to cover potential gion’s business performed very losses. Nedbank Group Ltd., which well.” has an indirect exposure to Ghana According to Mr Tshabalala, the through its 20 per cent holding in government of Ghana has been Ecobank Transnational Inc., estimat“textbook” in their approach to ed its exposure to the country’s sovthe restructuring, extracting the ereign debt at 175 million rand. appropriate bargain from all stake- Despite the challenges, Standard holders. Bank said it remained committed to “They’ve been very tough in the Ghana. It plans to leverage its “for-
IMF bailout may happen in June, Ato Forson predicts
Saudi state-owned oil giant Aramco The Tarkwa Mine is held by Gold Fields Ghana, in which Gold Fields currently owns a 90% share and the Government of Ghana (GoG) holds 10%. The Iduapriem Mine is currently oil 100% owned by AngloGold Saudi giant Aramco has anAshanti. Both mines are located near the town of Tarkwa the $161.1bn (£134bn) for in2022, country’s Region. helped byWestern soaring energy prices
and bigger volumes. The Parties have agreed in princiIt represents a 46.5% rise for ple on the key terms of the Prothe state-owned company, composed Joint Venture. pared with last year.
The Parties have commenced with preliminary, high-level and conenergy spikedwith following structiveprices engagements senior Russia’s full-scale government officials ininvasion Ghana andof Ukraine in February will continue engaging2022. with the America’s made GoG, relevantExxonMobil regulators and other $55.7bn, and Britain’s Shell rekey stakeholders, with a view to implementing the Proposed Joint Venported $39.9bn. ture as soon as practically Aramco also declaredpossible. a divi-
By Eugene Davis
Minority Leader Dr. Ato Forson has ances. I can bet that the best encouraged the President to be time we will get the IMF board more innovative and not rely much approval may be June 2023 or on the International Monetary Fund even September 2023. (IMF) to turn around the ailing econGulf States Institute in Washing- shocking for a company to I will like to entreat the Presithe increase in energy prices omy as a deal with the fund may not of human rights abuses: to get &more innovative and resulting from war of dent happen at the end of Russia’s the month. its involvement in the cult for Aramco not to perform $161bn in a single year through stop putting all our hopes on the aggression against Ukraine.” ! strongly in 2022.” bailout.” the sale of fossil fuel – the single According him, is the the President Saudi to Arabia largest IMFYemen, the murder in largest driver of the climate should have known producer in that the the oil March cartel 2018 of journalist Jamal - crisis”. minority MPs explained that deadline an IMF bailout has Opec for (Organization of the Pe- TheKhashoggi, for jailing dissults were “underpinned by She added: “It is all the more the government has not been beentroleum missed. Exporting Coun- sidents, and for widestronger crude oil prices, shocking because this surplus able to satisfy the financing astries). spreadregarding use ofthe capital surances bailout higher volumes sold and imThe Minority Leader made this was amassed during a global On 16th March 2023, Decathlon strategic and creative marketing But the Gulf kingdom has which punishment. includes the board docuknown during a debate on the State cost-of-living crisis by been condemned for a range Ghana, Kawukudi was abuzz with communications agency,and thataided is ments. products”. of the Nation Address on Friday. excitement as the community of situated in Kanda for the past 11 Aramco’s CEO years. Kanda camepresident out in largeand numbers Amin that “This address was made on the 9th for theNasser 'Love said: Brewed“Given in Kanda' March 2022 and we have just about President Nana Addo Dankwa we anticipate and gas will The goal of the initiative was to health screening oil initiative. 15 working days to end the month Akufo-Addo recently expressed remain essential for the foresee- encourage preventative healthand little to nothing has been done optimism that the government is able future, risks of The event wasthe organized by underReZul- care among the residents of to obtain the needed financial assur- systematically fulfilling the investment inanour industry are Kanda and Emmanuel Eye Clinic tz Advertising, award-winning
ReZultz Advertising sponsors free health screening for Kanda residents
dend of $19.5 billion for the Oc- real – including contributing to 2 4 tober to December quarter of higher energy prices.” To address those challenges, he quarter of this year. said, the company would not Most of that dividend amount only focus on expanding oil, gas
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