The report that businesses which bear the brunt of the local currency have called on the government and the Bank of Ghana (BoG) to act urgently to save the falling Ghana cedi is one of the leading stories in the Ghanaian press on Friday.
The Graphic reports that businesses which bear the brunt of the local currency have called on the government and the Bank of Ghana (BoG) to act urgently to save the falling Ghana cedi.
Companies in manufacturing, commerce and other sectors said the persistent depreciation of the Ghana cedi against major international currencies, especially the US dollar, must be checked immediately because it was slowing their businesses and pushing a lot of cost on the consumer who must pay higher for products whether essential or luxury.
The Ghana Union Traders Association (GUTA) and the Chamber of Automobile Dealership Ghana (CADEG) said the depreciating cedi had pushed the cost of goods and services to rise, making it difficult for businesses to stay afloat.
The Ghana cedi is in a record-breaking weakening cycle, depreciating 14 per cent against the dollar this year, fuelled partly by foreign exchange (forex) supply shortfalls. The local currency, which was trading in January at GH¢11.97 to a dollar on the interbank market and at GH¢12.33 in the retail market, is currently being bought at GH¢13.9000 and sold at GH¢13.9140 to the dollar at the interbank rate as of yesterday.
At some forex bureaux in Accra, the dollar is being bought at GH¢15.00 and sold for GH¢15.30. According to the Bank of Ghana’s (BoG’s) January 2024 Summary of Economic and Financial Data, the cedi started 2024 better than the same time in 2023, when it lost 20.6 per cent to the US currency, and in 2022, the cedi depreciated by 30 per cent against the dollar.
But the Governor of the Bank of Ghana, Dr Ernest Addison, told the Daily Graphic that the central bank was keeping a vigilant eye on the developments on the foreign exchange market.
The newspaper says that the Deputy Managing Director (DMD) of Operations at GCB Bank PLC, Emmanuel Odartey Lamptey, has outlined the bank’s strategic vision aimed at transforming Ghana’s cashew sector through innovative financial solutions and technology.
He said the initiative underscored the bank’s commitment to fortify one of the nation’s pivotal agricultural industries, emphasising a multi-stakeholder engagement approach designed to reduce financing risks and attract substantial banking investment into the sector.
Speaking on behalf of the Managing Director of GCB Bank, Kofi Adomakoh, at the just-ended 3i Africa Summit, Mr Lamptey articulated the bank’s strategic focus on the cashew sector.
He indicated that GCB Bank’s ambition was to generate robust multi-stakeholder engagements, fostering a technology-driven framework to mitigate financing risks across the cashew value chain.
“This initiative is expected to not only attract more bank financing but also to catalyse sustainable growth within the sector,” he stated at a roundtable discussion on de-risking important sectors of Ghana’s economy for growth.
The infusion of technology, Mr Lamptey stated, presented a transformative opportunity for the cashew industry. “From precision agriculture powered by data analytics to smart irrigation systems, blockchain-enabled supply chain management, and market intelligence platforms, technology offers a suite of solutions that can revolutionise operations in the sector”.
“These advancements are poised to enhance productivity, unlock efficiencies and significantly mitigate risks from farm to market,” he pointed out.
The cashew industry is integral to Ghana’s agricultural landscape, presenting significant opportunities for economic growth and prosperity for countless farmers and entrepreneurs.
The Ghanaian Times reports that the Ministry of Lands and Natural Resources and the Forestry Commission have signed a historic Emissions Reduction Purchase Agreement (ERPA) with Tullow Oil Plc, marking a significant milestone in Ghana’s efforts to address deforestation and forest degradation.
The agreement, outdoored at a ceremony in Accra yesterday, represents a major step forward in Ghana’s commitment to sustainable development and environmental stewardship.
The partnership aims to promote sustainable land use and forest conservation, while generating revenue for local communities and supporting Ghana’s climate change mitigation efforts.
Mr Samuel A. Jinapor, MP, Minister for Lands and Natural Resources, hailed the agreement as a “bold and ambitious” initiative that demonstrates Ghana’s leadership in addressing the global challenge of climate change. He emphasized the importance of fair pricing of carbon credits, noting that Ghana’s partnership with Tullow sets a new benchmark for carbon pricing in the region.
The ERPA is part of Ghana’s broader efforts to promote sus¬tainable forest management and reduce deforestation and forest degradation.
The country he said has made significant progress in recent years, with initiatives such as the Ghana Cocoa Forest REDD+ Programme and the Ghana Shea Landscape Emission Reductions Project.
The partnership with Tullow is expected to generate significant revenue for local communities and support Ghana’s climate change mitigation efforts. The agreement also demonstrates the country’s commitment to sustainable development and environmental protection, and sets an example for other countries to follow.
The newspaper says that Ghana will continue to remain a key partner to Germany, to develop alternate energy sources in place of fossil fuel, the Special Commissioner for Innovation and Green Hydrogen at the Federal Ministry of Education and Research, Germany, Mr Till Mansmann, has assured.
He said consequently, his country was ready to support Ghana exploit her abundant renewable energy mix to include Green Hydrogen.
Mr Mansmann announced this when he interacted with selected journalists, at a cocktail dinner held in his honour at the residence of German Ambassador to Ghana, in Accra, on Monday, as part of his official working visit to Ghana.
The event was also to assess levels of collaboration and also discuss opportunities within the green hydrogen area.
Mr Mansmann said his country was very much committed to the Paris Treaty on Climate Action, and was working to achieve the climate action target, which included reducing dependence on fossil fuel to reduce emissions by 65 per cent by 2030..
“Germany knows that we are an energy importing country and we will be importing a lot of energy in the future, so Germany is looking for partners worldwide to replace fossil energy on a global scale and this is where Ghana comes in,” he stated.
Mr Mansmann underscored the need for Ghana and Africa as a whole to take advantage of their enormous renewable energy resources in order to attract investment into that sector.
“The opportunities for renewable energy investment in Africa are really great. Ghana is a good partner for us. We have partnership in education, Mathematics and in different fields and we are interested in making this cooperation towards energy more intensive,” he said.
GIK/APA
Ghana: Press focuses on depreciation of Cedi as businesses call for urgent interventions
