Ghana: Press zooms in on Govt’s debt restructuring plan, others

The report that the government has received a draft memorandum of understanding from the Official Bilateral Creditor Committee co-chaired by France and China, representing the final step in the country’s negotiations with its bilateral creditors to restructure $5.4 billion of its bilateral debts is one of the leading stories in the Ghanaian press on Monday
The Graphic reports that the government has received a draft memorandum of understanding from the Official Bilateral Creditor Committee co-chaired by France and China, representing the final step in the country’s negotiations with its bilateral creditors to restructure $5.4 billion of its bilateral debts.
This is expected to pave the way for the release of the third tranche of $360 million from the International Monetary Fund (IMF) as part of the fund’s extended facility programme with the government of Ghana.
Already, the country has received $1.2 billion from the fund.
This was disclosed by the Minister of Finance, Dr Mohammed Amin Adam, at a news conference in Accra yesterday.
Dr Amin Adam said the government, with support from its financial and legal advisors, would review the MoU to finalise and sign the agreement with the creditor committee as soon as possible.
The signing of the MoU will pave the way for the Executive Board of the International Monetary Fund (IMF) to approve the second review of the country’s three-year programme with the fund.
The approval of the review will then unlock the third tranche of $360 million from the IMF, bringing the total disbursement under the programme to $1.56 billion.
As part of the country’s programme with the IMF, the government was tasked with restructuring both its domestic and external debts.
The newspaper says that Unilever Ghana PLC has declared a dividend for the first time since 2019, offering shareholders 40 pesewas per share.
This payout, totaling GH¢25 million, will be distributed on June 24, 2024, to shareholders listed in the company’s register as of May 22, 2024, the company revealed during its Annual General Meeting (AGM).
The announcement comes on the back of a significant financial turnaround for the year 2023, with the company reporting a profit of GH¢141 million, a substantial increase from the GH¢15 million recorded in the previous year.
The Chairman of the Board of Directors, Edward Effah attributed this impressive performance to a 44 percent increase in turnover driven by price hikes, product innovation, and investment in brand equity.
“I would like to thank the group’s employees, led by an exceptional management team, for delivering an outstanding performance in 2023 by combining remarkable growth in margins with record cash generations,” said Mr. Effah.
In addition to the financial success, Unilever PLC, the parent company, agreed to write off GH¢75 million in royalties due from 2019 to 2021.
Mr. Effah explained that this decision was necessary as future cash flows from Unilever Ghana were not expected to cover historical and future royalties and dividends.
Mr. Chris Wulff-Caesar, Managing Director of Unilever Ghana, highlighted the company’s sectoral growth.
The Ghanaian Times reports that a research scientist formerly with the Council for Scientific and Industrial Research (CSIR), Professor Roger Kanton, has advocated the establishment of what he termed “Ghana Agriculture Service” to spearhead the transformation of agricultural governance and productivity in the country.
Prof. Kanton explained that the proposed service, similar to the Ghana Education Service and Ghana Health Service, would bring more technical expertise, stakeholder involvement, and better working conditions to advance the sector.
Additionally, the professor, who worked at the CSIR’s Savannah Agricultural Research Institute, proposed the founding of a “National Farmers Union” to serve as the collective voice for farmers across the country to enable them to push for better policies and support systems.
He made the two proposals on Saturday in an interview with the Ghanaian Times on reforms that were critical to the improvement of the agriculture sector, which contributes more than 20 per cent to the country’s Gross Domestic Product (GDP) and a mainstay of the economy.
He said currently the Ministry of Food and Agriculture was dominated by politicians who often interfered in technical matters and implemented “top-down policies” without adequate consultation with farmers and other stakeholders along the agricultural value chain.
A dedicated agriculture service, Prof. Kanton said, should be staffed by technical experts and professionals from relevant fields such as agriculture, veterinary sciences, plant pathology who would insulate the service from political interference and ensure policies and programmes are driven by evidence and expert knowledge rather than political rhetoric.
Moreover, the professor said the service would facilitate a bottom-up approach by actively involving farmers, processors, transporters, exporters and other key players in decision-making.
He cited the failure of initiatives like “Planting for Food and Jobs” and the Genetically Modified Organism (GMO) controversy as examples of policies that faced backlash due to lack of proper consultation with stakeholders.
Additionally, he said staff under an agriculture service would have better career prospects, training opportunities and benefits compared to the current setup under decentralised departments.
The newspaper says that Ghana on Friday joined the rest of the continent to commemorate the 61st African Union (AU) Day with a flag-raising ceremony at the forecourt of the State House in Accra.
The actual day was Saturday, a weekend.
The AU, originally the Organ­isation of African Unity (OAU), was formed on May 25, 1963, to ensure the complete political emancipation of the African people through the promotion of unity and solidarity.
In 2002, the OAU was trans­formed into its current state and named with the vision to foster solidarity and harness the resources and resourcefulness of Africans for sustained economic emancipation.
The day is celebrated annually to honour the efforts of the founding fathers who embraced the vision of a united Africa and fought for the liberation of the continent.
This year’s celebration was marked on the theme: ‘Educa­tion Fit for the 21st Century: Building Resilient Education Systems for Increased Access to Inclusive, Lifelong Quality and Relevant Learning in Africa.’
GIK/APA