Ghanaian press spotlights warning by GNCCI of negative effects of hike in policy rate, others

APA – Accra (Ghana)
The warning by the Ghana National Chamber of Commerce and Industry (GNCCI) that the recent increase of the policy rate to a historical high of 29.5 per cent will worsen the plight of businesses in the country’s one of the trending stories in the Ghanaian press on Thursday.
The Graphic reports that the Ghana National Chamber of Commerce and Industry (GNCCI) has said the recent increase of the policy rate to a historical high of 29.5 per cent will worsen the plight of businesses in the country.
The chamber expressed concern that the continuous increase of the policy rate from 14.5 per cent in March 2020 to the current level was alarming and would have detrimental impact on the business climate in Ghana.
The Bank of Ghana last Monday increased its policy rate from 28 per cent to 29.5 per cent.
The Central Bank said the increase in its policy rate was to tame inflationary pressures, a situation many businesses have decried arguing that it makes the cost of borrowing too high. The increase in BoG’s policy rate comes on the back of marginal decline in inflation rates from a record high of 54.1 per cent in December to 52.3 per cent at the end of February.
A release by the chamber stated that in the face of the challenges businesses have encountered over the past few years, including supply chain disruptions, reduced demand, cashflow challenges, and the recent upward adjustment of utility tariffs, the posture adopted by the Central Bank did not augur well in sustaining a conducive business environment.
“Majority of businesses including GNCCI members are struggling to break-even in their business operations which is critically undermining their competitiveness, with some manufacturing companies already citing production units outside Ghana to enjoy cheaper inputs.”
“The GNCCI holds the view that the recent hike in the monetary policy rate will exacerbate the challenges confronting businesses in Ghana, as it will result in higher borrowing costs and reduced investment, thereby hampering growth and employment prospects,” the release noted.
The release also noted that the policy rate would also have adverse effects on consumer spending, exchange rates and inflation expectations, consequently dampening the business climate in Ghana.
The newspaper says that Wednesday marked the 79th birthday of Nana Addo Dankwa Akufo-Addo, the President of Ghana.
To celebrate his birthday, news outlets across the country have been reflecting on his tenure in office, including his most notable quotes.
One of the most famous quotes from President Akufo-Addo is his call to “build a Ghana beyond aid.” This statement has become a rallying cry for his administration’s efforts to create a self-sufficient economy that can sustain itself without relying on foreign assistance.
Another notable quote from President Akufo-Addo is his declaration that “Ghana is open for business again.” This statement was made in the early days of his presidency as he sought to attract foreign investment and spur economic growth.
Throughout his time in office, President Akufo-Addo has emphasized the need for unity and cooperation among Ghanaians. He has spoken about the importance of restoring a sense of pride in being Ghanaian and working together to build a nation that everyone can be proud of.
As the country continues to face challenges, including the COVID-19 pandemic and economic uncertainty, President Akufo-Addo has remained committed to his vision for a prosperous and self-reliant Ghana.
On his birthday, many Ghanaians have taken to social media to wish the President a happy birthday and to express their gratitude for his leadership.
As one Twitter user wrote, “Happy Birthday to our President, Nana Addo Dankwa Akufo-Addo. Thank you for your service to our country and your commitment to building a better future for all Ghanaians.”
The Ghanaian Times reports that the Minister for Lands and Natural Resources, Samuel A. Jinapor, says government’s quest to build an integrated aluminium industry in the country is on course, and progressing steadily.
He said that was in line with the Ghana Integrated Aluminium Development Corporation Act, 2018 (Act 976), which established the Ghana Integrated Aluminium Development Corporation (GIADEC) to promote and develop an integrated aluminium industry in the country.
The Minister said this when he opened a two-day workshop on the downstream aluminium industry at Akosombo in the Eastern Region.
The workshop, which was organised by GIADEC, in partnership with the Strategic Anchor Industries Unit of the Ministry of Trade and Industry and the Overseas Development Institute (ODI), brought together stakeholders in the aluminium industry to deliberate on policy options and implementation plan for the downstream aluminium industry.
This follows an extensive research, data collection and technical analysis of best practices across the world carried out by GIADEC and ODI.
Delivering the keynote address, Mr Jinapor emphasised the need to add value to mineral resources to ensure optimal benefit from these resources.
He said government had since 2017 been pursuing the path for benefit from all mineral resources including gold, bauxite, iron ore, lithium and other green minerals.
Speaking specifically on bauxite, Mr Jinapor said while the raw ore sold at around $60.00 per metric tonne, primary aluminium, produced from bauxite, sold for over $2,000.00 per metric tonne.
The newspaper says that a flag bearer hopeful of the New Patriotic Party (NPP), Dr Owusu Afriyie Akoto, has admonished Ghana and Zimbabwe to immediately scale up trade among themselves under the framework of the African Continental Free Trade Area (AfCTA) considering the economic distress they are experiencing.
According to him, the impact of the global economic recession on the two countries gave credence to calls for Accra and Harare to find solutions to their own problems.
One such solution, he noted, was to increase trade volumes among themselves since there existed many opportunities that could be explored to achieve that feat.
“This event is occurring at a period when the whole world finds itself in a state of economic distress. It presents an opportunity for us to find lasting solutions to our challenges. If you look at the share of intra-Africa exports as a percentage of total African exports, it tells us that internal trade on the continent is a must,” he noted.
Speaking as the guest of honour at the Zimbabwe-Ghana Business Forum, which opened in Accra, on Monday and ended yesterday, the immediate-past Minister of Food and Agriculture further noted that the volume of trade among countries within the African continent was too small compared to the total global trade.
Statistics from the AfCTA show that trade between Ghana and Zimbabwe stood at just a little over US$3 million in 2022.
Zimbabwean Ambassador to Ghana, Dr Kufa Edward Chinoza, in his opening remarks was hopeful that with initiatives such as the AfCTA, trade agreement and business linkages through such fora, there would be a change in the current situation.
He urged ZimTrade and the Ghana Export Promotion Authority (GEPA) to work hand-in-hand and provide the business communities of the two countries with real time data and market intelligence to assist them make informed decisions if they wanted diversity and explore new markets.
“These initiatives can, indeed, lead to increased trade between our two countries,” said Ambassador Chinoza.
GIK/APA