APA – Accra (Ghana)
The report that the Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has described the International Monetary Fund approval of the $3 billion Extended Credit Facility for Ghana as a positive development for the domestic economy is one of the leading stories in the Ghanaian press on Wednesday.
The Ghanaian Times reports that the Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has described the International Monetary Fund (IMF) approval of the $3 billion Extended Credit Facility (ECF) for the country as a positive development for the domestic economy.
“The approval of the US$3 billion ECF arrangement has reinforced recovery efforts at restoring macroeconomic stability and debt sustainability. This should further help re-establish investor confidence in the domestic economy,” he stated during a press conference in Accra on Monday, after the 112th regular meeting of the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG).
He explained that approval of the facility was good for the country but not a magic wand to turn the economy around.
“The programme is conditional on a strong implementation of the fiscal and structural policies under the programme going forward. This includes structural reforms on tax policy, revenue administration, and public financial management to boost revenues and reposition fiscal policy implementation on a consolidated and sustainable path,” he said.
Dr Addison said the first tranche of $600 million of the ECF disbursed to the country and which had hit the account of the BoG, in the short to medium term, would help address the forex challenges facing the country.
“The IMF support is not a solution to the forex challenge facing the country. It will help meet our forex liquidity and anchor exchange rate expectations,” said the Governor of BoG.
He said the amount was not meant for balance of payment, but would be used to finance the 2023 budget.
The newspaper says that the Vice President, Dr Alhaji Mahamudu Bawumia, has reiterated the government’s commitment to ensuring the successful implementation of the Abidjan-Lagos Corridor Highway Project.
According to him the project was on the priority list of the government and it was keenly looking forward to the commencement of the project.
The Vice President said this in a speech read on his behalf by the Senior Minister and Presidential Advisor, Mr Yaw Osafo Maafo, at the 19th Steering Committee Meeting of Experts on the Abidjan – Lagos Corridor Highway Project on Friday in Accra.
The three-day event attracted the Works, Roads and Highways Ministers of the five member countries and other development partners including the African Development Bank, the European Union and the Japanese International Development Corporation.
Issues discussed included the feasibility and detailed designed studies, the public private partnership and transitionary, trade and transport facilitation, special development initiative advisory, financial audit and road safety audit and the establishment of the Abidjan – Lagos Corridor Management Authority (ALCOMA).
The 1,028 kilometre six-lane dual highway is key in realising the full benefits of the African Continental Free Trade Area (AfCFTA) and would also include the integration of the rail infrastructure and industrial zones along the corridor to help the sub-region achieve the full potential of the highway project.
Dr Bawumia stated that the alignment of the road in Ghana and the member countries would boost economic activity while the proposal to bypass Accra and construct a 3km tunnel through the Akwapim Hills would avoid the extensive displacement of affected communities.
The Vice President commended the Chair of the Steering Committee, Babatunde Fashola of Nigeria and the experts for their commitment and charged the team to unite and see to the realisation of the project.
The Graphic reports that some civil society organisations (CSOs) working on extractives governance in Ghana are calling for the immediate removal of Freddie Blay as Board Chairman of the Ghana National Petroleum Corporation (GNPC), and Opoku Ahweneeh Danquah as Chief Executive of the GNPC.
The CSOs say their demand stems from the inability of the two to give Ghana better deals between the GNPC and its partners and thereby disregarding significant revenue potential the GNPC holds for the state.
Speaking at a press conference today (May 23, 2023) in Accra, the CSOs made reference to the GNPC’s plan to sell a 50 percent stake in Jubilee Holdings Limited (JOHL), which is a subsidiary of the GNPC to PetroSA, disregarding the significant revenue potential it holds for the state.
Abdulkarim Mohammed, the Coordinator for the Economic Governance Platform, speaking on behalf of the CSOs at the press conference expressed concerns about the continued presence of Mr Blay and Mr Danquah in the management of the GNPC.
He said their involvement poses substantial risks to Ghana’s interests in Jubilee Holdings Limited.
“We demand the immediate removal of Opoku Ahweneeh Danquah, GNPC’s CEO, and Freddie W. Blay, the Board Chairman, from their positions as they have become a threat to Ghana’s petroleum sector,” stated Mr. Mohammed.
The CSOs are also urging swift political action to address two significant developments in Ghana’s petroleum industry.
In a jointly signed statement which was read at the press conference, they mentioned controversies surrounding Aker Energy and AGM operations, as well as the sale of Jubilee Oil Holding Limited’s stake in the Deepwater Tano block.
The newspaper says that six business operators, including two Chinese, have been arrested in Accra for failing to issue Value Added Tax (VAT) invoices to customers.
Although the identities of the arrested persons were not disclosed, their businesses were given as Computer Land Ghana Limited, dealers in computers and accessories, and Hiang Vegetables and Fruits Chinese Supermarket, both at Osu; Emelijo Enterprise, a shop that sells disposables at La Wireless; U-Fresh Company Limited, a beverages manufacturing company owned by some Chinese, and Sulas Enterprise, dealers in power generating sets and construction machinery and Mahalia Kollection, a clothing shop, all at Spintex.
They are part of 93 businesses out of 115 found not to be issuing VAT invoices to customers who patronise their services.
The businesses illegalities were discovered through undercover investigations known as mystery shopping or text purchase, after the team visited 115 companies in a week of undercover exercises.
It is an offence for a registered tax paying business to fail to issue VAT invoice to customers who patronise their services.
They were arrested by the VAT investigation taskforce of the Ghana Revenue Authority (GRA) during a VAT enforcement exercise yesterday.
Although the exercise was smooth, the taskforce had a tough time when they visited the Hiang Vegetables and Fruits Chinese Supermarket, as the managers of the place would not cooperate with the GRA team.
It is an offence for a registered tax paying business to fail to issue VAT invoice to customers who patronise their services.
GIK/APA
Press focuses on impact of IMF’s $3bn facility on Ghana’s domestic economy, others
