The report of the state of the economy by Vice-President Mahamudu Bawumia that although the COVID-19 pandemic has shaken the strong foundation of the Ghanaian economy, the growth of the economy is fundamentally stronger than it was in the 2013-2016 period is one of the leading stories in the Ghanaian press on Friday.
The Graphic reports that Vice-President, Dr Mahamudu Bawumia has said although the COVID-19 pandemic has shaken the strong foundation of the Ghanaian economy, the growth of the economy is fundamentally stronger than it was in the 2013-2016 period.
Speaking on the state of the economy at the TESCON national conference on Thursday, 7 April in Kasoa, Dr Bawumia said “the path of inflation in Ghana has been similar to those of other countries following the COVID pandemic. Inflation had declined from an average of 17.5% in 2016 to an average of 7.2% in 2020. Since the pandemic, inflation has increased to an average of 10% in 2021.”
“As of February 2022 inflation rose further to 15.7% as a result of global conditions, including a rise in crude oil and other commodity prices and the Russian-Ukraine conflict. It is important to note that between 2013 and 2016 inflation averaged 15.9%. Between 2017 and 2021, however, inflation has averaged 10.4% notwithstanding the impact of COVID-19.”
Bawumia said notwithstanding COVID-19, interest rates are lower now than they were in the 2013 -2016 period.
“Before COVID-19, the steady disinflation process provided scope for significant monetary policy easing. The Bank of Ghana’s Monetary Policy Rate (MPR) was cut by a cumulative 11% between January 2017 and January 2021.”
“This translated into a reduction in short term interest rates, with the interest rate on the 91-day Treasury bill declining from an average of 21.2% between 2013 and 2016 to an average of 13.8% between 2017 and 2021. Lending rates have also fallen from an average of 28% between 2013 and 2016 to an average of 23% between 2017 and 2021,” he said.
Bawumia added that in response to the recent increase in inflation, the Bank of Ghana has increased the policy rate by 2.5% from 14.5% to 17.0%.
The newspaper says that the Minister of Finance, Ken Ofori-Atta, has called on the Ghana Revenue Authority (GRA) to adopt new strategies to address tax leakages at the Tema Port.
Doing that, he explained, would help the government to raise the needed revenue for national development.
Speaking during a tour of some terminals at the Tema Port yesterday the minister expressed worry that the loss of revenue at the ports, particularly through tax evasion, was being aided by some members of the trading public in alleged connivance with some port officials.
“While it is worth commending the GRA for the efforts they are putting in to ensure the needed revenues are raised from the country’s ports, a lot more ought be done to block any loopholes through which state funds are lost,” Mr Ofori-Atta said when he toured some terminals at the Tema Port.
The visit was to enable the minister and his team to assess the state of cargoes listed on the Uncleared Cargo List (UCL) at the various holding terminals at the port.
It was also to enable him to identify what digitised measures could be employed in tracking such cargoes to help address the issues of revenue leakage.
The Ghanaian Times reports that President Nana Addo Dankwa Akufo-Addo has expressed concerns over the continuous decline of the oceans in the world.
The President fears the continuous decline can have far-reaching implications on job creation, poverty alleviation, livelihoods, and economic stability if not addressed.
“This God given asset faces existential threat, largely from pollution and over exploitation and we need to take decisive action now to safeguard the oceans’ capacity to regenerate and to continue to deliver substantial economic, environmental and social value for human development,” he said.
The President said this in Accra yesterday when he opened the 7th meeting of the ministers in charge of Fisheries and Aquaculture of the Organisation of African, Caribbean and Pacific States (OACPS).
The two-day ministerial meeting, hosted by Ghana’s Ministry of Fisheries and Aquaculture Development, brought together leading fisheries professionals and practitioners.
They will share national and regional best practices and identify collaborative approaches for replication in other members of the OACPS for the sustainable development and growth of its fisheries and aquaculture sector.
The meeting is on the theme “OACPS’s Blue Economy Agenda 2030 – Catalysing Sustainable Fisheries and Aquaculture Development for the Future.”
President Akufo-Addo called on members of the OACPS to take decisive and urgent measures to reverse the ocean’s accelerating decline.
The newspaper says that the Bank of Ghana (BoG) has cautioned businesses to desist from pricing goods in dollars.
According to the BoG, the Ghana Cedi still remained the sole legal tender for transaction in the country.
This was contained in a press statement issued in Accra yesterday and signed by the Secretary of the Bank, Ms Sandra Thompson.
“The BoG cautions the general public to desist from dealing in illegal forex activities (black market transactions), pricing, advertising, receipting or making payments for goods and services in foreign currency in Ghana, without the requisite license or authorisation from Bank of Ghana,” the statement said.
According to the BoG, the practice was against the Foreign Exchange Act 2006 (Act 723) which prohibited individuals, companies and institutions from engaging in foreign exchange business without a license issued by the bank or pricing, advertising, receipting or payment of goods and service in foreign currency.
Those who were found culpable, the statement said, would be subjected to a fine of up to 700 penalty units or a term of imprisonment of not more than 18 months or both.
The Bank further noted that it would in collaboration with National Security and Law Enforcement Agencies continue to clamp down on all illegal foreign exchange operators in the country and would be made to face the full rigorous of the law.
“Bank of Ghana, in collaboration with National Security and Law Enforcement Agencies will continue to clamp down on illegal foreign operations. All offenders shall be dealt with in accordance with the law,” the statement said.
The bank had therefore urged the general public to report any violation witnessed for the necessary actions to be taken in order to ensure sanity in the financial sector.
GIK/APA