Ghana Is Said to Triple Minimum Capital Requirements for Banks

Ghana Is Said to Triple Minimum Capital Requirements for Banks

ACCRA (Capital Markets in Africa) – The Bank of Ghana more than trebled minimum capital requirements for lenders as part of reforms aimed at strengthening the industry, according to people familiar with the matter. Banks will need to set aside at least 400 million cedis ($91 million) in capital compared with 120 million cedis previously to meet their license obligations, the people said, asking not to be identified because an official announcement hasn’t yet been made. Lenders…

Read More

IMF Extends Ghana Oversight as Bailout Plan Gets Another Year

IMF Extends Ghana Oversight as Bailout Plan Gets Another Year

ACCRA (Capital Markets in Africa) – The International Monetary Fund approved a one-year extension of its credit-facility program with Ghana, lengthening the lender’s economic oversight of the West African nation which is battling to keep spending under control. The country’s Eurobonds rallied. The extension follows after the IMF completed a fourth review of an almost $1 billion assistance program with Ghana agreed to in April 2015, when chronic overspending and power cuts drained public finances and…

Read More

Ghana to Cut 2017 Spending as It Struggles to Raise Revenue

Ghana to Cut 2017 Spending as It Struggles to Raise Revenue

ACCRA (Capital Markets in Africa) – Ghana plans to cut spending this year as weak revenue collections are the “Achilles’ heel” in getting its accounts to balance, Finance Minister Ken Ofori-Atta said. “We are trying to contain expenditures as much as we can,” Ofori-Atta said at a conference Monday in the capital, Accra. In July, the West African nation trimmed the budget-deficit forecast to this year 6.3 percent of gross domestic product from 6.5 percent. Constant overspending prompted…

Read More

Ghana targets five million passengers yearly with AfDB-funded international airport expansion

Ghana targets five million passengers yearly with AfDB-funded international airport expansion

ACCRA (Capital Markets in Africa) – The project, funded by the African Development Bank (AfDB) with a $120-million facility, will improve air transport in the country. It is also expected to contribute towards boosting the country’s economy, reduce the cost of doing business, and improve competitiveness. “This terminal is being built for a successful economic future. Its large capacity is a confident statement of intent,” said AfDB President, Akinwumi Adesina during a tour of the…

Read More

Ghana Seeks to Rein In Runaway Spending With New Legislation

Ghana Seeks to Rein In Runaway Spending With New Legislation

ACCRA (Capital Markets in Africa) – Ghana wants to put an end to chronic overspending by making it illegal to propose or implement a budget where the deficit is larger than 5 percent of gross domestic product, Finance Minister Ken Ofori-Atta said. The West African nation’s government will this year ask lawmakers to amend the Public Financial Management Act to limit the budget deficit from 2018, Ofori-Atta said by phone on Thursday. The Finance Ministry will ensure…

Read More

Tullow Plans More Ghana Wells Once Maritime-Border Spat Settled

Tullow Plans More Ghana Wells Once Maritime-Border Spat Settled

ACCRA (Capital Markets in Africa) – Tullow Oil Plc plans to drill more wells off Ghana once a ruling on a border dispute is out of the way. Ghana and Ivory Coast disagree over their maritime boundary, frustrating projects to pump oil and gas offshore. In September, the International Tribunal for the Law of the Sea, or Itlos, will rule on the matter, likely clearing the way for an expansion of Tullow’s Tweneboa-Enyenra-Ntomme project, the company said. “We were…

Read More

Interest Rate Cut May Fuel Rally That Made Ghana Stocks World’s Best

Interest Rate Cut May Fuel Rally That Made Ghana Stocks World’s Best

ACCRA (Capital Markets in Africa) – Ghana’s central bank has likely given the world’s best-performing stocks this quarter a boost. It cut its key interest rate for a third straight meeting on Monday and has now reduced borrowing costs this year by 4.5 percentage points to the lowest level since early 2015. That eases funding costs for companies and boosts the appeal of their shares, according to IC Securities Limited, the country’s biggest broker.  “Investors are…

Read More
1 2 3 32