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Ghana’s Long Fiscal Consolidation Plan Has Slippage Risk

ACCRA (Capital Markets in Africa) – The slow pace of the consolidation path outlined by Ghana’s 2021 budget statement, presented on 12 March, and by the accompanying medium-term fiscal framework leaves Ghana exposed to a heavy debt-service burden and risks of fiscal slippage, says Fitch Ratings. The path is supported by new revenue measures and the gradual implementation of expenditure cuts. We indicated that our assessment of the medium-term trajectory of public debt would be…

Ghana Said to Target Swift Sale of $3 Billion in Eurobonds

Posted on by The Editorial Team

ACCRA (Capital Markets in Africa) – Ghana is favoring a sale of as much as $3 billion in Eurobonds this quarter as the country seeks to finance its budget and reduce borrowing costs, according to two people familiar with the matter. While the West African nation’s budget requires net foreign financing of 9.8 billion cedis ($2 billion), it will seek an additional $1 billion if it’s able to issue debt at lower rates than what it’s…

Ghana’s Economy Likely up to 40% Bigger, Reuters Reports

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ACCRA (Capital Markets in Africa) – Ghana’s economy could be as much as 40 percent bigger when the statistics agency publishes overhauled data on output in September, Reuters reported, citing government officials it didn’t identified. A bigger gross domestic product could improve Ghana’s debt ratio and get the government closer to achieving its budget-deficit target of 4.5 percent of GDP this year. The $45-billion economy is the seventh biggest in sub-Saharan Africa and one of…

Ghana May Struggle to Repay Lenders’ $1.3 Billion Cocoa Loan

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ACCRA (Capital Markets in Africa)- Ghana Cocoa Board may struggle to fully pay back loans of $1.3 billion as this season’s harvest will likely be smaller than first anticipated, according to the head of the industry regulator. The world’s second-biggest grower signed for the loans with lenders such as Credit Agricole SA and Natixis SA prior to the start of the annual harvest in October to pay farmers for their beans. Ghana will probably not meet…

Ghana Cuts Key Rate to Three-Year Low as Inflation Slows

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ACCRA (Capital Markets in Africa) – Ghana cut its benchmark interest rate to the lowest in more than three years as inflation slows toward the central bank’s target. The Bank of Ghana reduced the rate to 20 percent, Governor Ernest Addison, told reporters in the capital, Accra, on Monday. Of the eight economist surveyed by Bloomberg, four forecast the move. Ghana will meet the inflation target of 6 percent to 10 percent “at worst” by the second quarter of…

Ghana to Cut $2.2 Billion Bill With Farm Support, President Says

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ACCRA (Capital Markets in Africa)- Ghana has a target of supporting one million farmers in the next four years with plans to invest in agriculture as the West African nation seeks to increase trade and cut its reliance on food imports that cost about $2.2 billion annually. While Ghana is the world’s second-biggest cocoa producer, it imports more than two-thirds of the staples such as wheat and rice that it needs, according to the United Nations’…

Ghana Central Bank Governor Sees Room for Further Rate Cut

Posted on by The Editorial Team

ACCRA (Capital Markets in Africa) – Bank of Ghana Governor Ernest Addison said there is scope for a further cut in the country’s main interest rate should the economy keep improving. “If the fundamentals of the economy are seen to be improving, then there is room for a rate cut, even though inflation has stayed at around 12 percent,” he said in an interview Tuesday in the capital, Accra. The central bank of West Africa’s biggest economy…

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