ADI gets tough on BoG over lack of credit support to private sector
The Alliance for Development and Industrialization, (ADI), one of the leading think tank groups in the country, has taken a swipe at the bank of Ghana, demanding from the governor to show clearly how he is going to mandate the banks to support the private sector, and not to create a safe haven for the banks.
The bank of Ghana spent close to GHC18 billion of tax payers’ money to clean up and also providing liquidity support for some banks.
According to the ADI, after this GHC18 billion clean up exercise by the bank of Ghana, to what extend has this impacted on the economy. “The banks are not ready to support the private sector, so why should the government uses tax payers money to support the banking industry, especially banks that were technically insolvent, due to bad corporate governance and mismanagement” the statement said.
“We want the governor of Bank of Ghana, Dr Ernest Addison to unveil to us what percent of banks’ capital should go to support the private sector. In Nigeria for instance, the Central Bank of Nigeria has come out with a caveat that 50 percent of banks capital should be lend to the private sector. We want the same policy to be replicated here”, according to Francis Mensah, the Convener of ADI.
The decision by the Central Bank of Nigerian was at the back off how banks repatriate huge profits from the country to their parent companies without the much need support to the private sector.
“You cannot keep taxing the private sector while you are not committed to their agenda. You don’t set rules, for the rules to favor one party. We must replicate what the central of Nigeria is doing to grow our private sector” the statement said.
This would feed into the continental free trade agenda, since most of the companies would become more competitive on the global market.
The banking sector profitability growth soars for the first months of 2019 but has decided to tighten their credit stance to the private sector.
The latest banking report from the statutory regulator, the Bank of Ghana has revealed that profitability of the banking industry improved during the first four months of 2019 compared with the same period last year.
The industry recorded an after-tax profit of GH¢1.1 billion, representing a year-on-year growth of 38.9 percent compared with 5.8 percent growth for the same period last year. The higher growth in net profit was underpinned by higher growth of net interest income during the review period.
Surprising to note, growth in gross loans and advances slowed from 6.8 percent in April 2018 to 6.1 percent in April 2019. In nominal terms, growth in the stock of credit to the private sector comprising private enterprises and households slowed by 3.5 percent to GH¢34.0 billion in April 2019 compared to 5.5 percent annual growth in April 2018.
In real terms, private sector credit contracted by 5.4 percent in April 2019 compared with a contraction of 3.7 percent a year ago. Credit to households amounted to GH¢8.4 billion in April 2019 compared with GH¢7.2 billion in the same period last year, indicating a yearly growth of 16.4 percent. Real growth in credit to households, accordingly slowed to 6.3 percent in April 2019, compared with 28.6 percent in April 2018.
Banks profitability growth has continued to increase, which means banks are making more money in the country but have decided to squeeze the private sector in terms of credit.
Source: Ruth Aboagye
1 million waste bin project launched in Accra
Universal Plastic Products and Recycling(UPPR) Ghana Limited in collaboration with Ecobank Ghana Limited and the Environment Service Providers Association has launched a 1 million Waste Bin project aimed at reducing “indiscriminate disposal” of waste in Ghana.
The launch which took place at the headquarters of ECOBANK GHANA LIMITED saw in attendance various stakeholders in the sanitation value chain,including the ministry of sanitation, members of Parliament, municipal assembly members and the media.
According to the managing director of Ecobank Ghana Limited,Mr Dean Sackey, Ecobank Ghana’s collaboration in this big project stems from its commitment to helping in the creation of massive awareness about environmental cleanliness among Ghanaians.
He reiterated the need for every home in Ghana to have a waste bin which according to him is essential in ensuring proper disposal and recycling of waste.
He revealed that Ecobank on its part has invested at least 10 million dollars as a medium term loan facility to support the production of waste bins to be distributed across the country.
The president of the Environmental Service Providers,Dr Joseph Siaw Agyepong indicated that the current filth insurgency engulfing the country can be attributed to the lack of sufficient waste bins in homes,workplaces,public bus stations and other places of the public sphere.
Speaking on the project,the chief Operating Officer for technical and Logistics Cluster of the Jospong Group of companies,Mr Alex Atakorah indicated that ensuring good sanitary conditions in Ghana can only come about through Public-Private partnership approach which is currently being pursued.
According to him,the Sustainable development goals which support a clean environment could never be achieved without the use of waste bins.
He also revealed that most of the operation the the Universal Plastic Products and Recycling are sourced and recovered from their dumpsites and landfills which all contribute immensely towards reducing the waste burden on the country.
The 1 million Waste project is expected to further complement the existing sanitation initiatives by the various government institutions in the country including Metropolitan assemblies and District Assemblies.
The special waste bins under the 1 million Waste Bin project have been fitted with Radio Frequency Identity tags that enable the Waste management companies to closely monitored to record how often the bins get emptied.
This feature is expected to eliminate the current situation of “Over-spill” of waste bins which often lead to air pollution and contamination.
Uniformed officials of the waste management companies with ID cards are expected to move into communities for the purposes of distributing and registering of the waste bins to homes,schools,offices and other public spaces.
Ghana signs deal to buy six aircraft for new national airline
The government on Tuesday, November 18, 2019, signed a deal with De Havilland Aircraft of Canada at the on-going Dubai Air Show to buy six Dash8-400 aircraft to start its national airline.
Citi Business News understands that the aircraft will be purchased by the first quarter of 2020.
The plan to reestablish a national carrier has been on the drawing board for some time now.
Following the signing of the agreement, issues of financing and others are expected to be finalized which will be presented to Cabinet for approval and then to Parliament.
The new deal, signed by the Aviation Minister, Joseph Kofi Adda, is expected to boost Ghana’s dream of seeing to it that a new national airline hits the skies.
The Minister of Aviation, Joseph Kofi Adda, who signed the Memorandum of Understanding on Ghana’s behalf, said “They’re manufacturing Dash-8s, which used to be called Q-400, that can take upwards of 82 passengers. That will be able to serve the domestic and regional needs of the passengers. We’ve done our research and we’ve assessed all the aircraft available, and we think these ones are the ones most efficient and suitable given the weather and so on, that we can use to carry Ghanaians within the country and also send them to other West African countries all the way up to Senegal, The Gambia, Cameroun, and Congo as well”.
“So these are things that the route planning people will work on as far as the details are concerned. But we want to be sure we’ve got the critical sets of aircraft that the airline can start operating them.”
Ghana signs MoU for 3 Dreamliners
Ghana has also signed an MOU (Letter of intent) for three (3) Boeing 787-9 planes.
“The second one is the Boeing 787-9, that’s a long haul. Long haul means it goes trans-oceanic. It goes to Europe, North America, it can go to Middle East and Asia. These were signed for three of the aircraft. These are all Memorandum of Understanding; they’re letters of intent indicating our desire to procure these aircraft. There are other processes we have to go through now with the manufacturers themselves, the government of Ghana, the approvals that would be required from all the government levels, we have to go through that between now and the end of the year to secure that.”
The Minister says Government will be assessing the various options in procuring the aircraft.
“There are different ways of procuring an aircraft. There’s a leasing arrangement that can go on with a third party paying for the aircraft, then you will pay periodically may be monthly or quarterly for the service of the aircraft with some down payment. There’s also the outright purchase which is another option. So these are options that we’ve weighed and we will place before the government. We’re hoping that once the government makes a decision on this, we will be able to make payments that are required for the aircraft to be delivered. We’ve been able to get some good discounts from where we are starting with the two manufacturers, and we think they’re reasonable terms which I cannot disclose for now, but once I meet cabinet and parliament these will become public knowledge.”
A name for new home-based airline
According to the Aviation Minister, a search is still ongoing on how to call the new national airline.
“So we’re happy that this has brought us to one tip of the bridge, so once we conclude the procurement, then we cross over to the next end of the bridge which means that we’re now airborne with a home-based airline. The name itself we’re waiting to discuss that at the government level, and gathering some inputs from different parties.”
No more expiry of voice, data bundles – Telcos ordered
No more expiry of voice, data bundles – Telcos ordered
The Ministry of Communications has directed telcos to roll over all unused data and voice bundles purchased by customers.
This will mean unused data and credit will not expire.
“All unused data and voice bundles purchased by subscribers do not expire and must be rolled over with the next recharge,” the Ministry said in the statement that also directed teclos to cease the instant deduction of the Communications Service Tax (CST).
The Ministry assured that Mobile Network Operators will be subjected to “strict compliance with exiting Quality of Service (QoS) standard to ensure value for the subscribers’ money in accordance with their licence obligations.”
The directive came in a letter written to the National Communications Authority and was copied the Chief Executive Officers of MTN and Vodafone as well as the two Deputy Ministers of Communication.
The Communications Minister, Ursula Owusu-Ekuful said this was part of measures to”minimise the negative impact of deduction of the CST.”
Currently, only AirtelTigo offers data bundles that do not expire.
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