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Ghana has lowest import duty on vehicles in Sub-Saharan Africa – Fitch



Ghana has lowest import duty on vehicles in Sub-Saharan Africa - Fitch

Ghana has lowest import duty on vehicles in Sub-Saharan Africa – Fitch

GHANA boasts of low import duty on vehicles by an estimated 31 per cent in Sub-Saharan Africa as well as a favourable regulatory environment, which will make it easier for automakers to operate in this market, international rating agency Fitch has said.

“Ghana also boasts a large driving-age population, scoring 62.9 out of a possible 100, which elevates the country’s reward potential in the long term and highlights the growth potential for automakers entering its market”, Fitch said in its latest research on “Sub-Saharan Africa Autos Sales: Rewards Remain Too Low to Justify Undertaking Risks.”

Mauritius placed first followed by South Africa in second and Botswana in third, taking the top three positions in Fitch Autos Sales Ris/Reward Index (RRI) for the Sub-Saharan region. However, they struggle to break through into the top 50 countries globally as Mauritius only manages to achieve the 69th position.

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The strengths of these countries Fitch stated to lie in their low-risk business environments, developed autos markets, relatively high consumer purchasing power and good quality of road infrastructure

Ghana is on the rise

With a Risk/Reward Index score of 37.7, Ghana ranks fourth in the Sub Saharan Africa region and is the fourth lowest risk automotive market in the region and the lowest in the Economic Community of West African States (ECOWAS) sub-region. The country’s strengths Fitch said lie in its overall low-risk environment, which outperforms the global average of 50.0, especially in terms of political risk.

“We believe that Ghana’s political stability is the linchpin for the future of its domestic automotive production industry. In our Autos Sales RRI, under the short-term political risk index and long-term political risk index categories, Ghana scores by far the best among the West African countries that we cover and comes in at second place in the wider SSA region,

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This Fitch said highlights how stable the country’s political outlook is for the next two years.

Under the long-term political risk index category in its RRI, Ghana scored 70.2 out of a possible 100, compared to the West Africa regional average of 17.4 (excluding Ghana), which indicates the stability of the country’s political environment over the next five-to-10 years, which gives Ghana a distinct advantage when it comes to its operating environment for automakers compared to its regional peers.

Tanzania, Kenya and Uganda followed in 5th, 6th and 7th respectively with Nigeria coming in at 9th.

Under the Reward pillar of our RRI, the SSA region outperforms the global average of 50.0 under two categories, namely ‘vehicle sales growth, five-year forecast average’ and ‘driving age population’.

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The 9 Financial blunders Ghanaian Young Men Commit



When a young graduate finally lands a job after university, it is such a big deal, even extended family members call to congratulate them.

Many of these men will go on to retire to a life they didn’t really want. Why?

It emanates from a series of blunders:

The Borrowed wedding:
A wedding is such a big deal in our society. The only problem is that most at times, the young man who is yet to himself financially will have to bear all the costs alone. Some can’t afford all the expenses and may be tempted to borrow some money to top up.

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The wedding is done, people come and eat and drink and leave them to service their debt. The wedding gifts normally won’t bail you out.

2. The Borrowed House

After marriage, the young man often realizes his “chamber and hall” apartment is not big enough for his bride, he needs to get a bigger space, once again he borrows some money (say from a credit union)to pay at least two years to rent advance, compounding his debt.

3. The Borrowed Car

Then comes the pregnancy and kids, the young man realizes that a car is an absolute necessity to make life easier for the family. So when he is approached by those beautiful bank ladies for a cool loan deal, he jumps at this and buys that Toyota Corolla. Repayment of the car loan alone can take up to 40% of his net monthly salary, whilst servicing the rent and wedding debts on the side.

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4. The Family Savior Wahala

The young man soon discovers that the reason for the rejoicing of the family members. It is payback time. From siblings, parents, aunties, cousins, in-laws, including the distant relative who helped you cross the village river when you were five years everyone digs in to get their share of the young man’s fortune It is normally small tokens, but when aggregated is a big deal ( about 30% of annual salary)

5. The Seed Eaters Wahala

These are family, colleagues, and friends who borrow money from the young man with no intention to pay. They come up with all those emergency stories with the promise to pay the next month. They never pay. It normally ends in tears and ruined relationships.

6. The “Big Boy” Wahala

The young man would have hopefully made strides in his career at this stage of his life, which comes with more salary, but then the extra disposable income doesn’t go into savings or investments. Seeing themselves as “big boys “ they quickly elevate their spending, renting bigger houses with spare rooms hardly utilized, get bigger cars, family holidays etc.

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7. The Two Masters Wahala

At this point in the man’s life, he would have secured a piece of land and started building his dream house normally with a bank loan whilst paying those huge sums of rent to his landlord on a yearly basis. Being indebted at the same time to the bank and your landlord is like serving two masters. In my view, it is better to serve one master( the bank)

8. The Strangling Wahala

The kids are growing, and so are their fees and other upkeep. Some may be ready to go to college, but Daddy didn’t have an educational investment. He needs to dig deep to sort out the kids’ education. There is still the ever-mounting family financial pressures. At this point in the man’s life, he earns a lot but has equally neck level expenses to match it

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9. Where did it All Go Stage?

At this point, the man is in his mid-fifties, May still have college responsibilities to take care of. He may be putting finishing touches to his dream house( which took decades because of its gargantuan nature. It will later dawn on him that the kids will soon leave home and the six-bedroom dream house is too big for just the wife and himself

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The bells of pension begin to sound louder as the days go by, only to realize that he had worked most of his years:

a. For the banks servicing loans, he could have avoided with a lot more prudence,

b. For landlords, paying unreasonable rent advance year after year for too long a time.

c. Family and friends in his bid to becoming a one-stop solution for all their needs

He has worked for everyone except himself, without any financial plan set out at the beginning of his career, he will be at the mercy of his employer and loved ones at the end of his career.

Many men could enjoy a fulfilled retirement, if they had actively planned, instead they prefer to flow with the tide, unfortunately, some get sunk by the tides of life.

Get a financial plan the moment you start working, allow the power of compound interest to work hard for you, and make sure you enjoy retirement.

Remember that Joseph in the Bible had only 7 years to prepare for another 7 years of drought.

Ask yourself? After working for at least 30 years, If you are to live for another 30 years after your retirement, will you live comfortably financially or be at the mercy of others?

Author: Roland Ofori, Marketing Professional

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”Government Will Start Arresting Mallams And Lotto Operators On TV” – Information Minister Hints



The Minister of Information, Kojo Oppong Nkrumah has hinted on the government’s intention to clamp down on Mallams and lotto operators on TV soon.

The minister also hinted that the government has written to the Bank of Ghana and the National Media Commission to clear out all these scammers and fraudsters who successfully swayed viewers into losing their hard-earned money with their fraudulent schemes.

In an interview on Accra-based Peace FM, the Information Minister noted his outfit as well the government is aware of the worrying trend that’s why they are taking measures to have these charlatans flushed out.

He said a letter has been written to the Bank of Ghana to clamp down on these individuals chanting money because it’s the sole preserve of the Bank of Ghana to produce notes of money in the country.

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