Business in Ghana

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Archive for June 21st, 2014

Posted by Business in Ghana on June 21, 2014

By Matthew Mpoke Bigg,

ACCRA, June 20 (Reuters) – Ghana’s government reintroduced fuel subsidies in April, without announcing the move, and has spent around $85 million since then in extra payments, the head of the Chamber of Bulk Oil Distributors (CBOD) told Reuters on Friday.  The subsidies were scrapped early last year in a bid to reduce the budget deficit and restore macro-economic stability in Ghana, a country that exports oil, gold and cocoa and has seen five years of rapid economic growth.  The reintroduction was not publicly announced and senior government officials were not available for comment.

But the CBOD’s chief executive Senyo Hosi said the fuel importers his organisation represents know about the subsidies because they show as a line in the pricing structure they regularly receive from the National Petroleum Authority (NPA).  “From April 16, they have been doing that massively …. The government has spent roughly $85 million in fuel price subsidies in the second quarter which is not accounted for in the budget,” he said, citing NPA figures.  The new subsidies are around 13 percent of the combined total of the global market price plus the amount added by government in taxes and levies, he said. T he full cost to the government, however, may be higher once the impact of the currency depreciation is taken into account.  Other industry sources, who asked not to be identified, confirmed the reintroduction of the subsidies. Read the rest of this entry »

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World Cup Diary 4

Posted by Business in Ghana on June 21, 2014

From Kwasi Gyan Appenteng

LET US WAVE THE FLAG FOR VICTORY

………as Spain’s exit gives us hope

Spare a thought for Spain. The European and World champions are the first reigning kings of world football to go out of the tournament so ignominiously. They lost both their opening matches with a collection of seven balls from their own net. In some ways their two nil defeat to Chile which effectively sealed their exit warrant must be more painful than the earlier five goals to one drubbing at the hands of the Dutch. At least, there was light at the end of the tunnel after the first match; Wednesday’s defeat meant lights out for Spain whose King Juan Carlos signed his own abdication warrant earlier that day in the national Parliament in Madrid.

One almost feels Spain’s pain; almost, but not quite because by some strange logic, Spain’s loss gives Ghana a glimmer of hope. This is how the roundabout logic works: this World Cup has been full of surprises. Apart from the fall of Spain, Brazil’s lucky draw against Mexico and Australia’s valiant loss by 2-3 to the Netherlands are part of the narrative of surprise which is becoming a dominant motif of the tournament. Read the rest of this entry »

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