Business in Ghana

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Unfaithful in Democracy and Politics. Critical News, 31st August 2014

Posted by Business in Ghana on August 31, 2014

Sydney Casely-Hayford, sydney@bizghana.com

Little known events shape your life in diverse ways and I discovered some deeply centered emotional nemesis within me I never knew I harbored. All the way from the seventies.

For five years in my life I worked as a laboratory assistant at the Veterinary Services in Labadi. Formative years when I was on the path to becoming a doctor; a profession I later abandoned as I bogged down with teenage matters and sports, my attention drawn from loftier existentialist matters to simple animal behavior.

I remember distinctly the day my half-Alsatian puppy was run over and I had the first test to put it down and alleviate the pain of suffering from two broken front legs and a partially crushed head.

For hours I struggled with the decision, not realizing I was prolonging the pain because I was vacillating and did not have the courage to let a faithful and dedicated pet pass on peacefully.

I had watched many movies of similar situations and never thought I would not have the courage.

Lady had been with me since she was a puppy and followed me dedicatedly everywhere, at some point constantly outside my bedroom door waiting for morning treats and a new exciting catapult day, when she would run around with me in Kanda Estates picking up birds, agama lizards, anything but toads, which she found out one day were a bitter taste and unworthy of such single-minded devastation from my catapult. Read the rest of this entry »

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Unfaithful in Democracy and Politics. Critical News, 31st August 2014

Posted by Business in Ghana on August 31, 2014

Sydney Casely-Hayford, sydney@bizghana.com

Little known events shape your life in diverse ways and I discovered some deeply centered emotional nemesis within me I never knew I harbored. All the way from the seventies.

For five years in my life I worked as a laboratory assistant at the Veterinary Services in Labadi. Formative years when I was on the path to becoming a doctor; a profession I later abandoned as I bogged down with teenage matters and sports, my attention drawn from loftier existentialist matters to simple animal behavior.

I remember distinctly the day my half-Alsatian puppy was run over and I had the first test to put it down and alleviate the pain of suffering from two broken front legs and a partially crushed head.

For hours I struggled with the decision, not realizing I was prolonging the pain because I was vacillating and did not have the courage to let a faithful and dedicated pet pass on peacefully.

I had watched many movies of similar situations and never thought I would not have the courage.

Lady had been with me since she was a puppy and followed me dedicatedly everywhere, at some point constantly outside my bedroom door waiting for morning treats and a new exciting catapult day, when she would run around with me in Kanda Estates picking up birds, agama lizards, anything but toads, which she found out one day were a bitter taste and unworthy of such single-minded devastation from my catapult. Read the rest of this entry »

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Fitch Warns Ghana On New Eurobond

Posted by Business in Ghana on June 10, 2014

By Sudip Roy, FT

Fitch has warned that Ghana will find it “increasingly challenging” to sell its new Eurobond due to mounting fiscal and external vulnerabilities.

The West African nation is rumoured to have hired Barclays, Deutsche Bank and Standard Chartered for an up to US$1.5bn Eurobond, though the timing of the deal has yet to be determined.

A successful deal may ease immediate external funding pressures. But even though Ghana, as with other emerging markets, has seen its outstanding debt rally significantly over the past few weeks with its 2023 notes trading at just under 8% compared with more than 9% at the end of April, Fitch reckons the cost of any bond “would likely be high.”

The ratings agency has highlighted the country’s vulnerabilities in a new note published on Monday, especially the central bank’s role in funding Ghana’s budget deficit in the first quarter.

“Printing money to finance the deficit will aggravate already high inflation (14.7% in April 2014) and contribute to further cedi weakness,” said the note, adding the currency has fallen 21% since the start of the year. Read the rest of this entry »

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Africa Attractiveness Survey: Africa’s Share of Global FDI Increases Over the Last Five Years

Posted by Business in Ghana on May 6, 2013

Global share of FDI up but project numbers down in 2012

African GDP expected to be 4% in 2013 and 4.6% in 2014

JOHANNESBURG, South-Africa, May 6, 2013/ Africa’s share of global foreign direct investment (FDI) has grown over the past five years highlighting the growing interest from foreign investors, according to Ernst & Young’s third Africa Attractiveness Survey (http://www.ey.com/za), released today.

The report combines an analysis of international investment into Africa over the past five years with a 2013 survey of over 500 global business leaders about their views on the potential of the African market. The latest data shows that despite a fall in project numbers from 867 in 2011 to 764 in 2012 — in line with the global trend — project numbers are still significantly higher than anything that preceded the peak of 2008. The continent’s global share of FDI has also grown from 3.2% in 2007 to 5.6% in 2012.

Mark Otty, Ernst & Young’s EMEIA Managing Partner comments, “A process of democratization that has taken root across much of the continent; ongoing improvements to the business environment; exponential growth in trade and investment and substantial improvements in the quality of human life have provided a platform for the economic growth that a large number of African economies have experienced over the past decade.” Read the rest of this entry »

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Africa is Hooked on Growth

Posted by Business in Ghana on January 2, 2013

By Sebastian Mallaby

A few years into sub-Saharan Africa’s renaissance, there were the natural doubts. Economists had competed for so long to explain the region’s growth tragedy that good news was a shock. But now, more than a decade into the revival, the good news has grown better. The lesson is that sound policies can make a difference even in the least promising of settings. Defeatists everywhere, cheer up.

Even before the recent flurry of encouragement, Africa’s turnround was breathtaking. Between 1980 and 2000, the continent had experienced negative economic development: output per person had fallen by a 10th in purchasing power terms. Then, just as the Aids pandemic was thought to represent the final straw for Africa, its fortunes changed dramatically. According to the World Bank’s development indicators, gross domestic product per person has risen every year since 2000, delivering a cumulative gain of more than a third. Read the rest of this entry »

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CEPAs Projected GDP Growth Rates for 2012

Posted by Business in Ghana on October 9, 2012

By http://www.cepa.org

In recent times the Ghana Statistical Service (GSS) has been processing and publishing more data on the economy than it was doing previously. More generally, rapid technological advancements, changes in data gathering, information processing and methodology have been numerous, especially with the rebasing of the national accounts. Commendable though these efforts have been, the rapid changes have more often than not led to frequent revisions of the data and sometimes withdrawal of published data on account of errors and omissions, which create undue embarrassment to the Service impacting negatively on its credibility. Read the rest of this entry »

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Election Year Excesses, Cedi Depreciation, and Inflation The Current Experience

Posted by Business in Ghana on June 16, 2012

Source: Center for Policy Analysis, Ghana.  http://www.cepa.org.gh

Every election year in the Fourth Republic, especially the hotly contested ones, has been associated with excesses (in spending and behavior), rapid depreciation of the cedi, and accelerating inflation. The most recent to such years is election year 2000 when the excesses led to an exchange rate depreciation (number of cedis per US dollar) 0f 100 percent from 3,500 old cedis at the beginning of the year to 7,000 at the end of the year.

The next after that was election year 2008 when election year excesses led to a fall in the value of the cedi from 1.0152 cedis / dollar in June 2008 to 1.4524 cedis / dollar in June 2009  a year-on-year depreciation of about 43 percent which was halted only by the stabilization program agreed with the IMF. Read the rest of this entry »

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State of the Nation. Critical News, 13th May 2012

Posted by Business in Ghana on May 13, 2012

Sydney Casely-Hayford, Sydney@bizghana.com

Mahamadu Bawumia’s “state of the nation’s economy” speech excited the NDC to no end.  A kink in the NDC campaign armour, seems to have thrown the ruling Government into a complete tizz.  After Deputy Finance Minister Fiifi Kwetey and Deputy Information Minister Samuel Ablakwa did their discrediting tour last week, this week’s salvo came from two Government Institutions.  The Ghana Statistical Service because they felt slighted by Bawumia, held a press conference to disparage his views and label him a dangerous academic, and the Ministry of Finance and Economic Planning took out a double page advertisement in the Daily Graphic to “set the records straight”. Read the rest of this entry »

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The Composite Index of Economic Activity is Improving, So What, says the Informal Sector

Posted by Business in Ghana on October 30, 2011

By Sydney Casely-Hayford, Sydney@bizghana.com

The Bank of Ghana (BoG) uses an aggregate of indexes, grouped and called the Composite Index of Economic Activity (CIEA) to guide the Bank’s Monetary Policy Committee in its bi-monthly report and policy interest rate setting.

The CIEA gets little mention in the financial press compared to its more well-known counterpart the Gross Domestic Product (GDP).  The GDP is produced by the Ghana Statistical Service (GSS) and the CIEA is a BoG product.  However, according to the Monetary Policy Analysis Division of the BoG, the CIEA tracks the GDP very closely and is taken by the BoG as a very good indicator of business confidence.

Once a month the Monetary Policy Analysis Division (MPAD) of the BoG undertakes a real sector survey of the economy.

Let me explain the CIEA a little more. Read the rest of this entry »

Posted in Financial Services, Sydney Casely-Hayford | Tagged: , , , , , , , , , | 3 Comments »

So why all the Fuss about Ghana’s 2011 Budget?

Posted by Business in Ghana on November 28, 2010

Courtesy of IMANI (www.imanighana.org) and AfricanLiberty.org

Ghana’s latest budget has been met with uproar in some quarters.

There is no dismissing or diminishing the fact that under trying circumstances the ruling government has been working hard to balance its books and stabilise the economy.  There may be some disputes over the precision of measurements and accounting conventions, but the evidence does point to some clear successes on the macroeconomic front.

The strengthening cedi has of course led to a significant boost in imports, but in real terms (accounting for inflation) the increase is in line with recent trends in the current account, and is thus not exactly scary (which is what you would expect if the currency had been artificially overvalued). Read the rest of this entry »

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