- COCOBOD: In what is viewed as a major shift in a 32-year long tradition of outside financing, Ghana’s cocoa regulator, COCOBOD, announced that it will self-finance the purchase of cocoa beans. It aims to save $150 million in interest payments and other expenses. The syndicated loan has been a major source of foreign currency inflow, and it remains to be seen what this decision may mean for exchange rate volatility.
- GREEN ENERGY: Africa’s single largest rooftop solar plant was commissioned in Ghana at the Tema Free Zone Enclave. The IFC funded project covers an area of 1 million square meters and generates a total of 16.8 megawatts of electricity. The production of electricity from this solar plant will help create sustainable green jobs and help the country meet its nationally determined contributions under the Paris Climate Agreement. Helios Solar Energy, the owners, and operators of the solar plant, aim to produce 1000 megawatts of solar energy by 2030.
- EXPORT BAN: Ghana’s Ministry of Agriculture has imposed an immediate ban on all key grain exports including soy, corn, and rice. According to the ministry, the ban has been attributed to erratic rainfall patterns over the last two months especially in northern parts of the country. The ministry emphasized that the ban is to avert food shortage in the country, but this has caused consternation amongst various players in the agricultural value chain. It is estimated that a total of 1.86 million hectares of crop growing land is at risk and farmers growing produce on half that area have already been impacted by the adverse weather conditions.
- MACROECONOMIC INDICATORS: In line with a continent-wide slump, Ghana experienced a 10% decline in foreign direct investment in 2023 to $1.32 billion. Declines in various sectors including manufacturing, oil and gas and services accounted for this dip. Ghana’s top three FDI sources for the period were China, Turkey, and India. Ghana’s economy however grew by 4.7% year-on-year in the first quarter of 2024 and the nation’s GDP growth is projected to rise to 3.4% in 2024 and 4.3% in 2025 according to the African Development Bank. Inflation is also expected to reduce to 20.9% in 2024 and reduce further to 11.1% in 2025.
Student at University of Professional Studies, Accra Student at IDL KNUST Adenta
1moVery informative