Bussiness
Just In: IMF Approves $3 Billion bailout for Ghana to help revive economy
The International Monetary Fund (IMF) has approved Ghana’s request for a $3 billion bailout to support the debt-ridden West African nation’s economic recovery, according to people familiar with the matter.
The IMF’s Executive Board met to discuss approval for the funding on Wednesday and is scheduled to announce its decision later in the day. The IMF’s press office declined to comment.
Ghana’s cedi has become the world’s best performer against the dollar over the past six months as investors bet the nation was on the brink of securing the IMF funding. The currency traded 1.7% stronger at 10.8625 per dollar by 4:12 p.m. in Accra, Ghana’s capital. The country’s eurobond maturing in 2032 rose 0.5 cents to 40.2 cents on the dollar.
Ghana took tough economic decisions, including increasing taxes and imposing losses on domestic investors, to secure the package from the IMF. The fund’s backing came after the country last week clinched financial assurances from a bilateral-creditors group that’s co-chaired by China and France.
The three-year loan will help replenish Ghana’s foreign-exchange reserves, which have dropped almost 50% from a peak in August 2021 as the central bank used them to defend the cedi.
Fund Disbursements
Minister of State for Finance Mohammed Amin Adam said earlier this week the government expects to receive an initial disbursement of $600 million this week, and a further disbursement of the same amount in November. The remainder is likely to be disbursed in equal portions of $350 million every six months, subject to IMF reviews, he said.
The government is also in talks for an additional $900 million of budget support from the World Bank over a three-year period, even as it plans to start negotiations with eurobond holders to restructure $13 billion of debt owed to private investors.
Ghana is restructuring its debt under the Group of 20’s so-called Common Framework as part of measures to secure the IMF program. The mechanism seeks to improve coordination between the traditional Paris Club of sovereign creditors and new ones like China, now the biggest lender to emerging nations. Zambia and Ethiopia are also using the framework to try and revamp their liabilities after their economies were ravaged by the effects of the COVID pandemic and the Russian-Ukraine war.
Source: Bloomberg
Bussiness
Charterhouse announces the Business Elevate Series with launch of ‘The Gastro Feastival’
Charterhouse, Ghana’s leading event management and audiovisual production company, is marking its 25th anniversary of delivering top-tier events with the introduction of an exciting new initiative: The Business Elevate Series.
This innovative series is designed to shine a spotlight on key economic sectors through a series of dynamic B2B and B2C events, including industry conferences, seminars, and exhibitions.
Kicking off the series is The Gastro Feastival, a groundbreaking annual food industry festival that will showcase Ghana’s rich and diverse food ecosystem and agribusinesses from production to consumption.
The launch event will take place on Friday, March 7, 2025, from 4:00 PM to 6:00 PM at the Grand Arena (Accra International Conference Centre).
This landmark event will bring together food industry stakeholders, enthusiasts, experts, and organizations to highlight the food industry’s critical role in Ghana’s socio-economic development and culture.
It will also promote food security, digital innovation, women’s empowerment, youth employment in agribusiness, and sustainable practices.
The Business Elevate Series is a game-changing initiative designed to foster growth and transformation across multiple sectors. With Charterhouse’s deep expertise in organizing impactful meetings, the series aims to unlock investment opportunities, drive innovation, and catalyze social and economic change.
The Gastro Feastival will address six major pillars that drive industry transformation: Investment Opportunities; Job Creation; Innovation, Technology, and Digitization; Youth Involvement (entrepreneurship and career opportunities); Women’s Involvement; Environmental and Social Governance (ESG); Export Opportunities
The event will also establish a Resource Bank, spotlighting key growth opportunities and ensuring the effective allocation of resources to transform Ghana’s food industry.
The Gastro Feastival is a Charterhouse initiative, with Kosmos Innovation Centre as the technical partner.
Bussiness
Ghana’s GDP shows economy is fast recovering despite DDEP – Finance Ministry
Ghana’s Gross Domestic Product (GDP) indicates a rapid economic recovery despite global challenges and ongoing debt restructuring, according to the Ministry of Finance (MoF).
The Ministry in a statement today indicated that latest data from the Ghana Statistical Service (GSS), cumulative economic growth for the second quarter (Q2) of 2024 reached 6.9%, a notable increase from the 4.7% recorded in the first quarter of 2024.
The MoF statement further noted that, “The economy’s robust recovery is in response to the macroeconomic stability and growth interventions that government is pursuing under our IMF-supported Post Covid-19 Programme for Economic Growth (PC-PEG).”
According to them, the overall real GDP growth for the first half of 2024 rebounded strongly, with year-on-year GDP growth averaging 5.8% for the period, significantly higher than the 2.9% recorded in the same period in 2023.
By Edem Mensah-Tsotorme
Read full statement below
