VenturesNow

Ghana considering $50 bln century bond, president says

Published

5 years ago

September 3, 2018

Ghana may issue a 100-year $50 billion bond as part of a long-term industrialisation plan that aims to wean the West African country off aid, its president said during a meeting with Chinese President Xi Jinping.

The government, in power since January 2017, has said it needs about $2 billion a year for infrastructure spending. Ghana, which exports cocoa, gold and oil, is in its final year of a $918 million IMF credit programme.

President Nana Akufo-Addo said during a meeting with Xi in Beijing on Sunday:

“The Ministry of Finance and economists in Ghana are looking at floating a $50 billion century bond. This will provide us with the resources to finance our infrastructural and industrial development.”

The announcement drew scepticism in financial markets, with analysts expressing doubts over Ghana’s capacity to undertake such a transaction.

“While the estimate of Ghana’s likely infrastructure investment need over the next century may well total more than $50 billion, Ghana’s ability to raise anything like $50 billion in a single issue is doubtful, given the country’s current financing capacity,” said Standard-Chartered Bank chief economist Razia Khan.

Deputy Finance Finister Charles Adu Boahen told Reuters discussions on the bond were at an early stage and that the plan was to raise the amount over a period and possibly in different currencies based on investor appetite and planned uses.

Akufo-Addo’s delegation also finalised a deal with Sinohydro Corp Ltd to provide $2 billion for government road and railway projects in exchange for refined Ghanaian bauxite, Nkrumah said.

The two countries also finalised a deal between China Harbour Engineering Company and Africa-focused private equity firm Helios on building a $350 million liquefied natural gas terminal in Ghana’s eastern Tema port.

Click to comment

VenturesNow

Nigeria’s central bank governor, Godwin Emefiele suspended by President Tinubu

Published

13 hours ago

June 9, 2023

Ifeoluwa Dada

Nigerian president, Bola Tinubu has suspended the country’s central bank governor, Godwin Emefiele.

The office of the Secretary to the Government of the Federation announced the suspension of the Central Bank of Nigeria (CBN) head on Friday evening.

The director of information at the SGF office, Willie Bassey, in a statement, said the suspension was with immediate effect.

The CBN under Emefiele announced new designs of the N200, N500, and N1,000 notes in December. The implementation of the policy was however controversial as it launched an era of cash scarcity which some observers say was targeted at then ruling party’s candidate, Bola Tinubu, and some believe limited his chances.

Tinubu has signalled going in a different direction. During his inauguration speech, he pledged to pursue unification of the exchange rate windows and backed ease of repatriation of funds for foreign investors, policies that have not been favoured by the CBN under Emefiele.

Former president Muhammadu Buhari reappointed Emiefele for a second and final term of five years in 2019. He was appointed by former President Goodluck Jonathan in February 2014, hours after he announced the suspension of his predecessor, Sanusi Lamido.

He was the managing director of top Nigerian bank, Zenith Bank before his appointment .

VenturesNow

Ghana records 32% increase in gold production in 2022

Published

15 hours ago

June 9, 2023

Ifeoluwa Dada

West African country, Ghana has returned to top of gold production on the continent after displacing South Africa following a 32% increase in 2022.

According to the president of the mines chamber, gold output rose to 3.7 million ounces in 2022 from 2.8 million ounces the previous year, as a result of growth in the output of both large and small-scale sectors.

Joshua Mortoti, while addressing members of the Ghana Chamber of Mines at an annual general meeting revealed that “The large-scale gold sub-sector recorded its highest output in the country’s history in 2022.”

He further revealed that the expansion of production at existing mines facilitated the large-scale sector’s gold output up by 13% to 3.1 million ounces last year from 2.7 million ounces in 2021.

Over 77,620 ounces of gold were sold in 2022 under the Domestic Gold Purchase Programme, a scheme launched by the Bank of Ghana to boost reserves.

Mining is a major economic activity in Ghana and a key contributor to the Ghanaian economy. Gold mining accounted for 48.4% of gross merchandise exports in 2020.