Lowest since Q1 2021, Ghana’s economic growth slows to 2.9% in Q3 2022

Published

1 year ago

December 22, 2022

In its worst performance since the first quarter of 2021, Ghana’s economic growth slowed to 2.9% year-on-year in the third quarter this year compared with 6.6% in the same period last year.

The statistics service said on Wednesday the third quarter growth figure was the lowest since the economy expanded by 3.1% in the first quarter of 2021.

“This is the least we’ve grown since the economy began to bounce back from the COVID-19 pandemic,” Annim told reporters.

Annim added that Ghana revised growth for the first quarter of this year to 3% and to 4.7% for the second quarter, down from 3.3% and 4.8% respectively.

Ghana’s currency, Cedi is currently rated the world’s worst-performing in 2022 as investors continued to squeeze foreign capital into the West African country.

Ghana recently ordered mining companies to pay the Bank of Ghana with refined gold at their refineries from Jan. 1, 2023.

The government has negotiated a $3-billion staff-level agreement with the International Monetary Fund (IMF). Its approval is conditional on comprehensive debt restructuring.

Nigeria wants $2.25 billion World Bank loan

Published

14 hours ago

April 23, 2024

Ifeoluwa Dada

Nigeria’s Finance Minister, Wale Edun, has revealed that the country is seeking up to $2.25 billion in World Bank loans and expects the bank’s board to approve the request in June.

The move was announced in a statement following the International Monetary Fund/World Bank spring meetings in Washington, D.C as the country also aims to issue diaspora bonds later this year to attract much-need foreign exchange into the country.

The World Bank loans would include $1.5 billion for development policy and $750 million for program-for-results, the statement said. It also said that the bank would meet in June to decide whether to approve the plan in its entirety.

The multilateral body is yet to comment on the revelation at press time.

Nigeria one of Africa’s biggest oil producers has struggled lately mainly over industrial-scale crude oil theft, and troubles getting foreign currency, which caused its naira currency to drop to all-time lows against the U.S. dollar. It has since recovered, though.

Already, the country is on record levels of debt, high unemployment, and large amounts of money from the central bank. However, Edun has insisted that the government had cut the money it borrowed from the central bank in half.

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Ghana’s finance minister anticipates debt restructuring MoU with lenders

Published

1 day ago

April 22, 2024

Ifeoluwa Dada

Ghana’s Finance Minister has announced that the country’s two main creditors will send him a draft Memorandum of Understanding (MoU) on a restructuring deal in May, signifying a major progress in the country’s debt reform.

Once the MoU is signed, it will make public the deal that was made in January to restructure $5.4 billion in loans with its official creditors, such as China and France.

The restructuring is a big step toward Ghana getting rid of its debt as it works to get out of the worst economic crisis in a generation. It should also allow the country to get more money from its $3 billion IMF program.

Mohammed Amin Adam said he was sure the International Monetary Fund (IMF) and the World Bank would work together at the Spring Meetings in Washington, D.C. In June, the Monetary Fund’s executive board will agree to review its staff-level deal.

From 2023 to 2028, Ghana’s national debt to gross domestic product level was supposed to go down by 15%. This guess says that the number will have gone down every year for six years, ending at 69.96% in 2028.

Ghana didn’t pay back most of its foreign loans in December 2022 because it became too expensive to do so. But now it needs to work out a deal with private holders of about $13 billion in foreign bonds. It has also changed most of its domestic debt.