By Eugene Davis
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The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has held bilateral engagements with two important development partners on the country’s economic recovery and stability.
The Central Bank Governor engaged representatives from the European Bank for Reconstruction and Development and the World Gold Council, on Tuesday, October 22.
This was on the sidelines of the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG), in Washington, DC (USA).
The Central Bank Governor and his team held closed-door discussions with Dr Heike Harmgart, Managing Director, Sub-Saharan Africa, EU Bank for Reconstruction and Development.
Present at the meeting were, Burkard Kubel-Sorger, Chief Finance O cer (CFO)/Vice President and Artur Radziwill, Director, Country Economics, Strategy and Policy, both of the EU Bank for Reconstruction and Development.
The Governor also had a meeting with the World Gold Council, involving Kurtulus Taskale Diamondopoulos,
Director of Central Banks and Public Policy, and Shaokai Fan, Head of Asia-Paci c and Global Head of Central Banks.
The meeting with the EU Bank’s delegation highlighted working collaborations for Ghana’s economic sustainability with mutual bene t to the development partner.
Dr Harmgart of the EU Bank for Reconstruction and Development noted that the engagement with the Central Bank was borne out of their interest in the operations of BoG.
It was to enable the team to have a better appreciation of the important role of the Bank of Ghana in the country’s macroeconomic management, particularly monetary policy.
He lauded Ghana for the successful completion of its debt restructuring as part of the ongoing US$3 billion Extended Credit Facility (ECF) programme with the IMF, describing the development as a learning curve for other countries.
The Governor spoke about the sacri ces of Ghanaians in helping the government navigate the hard times in securing the IMF loan and completing the debt restructuring programme.
That, he said had been pivotal
in the recent economic recovery from the crisis since the onset of the COVID-19 pandemic to the current stability.
The meeting with the World Gold Council, a non-governmental organisation (NGO) committed to enhancing supply-chain transparency in the global gold market, centred on standardisation.
Kurtulus Taskale Diamondopoulos explained the work of the Council, including the provision of standards, shaping policy and setting the principles for a perpetual and sustainable gold market.
On his part, Dr Addison called for a working relationship that would propel certi cation of re nery in Ghana to further improve the gold value chain.
Ghana, Africa’s largest gold producer and the sixth in the world mined 4.03 ounces of the global commodity in 2023, which over the past 12 months saw a price surge from US$1,947 to US$2,715.
Like seen recently in Ghana, gold is used as a store of value to hedge against in ation and currency uctuations, serves as a Central Bank reserve, and is also used as a popular choice for jewellery, coins and other ornaments.
At this year’s MTN Business Executive Breakfast Series, industry leaders highlighted the urgent need for strategic interventions to bridge the talent gap and prepare the country’s workforce for the demands of the future.
The panel, composed of top executives across various sectors, discussed key areas requiring attention, emphasizing the importance of a structured approach to human capital development.
Key focus areas for bridging the talent gap outlined entail; Tracking expenditure, understanding where funds are allocated to reinvest in high-impact areas like research and innovation.
Smart Workspaces: Establishing vocational and technical training centers to equip the workforce with relevant skills.
R&D Investment: Increasing funding for research, particularly in renewable energy and sustainable agriculture, to drive innovation.
Technology Deployment: Applying advanced technologies across industries to boost productivity.
Ecosystem Development: Building a supportive ecosystem for innovation and economic growth.
Functional Systems: Ensuring e cient systems for long-term sustainability.
Leadership and Ethics: Promoting ethical leadership for better decision-making and accountability.
Role of Spending and Investment in Critical Sectors
Mr. Abdallah Ibrahim, Ag. Chief Human Resource O cer at MTN Ghana, stressed the importance of understanding how nancial resources are being utilized.
“By diagnosing how funds are allocated, we can reinvest in areas that truly matter,” Ibrahim said. “Critical sectors like research—particularly in renewable energy and drought-resistant crops—should be prioritized. Moreover, exploring technological innovations can help generate jobs.”
Chris Wul -Caesar, Managing Director of Unilever Ghana, emphasized the need for a clear national vision to support the millions of graduates entering the workforce each year.
“We need to examine our economy and shift away from dependence on extractive industries,” Wul -Caesar explained. “Where will the world be in the next ve years? What are we doing with the talent at our disposal? We must develop a clear policy with timelines, ensuring that within four years, we achieve speci c goals. Accountability is key—we need to assess and allocate resources e ectively, ensuring the required investment is made.”
Esi E. Ansah, Executive Director at the Center for Leadership, Ashesi University, highlighted the importance of data-driven research to inform decision-making in critical sectors such as healthcare and business.
"Leading nations invest heavily in research, empowering academics and industry to innovate and share knowledge," Ansah noted. "For every decision, there must be data that provides clarity and direction. Research lays the foundation for informed decision-making in all areas."
Ms.Ansah also stressed the importance of ethical leadership, which
By Eugene Davis
she described as vital for ensuring progress in various sectors, including agriculture, technology, and AI.
“While strategies are important, ethical leadership is critical,” she said. “If we lack leaders making the right decisions, progress stalls. National ethical leadership requires holding public servants, schools, and hospitals accountable. Building an ethical foundation starts at the top and trickles down. By fostering this commitment, we can drive progress across all sectors.”
The panelists agreed that by focusing on these strategic areas, the country can equip its workforce to meet future challenges and ensure sustainable development across industries.
Small and medium-sized enterprises, especially those in the elds of Science, Technology, Innovation and Research (STIR), have been advised to turn to cheaper and long-term funding opportunities such as venture capitals and angel investors to sustain and expand their operations instead of relying on loans from commercial banks.
This was the unanimous call from speakers at a virtual conference aimed at linking innovation startups and researchers to alternative funding sources for their enterprises and research outcomes organized by Heritors Labs, in collaboration with its funding partner, the RISA Fund.
The virtual conference which formed part of activities of the Women in Innovation and Research Conclave (WIRC), deepened participants’ insight and understanding of the workings of and funding mechanisms of venture capitalists, angel investors, crowd-funding and seed funders.
The Chief Executive O cer of Heritors Labs Limited, Derrydean Dadzie, indicated in his brief remarks: “Women innovators and researchers are often disenfranchised from accessing funds for their research and innovations, and in most cases, they do not have the opportunities that are available on the market to enable them to thrive in the ecosystem.”
To him, the online conference was to encourage partnerships, collaborations and investments in commercially viable innovations and research outcomes across the SME and startups ecosystem.
Programme Lead at Heritors Labs, Barbara Aidoo, delivered a compelling message at the Meet the Money Pathway webinar, a core aspect of the Women in Innovation and Research Conclave (WIRC).
“Women innovators frequently encounter barriers when it comes to securing funds. Our aim with Meet the Money Pathway is to explore alternative nance models—like crowdfunding and angel investment, and partnerships with institutions like Impact Investing Ghana and Calbank Ghana—that o er women-led ventures the support they need,” said Barbara.
One of the speakers, Mr. Daniel Appiah, Head of Commercial
Banking for Calbank Ghana, explained that banks prefer to disburse their limited funds to established businesses compared to those in the SME and startup bracket due to identi able risks in the sector.
“The debt exchange programme has wiped out a substantial portion of banks capital, and they are now looking at where the little money left could be deployed to get immediate returns to shore up their capital, which is challenging for SMEs and startups,” he noted.
However, he stressed that most banks have deployed solutions that enable them to support budding enterprises right from the start, including the o ering of technical support in the form of nancial education to groom such businesses to be ready for funding.
“Banks know the exact funding sources for SMEs and startups as well as the peculiar interests of these investors. It’s therefore about how we can prepare such businesses to be ready and quali-
ed for these funds, which are largely available, and that’s what most banks are doing now. At Calbank, we’re providing such assistance through our Calbank SMEs Academy,” he explained.
Another speaker, Ms. Justina Mensah, a programme o cer at Impact Investing Ghana, emphasized the lack of speci c funding for researchers in the country at the moment but added that with the right positioning, innovators and researchers could bene t from crowdfunding, angel investors, and other long-term capital for their businesses.
“The reality is that in Ghana at the moment, there is no speci c funding vehicle for research but it’s not impossible. Angel investing is one great area that startups can look to; we also have venture capitalists and crowdfunding, which have become options for startups and SMEs, especially those in research and innovation,” she noted. She added: “But the caveat is that the research or innovation must be viable and of value to these
investors. This means that researchers and innovation startups have to be well-positioned to secure funding, including examining the funding positions and requirements of these investors.
On her part, Ms. Eunice Asantewaa Ankomah, a certi ed digital nancial services consultant, encouraged participants to leverage digital tools to build business records to attract investment from the banks and other potential investors.
“There are several digital technologies that can be used for bookkeeping, which makes it easier for startups and SMEs to present attractive nancial records that would entice banks to invest in their business,” she advised.
The nancial consultant further encouraged innovators, researchers and tech startups to forge strong partnerships with banks that can track the growth of the business based on their nancial transactions to enable them secure loans when the need arises.
Government at the just ended treasury bill auc�on announced a set target of GH¢4,035.00 million across the 91, 182 and 364-day bills. However, total bids amoun�ng to GH¢4,195.32 million was received and accepted represen�ng a 3.97% oversubscrip�on of GH¢160.32 million
Following the total bid oversubscrip�on, the week-on-week yields also soared further, at least more significantly than the previous week’s increase , witnessing an upward reac�on of 32.62bps, 12.63bps a nd 15.57bps increases across the 91-, 182- and 364-day bills respec�vely.
T-bills: Government to borrow GH¢3,980.00 Million this week across the 91, 182 and 364 day bills to cater for maturi�es totaling circa GH¢3,540.00 Million
Shares: MTN Ghana Sha res c on�nue to dominate GSE equity market trades despite a no price change to close the week at GHS2.15 per share. GLD shares on the other ha nd is the bigge st gainer with a price increa se of G H¢27.81 to close at GH¢423.81 per share
Mutual Fund: NTHC Horizon Fund reports a Year-To-Date (YTD) performance of 32.18% and a Net Asset Value (NAV) growth of 40.44% for the week ending O ctober 18, 2024
Economy
Cedi now selling at G H¢16.55 to a dollar at major forex bureaus
Ghana’s fiscal deficit to GDP to end 2024 at 4.2% - World Bank.
Access Bank (Ghana) Plc has achieved a remarkable milestone at this year’s Chartered Institute of Marketing Ghana (CIMG) Customer Satisfaction Index Awards, sweeping three prestigious awards.
The awards highlight the Bank’s unwavering commitment to delivering top-notch customer experiences.
The event which took place at the Coconut Grove Regency Hotel in Accra, celebrated outstanding service delivery across the banking industry.
At this year’s edition of the awards, Access Bank (Ghana) Plc was honoured as the Best Bank in Customer Satisfaction for Business Banking. This recognition reinforces Access Bank’s leadership in business banking, demonstrating the bank’s exceptional understanding of corporate clients and their needs. With its focus on providing tailored nancial solutions and maintaining a robust support system for businesses, Access Bank has continued to excel in this highly competitive area.
The bank was also awarded a ve-star rating for Service Quality in Consumer Banking, an achievement that underscores its dedication to providing seamless and personalized banking experiences for individual customers. Access Bank’s innovative digital platforms and customer-centric products have consistently positioned it as a top choice for consumers seeking a modern, reliable, and responsive banking experience.
In addition to these wins, Access Bank emerged as the second runner-up in Service Quality for Business Banking. This accomplishment further highlights the bank’s exceptional performance in serving business customers, focusing on operational e ciency and a deep understanding of business dynamics.
Speaking on the achievement, the Executive Director of Retail, Pearl
Nkrumah, expressed gratitude to the bank’s customers for their continued loyalty and trust.
“These recognitions from the CIMG are a clear re ection of the dedication, commitment, and tireless e orts of our entire Access Bank team. We are grateful to our customers for allowing us to serve them and are inspired to continue exceeding their expectations,” she said. She further emphasized the bank’s commitment to continuously enhancing customer experiences: “As a bank, we believe in pushing the boundaries of excellence in all we do. This motivates us to continually innovate and provide solutions that simplify banking and improve the lives of our customers.”
In addition, the Head of Customer Experience Management, Yaa Amankwaa Pokoo, highlighted the importance of consistently improving the bank’s custom-
er-centric strategy. She said “Our approach has always been to put the customer rst in every interaction and these awards are proof we are delivering on our promise. We remain focused on providing accessible, convenient and personalized services that align with the evolving needs of customers.”
Access Bank Ghana has built a strong reputation for its innovative approach to banking, setting benchmarks for service excellence and customer satisfaction. These latest recognitions follow a series of awards in previous years, including accolades for sustainable banking, digital innovation, and nancial inclusion.
With this signi cant achievement, Access Bank Ghana remains focused on driving innovation and maintaining its momentum in delivering superior banking expe-
riences. The bank remains committed to leveraging its global expertise and local insight to o er unmatched value to its diverse clientele, including individuals, SMEs, and large corporations. Access Bank (Ghana) Plc, over the past 15 years, has demonstrated an unwavering commitment to understanding its customers' needs, consistently delivering exceptional service, and empowering individuals and businesses alike. Since its inception, Access Bank (Ghana) Plc has been at the forefront of the nancial sector, providing a wide range of innovative banking solutions tailored to meet the unique needs of its customers.
With a vision to be the world’s most respected African bank, Access Bank continues to build long-lasting partnerships that drive sustainable growth and economic transformation.
From L-R: Kwabena Agyekum (CEO, CIMG), Akosua Biama Aboagye (Chief Finance Officer, Access Bank), and Oluwaseun David-Akindele (Head, Corporate Communications & Brands Management, Access Bank)
The Africa Centre for Energy Policy (ACEP) has clari ed its stance on the Spring eld A na-1x Appraisal Programme, stressing that its position is driven by national interest rather than any hidden agenda. ACEP, guided by its mandate to defend public interest and promote sound policies in the energy and extractive sectors, has closely followed developments in Ghana's petroleum upstream sector.
In a press statement signed by Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, the organization emphasized that its concerns about Spring eld re ect the need to safeguard national interests, which have been undermined by governance failures. ACEP highlighted a growing perception that private interests are being prioritized over the country's long-term investment and development goals in the upstream sector. As the world moves towards decarbonization, ACEP stressed that ensuring a fair, transparent, and well-regulated oil and gas industry is more important than ever.
ACEP continues to advocate for policies that attract investment and restore con dence in Ghana’s petroleum sector. The organiza tion warned that political interfer ence, misgovernance, and regula tory failures are jeopardizing the sector's potential, leaving Ghana vulnerable in an era where strand ed assets pose signi cant risks. To avoid further erosion of the sector's value, ACEP called for the government to adopt transparent, investor-friendly policies aligned with global energy transition trends.
The statement also addressed concerns over declining oil production and reduced explora tion investment in recent years, which have raised alarms about the future of Ghana’s petroleum industry. ACEP has been actively engaged in public discourse, advocating for more e ective policy directions through media engagements and research.
Speaking at the International Monetary Fund (IMF) and World Bank Annual Meetings, ACEP's Executive Director further outlined key challenges facing the oil and gas sector. He noted that optimistic oil production fore casts, which underpinned major
By Eugene Davis
borrowings, failed to materialize, contributing to Ghana's current scal struggles. He also highlighted ine ective policies that have diminished investor interest and litigation that has harmed the sector’s reputation, particularly following Ghana's unfavorable arbitration outcome in 2024.
On the ongoing dispute between Eni and Spring eld over the A na discovery and Sankofa, ACEP raised concerns about Springeld’s appraisal programme. According to ACEP, the data Spring eld presented signi cantly di ered from government data used to determine Tract Participation (TP) percentages. These discrepancies, particularly regarding the Oil Water Contact (OWC) estimate, led to questionable unitization directives that wasted valuable time.
ACEP also expressed concerns about the cost-e ectiveness and timing of Spring eld’s proposal to re-enter the A na well at an estimated cost of $50 million. They argued that this additional cost could have been avoided if reservoir ow tests had been conducted during the original
drilling campaign. ACEP pointed to regulatory failures by the Petroleum Commission and Ministry of Energy, which have led to unnecessary nancial burdens for Ghana.
Finally, ACEP argued that collaboration between Spring eld and Eni should have been prioritized to con rm connectivity between the A na and Sankofa elds. ACEP believes that a cooperative approach would have improved the credibility of the unitization process, avoided disputes, and saved the country signi cant time and resources.
ACEP remains committed to advocating for sound governance and transparent policies to secure the future of Ghana's petroleum sector.
Below is the full statement from ACEP
‘Clarifying ACEP’s Position on Spring eld’s A na-1x Appraisal Programme’ Washington, DC, October 24, 2024
The Africa Centre for Energy Policy (ACEP), guided by its mandate to defend public interest and promote sound policy formulation in the energy and extractive sectors, has closely followed the developments in Ghana's petroleum upstream sector. Over the years, the country has experienced declining oil production and a downturn in exploration investment, both of which have raised concerns. ACEP has been vocal in its analysis, engaging the media to highlight research ndings and advocate for better policy directions.
On the sidelines of the International Monetary Fund (IMF) and World Bank Annual Meetings, the media interviewed the Executive Director of ACEP, who elaborated on the challenges facing the oil and gas sector. In his assessment, the poor performance of the upstream petroleum sector has been a signi cant contributor to Ghana's current scal challenges. Several key points were highlighted:
1. Over-reliance on optimistic oil production forecasts: The Ministry of Finance’s projections, which underpinned signi cant borrowings, were based on assumptions of high oil production and corresponding revenue increases. These were meant to support Ghana's nancial commitments, including those to the nancial markets and development banks.
2. Failed policies impacting sector growth: The anticipated growth in the oil industry never materialized due to ineSective policies. These failed policies have resulted in lower investment, making Ghana less attractive to investors in the oil and gas sector.
3. Litigation over scienti c problem-solving: Instead of addressing technical issues in the sector using sound scienti c approaches, the government has prioritized litigating investors. This has culminated in unfavourable outcomes, including the embarrassing arbi-
tration result in July 2024, where Ghana was portrayed as unable to properly interpret its own laws.
4. Speci c governance challenges: In expanding on the governance issues, the Executive Director discussed the ongoing dispute between Eni and Spring eld over the A na discovery and Sankofa. Speci cally, he had concerns on data presented in the appraisal programme (not an “appraisal report” as captured and later corrected by Norvan Report 1 ) submitted by Spring eld to the Petroleum Commission, which would be taken up oSicially by ACEP, not to discredit the private company, but in the defence of public interest. The key issues raised about the A na appraisal programme include:
1. Data inconsistencies: Springeld’s appraisal programme presented data that signi cantly diSered from the data used by the government to determine Tract Participation (TP) percentages in the unitization directive. This directive gave Spring eld and its partners 54.545% and Eni and its partners 45.455%. Notably, Spring eld’s estimate of the Oil
Water Contact (OWC) at 3958m was about 172m less than the 4130m used by the Ministry of Energy to estimate a Stock Tank Oil Initially In Place (STOIIP) volume of about 642 million barrels. If the OWC provided in Spring eld’s appraisal programme had been used from the outset, the A na discovery would likely have been deemed to require further work to assess its commercial viability instead of the premature unitisation directive, which wasted the country’s time for three years.
2. Appraisal programme cost concerns: The programme proposed re-entering the A na well to assess reservoir productivity and potential pressure changes, at an estimated cost of $50 million. This raises concerns about value for money and the timing of the appraisal. Ideally, reservoir ow tests should have been conducted during the original drilling campaign when hydrocarbons were rst encountered. Delaying the well test to now increases costs for Ghana National Petroleum Corporation (GNPC) and Explorco, which are partners in the A na eld. This points to regulatory failures under the
oversight of the Petroleum Commission and the Ministry of Energy, which have resulted in unnecessary nancial burdens for Ghana.
It is also highly contestable to pass-oS the well re-entry proposed by Spring eld as an appraisal programme within the context of Act 919 which requires delineation of the extent of hydrocarbon accumulation and the determination of commerciality of the discovery, which per industry practice is the essence of appraisal.
3. Unitization objectives: The appraisal programme aims to establish connectivity between the A na and Sankofa elds, as required for the unitization process. However, considering the recent arbitration ruling, ACEP believes that studies to con rm connectivity should have involved collaboration with the other party, Eni, to enhance the credibility of the process and avoid further disputes. A collaborative e ort would have been more eSective in addressing issues related to dynamic communication and commerciality, saving time and eliminating uncertainties.
ACEP's positions on these issues are not intended to harm Springeld but re ect its commitment to national interest, which has been undermined by recent governance failures. There is a growing perception that hidden interests are being prioritized over investment and development in Ghana’s upstream sector. As the world shifts away from oil and gas through decarbonization, ensuring a fair and transparent oil and gas industry in Ghana is more important now than ever.
ACEP continues to advocate for policies that attract investment and restore con dence in Ghana’s petroleum sector. The recent focus on misgovernance, political interference, and regulatory failures threatens to erode the long-term potential of the sector, leaving the country vulnerable in an era of stranded assets. Addressing these challenges requires the government to adopt sound, transparent, and investor-friendly policies that align with global trends in energy transition and decarbonization.
Signed. Kodzo Yaotse Policy Lead, Petroleum
& Conventional Energy
The Ghana Export – Import Bank (GEXIM) has made a signi cant contribution to the successful execution of this year’s National Farmers Day Celebration scheduled to take place in Accra on Friday 8th November 2024.
The Bank on Wednesday 23rd October 2024 donated an LS Tractor and its accessories worth GH 746,150.00 to the Ministry of Food and Agriculture at a brief ceremony at the ministry in Accra.
He further stated that “it is very important as a nation to focus on agriculture nancing in our quest to drive national development hence, the need to increase investment in the sector to propel economic growth. As a policy bank assisting the Government of Ghana to transform the Ghanaian economy into an export-led one, we remain committed to making investments in agriculture and
also supporting the National Farmers’ Day”.
On his part, the Deputy Minister of Food and Agriculture in charge of Livestock, Honourable Mohammed Hardi Tufeiru expressed the appreciation of the government and the Ministry of Food and Agriculture for the Bank's consistent support even in di cult times.
Management of the Bank for responding to a national call, especially sponsoring the 1st Runner- Up prize of a tractor and its accessories for the last 24 years to promote mechanized farming practice for sustainable agriculture growth.
The theme for this year’s event is ‘’Building Climate Resilient Agriculture for Sustainable Food
The General Manager, Human Resource and Administration at GEXIM, Mr. Michael Tetteh-Voetagbe made the donation on behalf of the Chief Executive O cer, Mr. Lawrence Agyinsam. Mr. Tetteh-Voetagbe expressed the Bank’s delight to partner with the Ministry of Food and Agriculture to celebrate Ghanaian farmers and shermen who contribute immensely to national development.
W
The Ghana Stock Exchange closed higher this week on the back of price increases by 3 counters.
The GSE Composite Index (GSE-CI) gained 0 77 points (+0.02 %) for the week to close at 4,347.47 points, reflecting a year-to-date (YTD) gain of 38.89% The GSE Financial Index (GSE-FI) remained flat for the week to close at 2,203.38 points (0.00%), reflecting a year-to-date (YTD) gain of 15 87%
Market capitalization inched up by 0 09% to close the week at GH¢99, 054.59 million, from GH¢98,964.42 million at the close of the previous week. This reflects a YTD gain of 34.05%.
The week recorded a total of 1,455,234 shares valued at GH¢13,965,256.93, compared with 1,114,611 shares, valued at GH¢14,296,225.56 traded in the preceding week.
MTNGH dominated the volume of trades while New Gold Exchange Traded Fund dominated the value of trades for the week accounting for 89.80 % and 78 87% of the volume and value of shares traded respectively.
The market ended the week with 3 advancers, as indicated in the table below
GSE CI GSE FSI
YTD Performance of GSE Market Indices
GSE CI GSE FSI1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000
Volume and Value of Trades for Week Ending 18/10/2024
The Cedi continued its depreciation run for the second straight week It traded at GH¢15 9900/$, compared with GH¢15.7900/$ at week open, reflecting w/w and YTD depreciations of 0.56% and 25.70% respectively. This compar es with a loss of 24.91% a year ago.
The Cedi also depreciated against the GBP for the week. It traded at GH¢20.8422/£, compared with GH¢20.7885/£ at week open, reflecting w/ w and YTD losses of 0.26% and 27.39% respectively. This compares with a depreciation of 25.63% a year ago.
The Cedi inched up marginally against the Euro for the week It traded at GH¢17 3700/€, compared with GH¢17.4049/€ at week open, reflecting w/ w gain and YTD depreciation of 0.20% and 24.43% respectively. This compares with a depreciation of 24.35% a year ago.
The Cedi lost grounds against the Canadian Dollar for the week It opened at GH¢11 5530/C$ but closed at GH¢11.5867/C$, reflecting w/w and YTD losses of 0.29% and 22.23% respectively. This compares with a depreciation of 24.15% a year ago.
Source: Bank of Ghana
Ghana Market Summary
Source: Bank of
The government raised a sum of GH¢4,195 32 million for the week across the 91 -Day, 182-Day and 364-Day Treasury Bills This compared with GH¢4,613.93 million raised in the previous week.
The 91-Day Bill settled at 25 94% p a from 25 62% p a last week whilst the 182 -Day Bill settled at 27 03% p a from 26.90% p a last week The 364Day Bill settled at 28 74% p.a from 28 58% p a last week
The tables below highlight primary market activity at the close of the week.
Oil prices fell as a recent rebound ran out of steam, with concerns over slowing demand in major oil consumer China remaining squarely in play. Brent futures traded at US$7 3.06 a barrel, compared to US$79.04 at week open, reflecting w/w and YTD depreciations of 7 57% and 5.17% respectively.
Gold prices rose as traders remained largely biased towards safe havens in anticipation of a tight 2024 presidential election Gold settled at US$2,730 00, from US$2,676 30 last week, reflecting w/ w and YTD gains of 2 01 and 31 77% respectively
The price of Cocoa declined for the week Cocoa traded at US$7,432 50 per tonne on Friday, from US$7,751.00 last week, reflecting w/w loss and YTD appreciation of 9.87% and 84.72% respectively.
YTD Performance of Selected Commodity Prices
swaps, with terms that can be set from three months to more than a year.
Source:
https://www.investopedia.com/terms/o/overnig htindexswap.asp
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Overnight Index Swap (OIS): It is a hedging contract in which one party exchanges a predetermined cash flow with a counterparty on a specified date. A debt, equity, or other price index is used as the agreed exchange for one side of this swap.
An overnight index swap applies an overnight rate index such as the federal funds rate Index swaps are specialized groups of conventional fixed -rate
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Introduction
In 2015, the United Nations set 17 global goals called Sustainable Development Goals (SDG) to help achieve a more sustainable and equitable world by 2030. The SDGs addressed various aspects of human life and the planet. SDG 10 was to "reduce inequalities". In the context of insurance coverage, SDG 10 focuses on ensuring everyone has access to fair and a ordable insurance products, regardless of their income level, social status, or geographical location. These goals are not just aspirations, but a roadmap for urgent action, and they play a crucial role in the discussion of inclusive insurance in low-income countries.
In many low-income countries, including Ghana, insurance remains a luxury rather than a necessity. The disparity in access to insurance services is a growing concern, leaving vulnerable populations at risk of nancial instability. However, there is hope. Insurers, with their critical role in mitigating inequalities, have the potential to make a signi cant impact. By designing inclusive products and fostering fair claims practices, they have the power to not only bridge the gap but also signi cantly reduce the inequality in insurance. This article delves into the issue of inequality in insurance, the barriers faced by marginalised communities and emphasizes the potential of insurers' actions to bring hope and optimism through innovation, inclusivity, and fairness.
The Role of Insurance in Economic Stability Insurance plays a crucial role in protecting against nancial hardship, o ering individuals and businesses a safety net in times of crisis. Whether through health, life, property, or agricultural insurance, having insurance cover enables policyholders to recover from unexpected events. However, insurance remains inaccessible for many people in low-income countries, especially those in rural areas or informal economies. This category of individuals or groups may face barriers in obtaining insurance due to income, race, gender, age, or geographic location. As a result, millions of people are forced to rely on informal or inadequate mechanisms that o er little or no protection during times of crisis. This lack of coverage deepens inequality by disproportionately
a ecting those who are already economically vulnerable. Without insurance, they are more likely to fall into poverty when faced with natural disasters, health issues, or accidents. Conversely, those with access to insurance can recover more quickly, enabling them to maintain or improve their economic standing. This divergence in outcomes contributes to a widening wealth gap between those with insurance and those without, exacerbating existing inequalities.
Barriers to Insurance Access
Several factors contribute to unequal access to insurance in low-income countries. These include:
A ordability: One of the most signi cant barriers to insurance access is cost. For many low-income individuals and families, insurance premiums are perceived as una ordable, especially when immediate needs like food, shelter, and healthcare take precedence. Even when lower-cost insurance products are available, the perception of insurance as a luxury rather than a necessity can dissuade potential policyholders from purchasing coverage.
Awareness and Literacy: Many people in low-income countries need more awareness or understanding of how insurance works and its bene ts. Low nancial literacy compounds this, preventing individuals from making informed decisions about insurance products. The people in these brackets perceive insurance as expensive and will not even attempt to learn more about its bene ts.
Geographical Constraints: Insurance services may be di cult to access in rural or remote areas. Insurers often concentrate their operations in urban centres, where the potential customer base is more extensive, leaving rural populations underserved. This geographic disparity further entrenches inequality, as rural populations are more likely to engage in agriculture or informal work already fraught with risk. Regulatory Challenges: Regulatory frameworks in some low-income countries can also hinder the development of inclusive insurance products. Without clear regulations or incentives for insurers to o er a ordable products to low-income consumers, the market tends to cater to high-
er-income individuals and large businesses.
Trust Issues: Many individuals in low-income countries distrust nancial institutions, including insurers, due to past experiences with fraud or mismanagement. In Ghana, the activities of some "susu" schemes where people bolted with accumulated funds from low-income contributors will remain a scar that will haunt insurance for a long time. In contrast, these schemes were not regulated insurance entities; their deeds have always been one of the reasons people shy away from insurance, especially on the life side. This lack of trust can prevent people from engaging with insurers, even when products are a ordable and accessible.
Complex processes: Most insurers still attempt to cover society's vulnerable on the same terms as they would to a large corporation. For most low-income individuals and enterprises, any attempt to include onerous clauses on documentation and complex wordings is a put-o . In conclusion, insurance can signi cantly reduce inequality in low-income countries by o ering nancial protection and stability during crises. However, barriers such as a ordability, awareness, geographic constraints, and trust issues continue to limit access for vulnerable populations. To truly bridge the gap, insurers must innovate and adapt their products and services to meet the speci c needs of marginalised communities. By doing so, they can help level the playing eld and create a more inclusive and equitable future.
Please stay tuned for part two of this article, where we will explore how insurers address these challenges through inclusive product design and innovative practices.
To mitigate the challenges of inequality, insurers have begun to recognise the importance of designing products that meet the speci c needs of low-income individuals and communities. Inclusive insurance products are developed with a ordability, accessibility, and simplicity, aiming to reach underserved populations that traditional insurance models often ignore. Here are some ways insurers are addressing inequality through
product design:
1. Microinsurance: Microinsurance is one of the most promising solutions for improving insurance access in low-income countries. These products provide low-cost coverage tailored to the speci c needs of low-income consumers, such as farmers, informal workers, or small-scale entrepreneurs. Microinsurance products are designed to be a ordable, with lower premiums and simpli ed policy terms, making them accessible to a broader population.
For example, agricultural microinsurance helps farmers manage risks related to crop failure, weather uctuations and market volatility. By providing coverage for natural disasters and other risks that disproportionately a ect low-income farmers, microinsurance enables them to invest in their businesses without fear of nancial ruin.
2. Usage-Based Insurance: Usage-based insurance (UBI) is another innovation that can make insurance more a ordable and equitable. With UBI, premiums are calculated based on actual usage or risk exposure rather than a xed rate. For instance, in the case of motor insurance, premiums could be tied to the number of kilometres driven, allowing low-income individuals who infrequently drive to pay lower premiums. Or allow individuals with more than one car to be insured based on which car they want to drive over some time. This model can also be adapted for other types of insurance, making coverage more a ordable for those with lower-risk pro les.
3. Parametric Insurance: Parametric insurance provides coverage based on the occurrence of prede ned events, such as a natural disaster or extreme weather condition, rather than on actual losses. This model allows for faster payouts and simpli es the claims process, making it more attractive to low-income consumers unfamiliar with traditional insurance processes. For example, parametric insurance for farmers could trigger payouts if rainfall drops below a certain threshold during the planting season, enabling them to recover quickly and reinvest in their crops.
4. Mobile and Digital Platforms: Digital innovation is critical to expanding insurance access.
Mobile technology, in particular, has enabled insurers to reach remote and underserved populations. Mobile insurance platforms allow individuals to purchase coverage, manage policies, and le claims using their phones, eliminating the need for physical infrastructure and reducing administrative costs. This digital approach has proven particularly e ective in countries with high mobile penetration but limited access to nancial services.
5. Simpli ed language: Insurance companies in the past often used complex terminology, jargon, and ne print, making it di cult for policyholders to understand their coverage. Simpli ed language has become popular now; this leads to clear and consistent de nitions and terminologies, plain language policies, short sentences and bullet points, etc. By using simpli ed language, insurance companies can:
- Increase policyholder understanding and engagement
- Reduce confusion and misinterpretation
- Improve customer satisfaction and trust
- Enhance accessibility for diverse populations
- Support informed decision-making This helps create a more inclusive and customer-centric insurance experience.
6. Culturally sensitive products: This involves designing insurance products that cater to speci c cultural or demographic groups' unique needs, values, and beliefs. This approach recognises that one-size- ts-all solutions may not e ectively serve diverse populations. By developing culturally sensitive products, insurers can increase accessibility and inclusion, build trust and loyalty with diverse populations, address unique needs and risks and support cultural diversity and equity.
7. Bundled services: This involves packaging insurance with other nancial services, such as banking, credit, or investments, to create a comprehensive nancial solution for customers. This approach o ers several bene ts, including convenience, cost savings, etc
Promoting Fair Claims Practices
Addressing inequality in insurance goes beyond product design and requires a commitment to fair and transparent claims practices. Insurers must ensure that all policyholders, regardless of income level, are treated equitably during the claims process. Fair claims practices help build trust in the insurance industry, which is critical for improving uptake and coverage in low-income populations.
1. Simplifying the Claims Process: Navigating the claims process can be intimidating and confusing for many low-income policyholders. Insurers can promote fairness by simplifying the process, o ering clear instructions, and minimising the documentation required for claims submission. Some insurers have implemented digital claims systems that allow policyholders to submit claims via mobile platforms, speeding up the process and reducing the burden on the policyholder.
2. Transparent Payouts: Transparency in claims payouts is essential to maintaining trust between insurers and policyholders. Insurers should communicate how claims will be evaluated and how payouts are determined. Parametric insurance models, for example, o er a high degree of transparency by linking payouts to speci c, measurable events, eliminating ambiguity about what triggers a payout.
3. Timely Payouts: Delays in claims payouts can have devastating e ects, particularly for low-income individuals who rely on insurance to recover from unex-
pected nancial shocks. Insurers must prioritise timely payouts to ensure policyholders recover quickly and avoid more profound nancial distress. Digital claims platforms can expedite this process, enabling insurers to process and disburse claims faster.
4. Reducing Fraud and Corruption: Fraud and corruption can disproportionately a ect low-income policyholders, eroding trust in the insurance system and discouraging future participation. Insurers must implement robust anti-fraud measures to ensure that claims are processed fairly and that payouts go to legitimate policyholders. This may involve leveraging technology such as blockchain to increase transparency and reduce opportunities for fraud.
Conclusion
Insurance has the potential to be a powerful tool for reducing inequality in low-income countries, but only if insurers take deliberate steps to make their products and practices more inclusive. By designing a ordable, accessible, and transparent insurance products and promoting fair and equitable claims practices, insurers can help bridge the gap between the insured and uninsured, protecting vulnerable populations from nancial ruin. As insurers continue to innovate and expand their reach, they must remain committed to fostering an inclusive insurance market that serves all segments of society regardless of income or location. In doing so, they can be critical in building a more resilient and equitable future for low-income countries.
ThThe Center for Financial Literacy Education Africa marked the Second Edition of the National Estate and Gift Planning Awareness Conference on the 18th of October, 2024 at the Ghana-India Ko Annan Centre of Excellence in Accra. The annual event which is a major activity during the October Estate and Gift Planning Awareness Month Campaign every year brought together a diverse group of young professionals, including health professionals, banking and nance professionals, and experts within
the nancial and legal community to discuss the pivotal theme, “Estate and Gift Planning: An Instrument for Wealth and Sustainability; Giving Back Means Giving Forward.”
The conference underscored the importance of estate and gift planning as a critical tool for both wealth management and sustainability. Estate planning involves making strategic decisions about the transfer of assets during a person’s lifetime and at death, while gift planning typically
refers to charitable donations made during one’s lifetime or as part of an estate plan. Both processes help individuals and families maintain nancial health, protect assets, and create meaningful legacies.
The concept of “Giving Back Means Giving Forward” was a focal point, highlighting how charitable giving and thoughtful and careful estate planning can bene t not only bene ciaries but also communities and future generations. This idea of paying it
forward through well-structured estate and gift plans promotes not only personal wealth preservation but also sustainable social impact.
Experts at the conference discussed various strategies that allow individuals to leverage their wealth in ways that contribute to societal well-being, such as Charitable Trusts and Foundations: Structuring gifts to create long-lasting legacies through donations to charitable causes, ensuring that funds are managed
e ectively for generations. Writing of Wills; a will gives individuals the power to determine how their wealth will be distributed after death. Without a will, intestacy laws dictate how assets are divided, which may not align with the deceased wishes.
The collaborative nature of the conference emphasized how estate and gift planning integrates cross-disciplinary expertise, combining legal, nancial, health, and philanthropic knowledge to achieve sustainability, wealth preservation, and the common good.
A ve-member advisory board was unveiled at the conference that would provide strategic guidance to the Center for Financial Literacy Education Africa in its mission to empower Africans with knowledge to make informed nancial decisions. Their responsibilities include shaping policies that promote nancial literacy, advising on educational programs, facilitating partnerships with key stakeholders, and supporting fundraising e orts to sustain the Center for Financial Literacy Education Africa’s initiatives. The ve-member advisory board was;
Mr. John Awuah, Chief Executive O cer of Ghana Association of Banks, who would serve as the chairman of the board, Prof. Enoch Opoku Antwi, Dean of Business and Communication Arts, Academic City University College, Mr. Daniel Ofori-Dankwa, President of Pro Patria Limited, Mr. Kennedy Wiafe E ah, Lawyer and Legal Practitioner at Nsiah Akuetteh & Co, and Mrs. Ramat Ebella Whajah, Sector Head of the Accra-Tema Zone, National Investment Bank.
The CFLE team led by Mr. Peter Asare Nyarko expressed his
profound gratitude and excitement to work with the advisory board to elevate the Centre’s initiatives and projects to achieve its mission and long-term vision of an Africa in which all people are nancially aware and nancially literate and have access to ethical nancial advice, products, and services.
This conference provided a platform for professionals to exchange ideas and reinforce the signi cance of estate and gift planning in fostering a culture of responsible wealth management and philanthropy.
Ghanaian-based business, known for its innovative cake mix, has recently obtained an export license from the Ghana Export Promotion Authority (GEPA), enabling it to expand its market beyond the borders of Ghana. This signi cant milestone positions Mudeys Catering Services as a key player in the food industry, with ambitions to tap into new markets across Africa and beyond. As part of the support received from the Heritors Labs through the RISA Fund, the company has also acquired a new state-of-the-art production machine designed to scale up the manufacturing process of its signature cake mix.
The new equipment will not only boost production capacity but also enhance e ciency, helping Mudeys meet growing demand both locally and internationally. This is a signi cant step toward achieving Mudeys' vision of becoming a household name in the baking industry. With the export license in hand, Mudeys Catering Services says it is now poised to ship its high-quality cake mix to international markets, starting with key African regions. Mudeys’ expansion drive aligns with Heritors Labs' mission of supporting local businesses to commercialize their products and scale their operations, turning research-based innovations into marketable products.
Heritors Labs says it remains committed to empowering businesses like Mudeys Catering Services with the tools and resources they need to thrive in competitive markets.
“This success story highlights the impact of the RISA Fund in fostering innovation, supporting small and medium-sized enterprises (SMEs), and driving economic growth,” the company noted.
EDITOR: BENSON AFFUL
