Monday’s four sched­uled matches in the top flight of Italian football have been postponed, following the death of Pope Francis.

The Vatican announced on Monday morning that Pope Francis had died at the age of 88, having recently been dis­charged from hospital following five weeks of treatment for an infection.

Four Serie A matches – Torino v Udinese, Cagliari v Fiorentina, Genoa v Lazio and Parma v Ju­ventus had been scheduled to be played on Easter Monday, which is a national holiday in Italy.

The governing body which oversees the Italian top flight said the fixtures would be rearranged in due course.

Pope Francis was elected to lead the Catholic Church in 2013, replacing Pope Benedict XVI.

The 88-year-old was a known football fan and had supported Argentine side San Lorenzo since he was a child.

A number of Serie A clubs posted tributes to the Pope follow­ing his passing.

“A loss that deeply saddens our city and the entire world,” a Roma statement read.

“His faith, his humility, his courage and his dedication have touched the hearts of millions of people, making him a moral refer­ence of our time.” —BBC

MONDAY’S four sched­uled matches in the top flight of Italian football have been postponed, following the death of Pope Francis.

The Vatican announced on Monday morning that Pope Francis had died at the age of 88, having recently been dis­charged from hospital following five weeks of treatment for an infection.

Four Serie A matches – Torino v Udinese, Cagliari v Fiorentina, Genoa v Lazio and Parma v Ju­ventus had been scheduled to be played on Easter Monday, which is a national holiday in Italy.

The governing body which oversees the Italian top flight said the fixtures would be rearranged in due course.

Pope Francis was elected to lead the Catholic Church in 2013, replacing Pope Benedict XVI.

The 88-year-old was a known football fan and had supported Argentine side San Lorenzo since he was a child.

A number of Serie A clubs posted tributes to the Pope follow­ing his passing.

“A loss that deeply saddens our city and the entire world,” a Roma statement read.

“His faith, his humility, his courage and his dedication have touched the hearts of millions of people, making him a moral refer­ence of our time.” —BBC

Ghana has exceeded an important benchmark under the International Monetary Fund (IMF) programme of increasing the country’s gross international reserve. This has been achieved a year ahead of the completion date of the programme in May 2026.

Data released after a staff-level agreement between the government and the IMF, indicates that Ghana’s gross international reserve hit $9.3 billion as of as of February 2025. This is equivalent to four months of import cover.

Ghana was expected to reach the threshold by middle of 2026 under the programme.

Reacting to the development, senior finance lecturer at the University of Ghana Business School, Dr Benjamin Amoah described the feat as a good development that could sustain the cedi’s stability.

“I think this is a good development for the cedi. Improving the reserves will send a positive signal to investors that the currency is in a good position”, he said.

He advised the government to continue with the debt sustainability measures to further boost the country’s reserves.

Gov’t and IMF reach staff-level agreement

Ghana and the IMF reached a staff-level agreement on a package of economic policies and reforms to conclude the fourth review of the 36-month Economic Credit Facility (ECF)-supported programme on April 15, 2025.

This staff-level agreement is subject to the executive board’s consideration.

Upon completion of the executive board review, Ghana would have access to SDR 267.5 million (about US$370 million). This will bring the total IMF financial support disbursed under the arrangement since May 2023 to SDR 1,708 million, approximately US$2.355 billion.

The Fund in a communique said growth in 2024 was higher than expected, underpinned by strong mining and construction activity.

“The external sector has seen a considerable improvement, driven by solid exports, particularly gold and, to a lesser extent, oil, and higher remittances. As a result, international reserves accumulation has far exceeded the ECF-supported programme targets”, it stressed.

Notwithstanding these achievements, the Fund indicated that the overall performance under the IMF-supported programme deteriorated markedly at end-2024.

“Preliminary fiscal data point to slippages in the run-up to the 2024 general elections, on account of a large accumulation of payables. Inflation exceeded programme targets. Several reforms and policy actions were delayed across the fiscal, financial, and energy sectors”, it added.

Against this backdrop, it pointed out that the new authorities have taken bold measures to address policy slippages and ensure the programme objectives remain within reach.

On the fiscal front, the government has launched an audit of the payables to firm up the size and nature of the slippages. Based on preliminary estimates of new payables, the primary balance posted a deficit of some 3¼ percent of Gross Domestic Product (GDP) compared to a targeted surplus of ½ percent of GDP.

To address these slippages, the IMF alluded that the government has enacted a 2025 Budget that targets a 1½ percent of GDP primary surplus and adopted several public financial management reforms. The latter includes an enhanced fiscal responsibility framework and new rules to tighten expenditure commitments.

The IMF mission, which was in Ghana last week engaged the authorities on their wide-ranging structural reform program, with a focus on enhancing governance and transparency and strengthening State-Owned Enterprises management in the gold, cocoa, and energy sector. 

The staff met with the Finance Minister Forson, Bank of Ghana Governor, Dr. Johnson Asiama, and their teams, as well as representatives from various government agencies and other stakeholders.

It expressed its gratitude to the Ghanaian authorities and other counterparts for their continued open and constructive engagement.

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Managing Director of the IMF, Kristalina Georgieva

The International Monetary Fund (IMF) has called on Ghana and other countries impacted by the United States’ 10% trade tariffs to intensify efforts by implementing economic policies that will protect them from global trade disruptions.

Amid growing global trade tensions, the IMF emphasised the urgency for these countries to prioritise economic stability through bold reforms.

Speaking at the 2025 Spring Meetings of the World Bank Group and the IMF, Managing Director Kristalina Georgieva called on the need for immediate action.

“All countries must redouble efforts to put their own houses in order. In a world of high uncertainty and frequent shocks, there is simply no room for delay in reforms to enhance economic and financial stability and improve growth potential.” Georgieva said.

She added that many economies are entering this challenging period from a weaker position, burdened by significantly higher public debt compared to just a few years ago.

“As such, most countries must take resolute fiscal action to rebuild fiscal space, setting out gradual adjustment paths that respect fiscal frameworks,” she said.

She further acknowledged that some nations may face additional shocks requiring renewed fiscal support.

SP/EB

By Simon Asare

Accra, April. 21, GNA – Asante Kotoko SC has urged fans to remain calm following the dismissal of coach Dr. Prosper Narteh Ogum.

Kotoko and coach Ogum parted ways on Monday, April 21, 2025, following a poor run of results that saw the club slip to fourth on the league table.

The Porcupine Warriors are winless in four games, and their woes were compounded by a 3-0 hammering by Accra Lions in midweek and yesterday’s 2-0 loss to Nations FC.

A club statement about Ogum’s dismissal said, “This decision was reached following constructive discussions between both parties, with a shared understanding that it is in the best interest of the club at this time.

“We thank Coach Ogum for his dedication and service to the club, and we wish him the very best in his future endeavours.

“We urge our supporters to remain calm and continue to support the club during this transition. Further updates will be communicated in due course.”

Despite being six points behind league leaders Bibiani Gold Stars, Kotoko still have a chance to clinch the league title with six games remaining.

They have also reached the semi-final stage of this year’s MTN FA Cup.

GNA

KOA

Burkina Faso’s military government has said it foiled a “major plot” to overthrow junta leader Capt Ibrahim Traoré, with the army alleging the plotters were based in neighbouring Ivory Coast.

Security Minister Mahamadou Sana said the coup attempt was led by current and former soldiers working with “terrorist leaders”. The intention was to attack the presidential palace last week, he added.

The aim of the plan was to “sow total chaos, and place the country under the supervision of an international organisation”, Sana said on state television on Monday.

It is the latest of several claims of attempts to remove the junta leader who seized power in 2022 amid increasing militant attacks.

Burkina Faso, like its Sahel neighbours, has been battling armed jihadist groups, with an estimated 40% of the country under their control.

Despite promises by Capt Traoré’s military government to improve security and even seeking new security partnerships with Russia, the situation remains dire with frequent attacks from insurgents.

In this latest coup attempt, which happened last week but details of which have only just been released, Sana said the plotters attempted to use Burkinabe religious and traditional leaders to sway army officers into backing the plan.

“The manoeuvre was to culminate, according to the terrorist plotters’ plan, on Wednesday 16 April, 2025 in an assault on the presidency of (Burkina) Faso by a group of soldiers recruited by the nation’s enemies,” he said.

“The brains outside the country are all located in Ivory Coast,” he added, naming in particular two former army officers, believed to be behind the plot.

He said “sensitive information was passed on to “terrorists” to increase attacks on the military and civilians and “incite a revolt against the authorities”.

Last week, several military personnel, including two officers, were arrested for planning to “destabilise” the government, security sources told the AFP news agency.

The Ivorian authorities have not yet commented on claims it hosted the plotters but the Burkinabe junta has often blamed its southern neighbour of supporting its opponents in exile.

The latest claim comes months after Ouagadougou said it thwarted another “destabilisation” plot against the junta last November.

Burkina Faso, along with two other military-led states – Mali and Niger, has broken away from the regional West African bloc, Ecowas, to form a new alliance.

They have cut ties with former colonial power France and allied with Russia instead.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

Trina Solar is a China-based solar equipment manufacturer with operations across South East Asia

The US Commerce Department has announced plans to impose tariffs of up to 3,521% on imports of solar panels from four South East Asian countries.

It comes after an investigation that began a year ago when several major solar equipment producers asked then-President Joe Biden administration to protect their US operations.

The proposed levies – targeting companies in Cambodia, Thailand, Malaysia and Vietnam – are in response to allegations of subsidies from China and the dumping of unfairly cheap products in the US market.

A separate US government agency, the International Trade Commission, is due to reach a final decision on the new tariffs in June.

The countervailing and anti-dumping duties, as these tariffs are known, vary between companies and the countries their products are made in.

Some solar equipment exporters in Cambodia face the highest duties of 3,521% because of what was seen as a lack of cooperation with the Commerce Department investigation.

Products made in Malaysia by Chinese manufacturer Jinko Solar faced some of the lowest duties of just over 41%.

Another China-based firm, Trina Solar, faces tariffs of 375% for the products it makes in Thailand.

Neither company immediately responded to requests for comment from BBC News.

In recent years, many Chinese firms have moved operations to South East Asia in a bid to avoid tariffs imposed since the start of US President Donald Trump’s first term.

The US Commerce Department’s findings were welcomed by the American Alliance for Solar Manufacturing Trade Committee – a group of manufacturers that called on the US government to launch the investigation.

“This is a decisive victory for American manufacturing and confirms what we’ve long known: that Chinese-headquartered solar companies have been cheating the system,” said Tim Brightbill, lead counsel to the Alliance.

In 2023, America imported almost $12bn (£8.9bn) in solar equipment from the four countries, according to US Census Bureau figures.

While the planned tariffs are likely to help US solar panel manufacturers, they could also mean extra costs for businesses and consumers who have benefited from the availability of cheaper solar products.

The levies would be imposed on top of other tariffs already rolled out by the Trump administration.

They planned tariffs were announced just days after Chinese President Xi Jinping, completed a tour of Vietnam, Malaysia and Cambodia.

The trip was aimed to boost ties with the region and encourage those nations to resist what he called “unilateral bullying” by the US.

Trump has so far imposed taxes of up to 145% on imports from China. Other countries are now facing a blanket US tariff of 10% until July.

His administration said last week that when the new tariffs are added on to existing ones, the levies on some Chinese goods could reach 245%.

China has hit back with a 125% tax on products from the US and vowed to “fight to the end”.

Elvis Ahorgah and Denny Tyler (in black shots)

Ghanaian boxer Elvis Ahorgah, popularly known as The Soldier, lost his bout to British opponent Tyler Denny on Sunday, April 21, 2025, in the United Kingdom (UK).

The bout started with the Ghanaian landing well-timed punches to score maximum points from the judges.

However, he began to press eagerly, which caused him to overcommit and leave openings in his stance.

The British opponent then capitalised on the opening, stringing together a precise four-punch combo in the final seconds to reassert his dominance.

Denny continued to mount pressure on the Ghanaian with more combo punches in the fourth round, eliciting massive cheers from the crowd.

Ahorgah then regained his composure and returned with some thudding body shots that affected the British boxer throughout the course of the bout.

At the end of the ten rounds, The Soldier lost to Denny by a narrow 97-92 decision from the judges after the highly competitive bout.

The Ghanaian boxer will be training to bounce back stronger in subsequent bouts.

Watch the bout below:

Some highlights from Elvis Ahorgah, the soldier’s last night fight against British boxer Tyler Denny, which ended in a close call from officials, with 97-92 in favor of Tyler Denny.

‘Soldier’ put up a tough fight 🔥 pic.twitter.com/A53Oe2r1YI

— SIKAOFFICIAL🦍 (@SIKAOFFICIAL1) April 21, 2025

Meanwhile, watch part 2 of Sports Check with veteran coach JE Sarpong

SB/BB

Ghana’s Finance Minister, Cassiel Ato Forson, will hold critical talks with International Monetary Fund (IMF) Managing Director Kristalina Georgieva this week during the IMF and World Bank Spring Meetings in Washington, D.C. The discussions will center on Ghana’s economic reforms, progress under its IMF-backed program, and strategies to stabilize its economy amid global challenges.

Forson, leading his first delegation under President John Mahama’s administration, arrives days after Ghana secured a staff-level agreement with the IMF on the fourth review of its $3 billion Extended Credit Facility. The deal unlocks approximately $370 million in funding, despite earlier delays in meeting structural benchmarks before the government took office in January 2025.

Ghana’s agenda at the meetings includes sessions on job creation, energy security, and climate adaptation, alongside meetings with the Paris Club, credit rating agencies, and U.S. Treasury officials. These engagements aim to bolster investor confidence and secure support for the country’s debt restructuring efforts, a key pillar of its economic reset plan.

Central to Forson’s pitch is the “Ghana Reset Story,” a roadmap prioritizing fiscal discipline, social protection programs, and structural reforms to achieve debt sustainability. The plan also emphasizes inclusive growth, targeting vulnerable populations through targeted subsidies and public service investments under the slogan “The Ghana We Want.”

The meetings coincide with Ghana’s fragile recovery from soaring inflation and a volatile currency, compounded by global supply chain disruptions and elevated interest rates. While the IMF deal offers immediate liquidity relief, analysts stress that long-term stability hinges on the government’s ability to implement politically sensitive measures, such as expanding tax compliance and curbing energy sector debts. Success could reinforce Ghana’s role as a regional economic anchor, though balancing austerity with public expectations remains a tightrope walk.

The opposition New Patriotic Party (NPP) has denied releasing any portion of the Prof. Oquaye Committee Report, stating that only one copy was prepared and submitted to the National Council. 

The General Secretary of the NPP, Justin Kodua Frimpong, who issued the disclaimer, said the party was still studying the report’s contents and would disclose relevant information if necessary.

He warned against the circulation of fake quotes purporting to be from the report and attributed them to political opponents, particularly members of the National Democratic Congress (NDC).

Mr Frimpong urged members of the party to disregard such quotes and remain focused on the party’s rebuilding efforts ahead of the 2028 elections.

Prof. Oquaye’s 11-member committee tasked with investigating the party’s defeat in the 2024 general election presented its report to the National Council of the party last Wednesday.

Since then, there have been several quotes making the rounds on social media purported to be coming from the report.

Flag bearer

The party also cautioned its executives, leading members and communicators against making public endorsements or denigrating comments about prospective flagbearer aspirants.

The National Council of the party issued the warning after taking a serious view of some distasteful comments made against some aspirants.

The directive, which remains in force until nominations for presidential primaries are opened, warned that any party executive or member who flouted it would face sanctions in accordance with the party’s constitution and code of conduct.

 The party urged its members and stakeholders to cooperate in maintaining party unity.

9-Member Committee 

Meanwhile, the party has formed a nine-member Constitutional Amendment Committee to review and propose amendments to the party’s constitution.

The committee, chaired by Frank Davies, Chairman of the party’s Constitutional and Legal Affairs Committee, was constituted by the National Council at its meeting last Wednesday.

The committee members include the Deputy Minority Leader and Member of Parliament (MP) for Asokwa, Patricia Appiagyei; MP for Ofoase Ayirebi, Kojo Oppong Nkrumah; a Deputy General Secretary of the NPP, Dr Antoinette Tsiboe-Darko; the Volta Regional Chairman of he NPP, Makafui Woanyah, and a former MP, Ebenezer Nartey, as Secretary.

The committee’s mandate includes:

• Identifying provisions of the Party Constitution that require amendments to give effect to the recommendations of the Mike Oquaye Election Review Committee

• Working on the recommendations of the 2021 Constitutional Review Committee chaired by Hon. Alexander Afenyo-Markin

• Receiving proposals for constitutional amendments from party members and identifiable groups

• Categorising proposals under various Articles and Clauses for ease of reference

• Making appropriate recommendations to guide the debate at the National Annual Delegates Conference

The party would hold an Extraordinary National Annual Delegates Conference in July this year to consider the committee’s report, which would be tabled in the form of amendment motions for approval or otherwise.

A key outcome of the partnership is the development of a Memorandum of Understanding

In a landmark move to bridge academia and industry, the Regional Maritime University (RMU) and DNV Benmarine Services (BmS) have launched a strategic training initiative designed not only to enhance professional capacity in the maritime sector but also to spearhead local innovation in research and manufacturing.

Unveiled on Wednesday, April 16,2025, the “DNV & RMU Training Programmes for Industry Stakeholders” aim to develop high-level technical skills in maritime safety, operations, and risk management while laying the groundwork for deeper collaboration.

A key outcome of the partnership is the development of a Memorandum of Understanding (MoU) that will drive research into the local production of welding electrodes to meet international standards—a transformative move set to boost local manufacturing and reduce reliance on imports.

“This initiative goes beyond training. It’s about innovation, sustainability, and building Ghana’s capacity as a leader in maritime excellence across Africa,” said Dr. Jethro W. Brooks Jr., Acting Vice-Chancellor of RMU.

Dr Brooks emphasized that the partnership between RMU and DNV embodies the future of innovation—one driven not in isolation but through synergistic collaboration that harnesses the strengths of both academia and industry.

He further highlighted RMU’s pride in being part of this forward-looking alliance, which aligns with the university’s broader strategic vision to promote sustainability, deepen international collaboration, and contribute meaningfully to the advancement of maritime education and practice across Africa.

DNV Regional Manager Ian Edward underscored Ghana’s strategic value in the region’s maritime future, highlighting the programme’s potential to create a new generation of highly skilled professionals ready to drive industry evolution.

“The RMU-DNV BmS collaboration sets a precedent for how strategic partnerships can solve real-world challenges through research, education, and a shared vision for sustainable growth,” he stated.

Regional Maritime Academy Manager for the Middle East and Africa, Ms. Michelle Maria Kurian, and Managing Director of DNV BmS, Frederick Asamoah, also expressed strong enthusiasm for the collaboration, particularly in the areas of academic and industrial research, as well as knowledge sharing to address challenges facing the maritime industry.

Additional presentations were made by the Deputy Managing Director of DNV BmS, Bernard Lomotey Agbloe, and Business Controller, Mary Owusu Ewusi.

Leaders from key maritime and petroleum institutions, including the Ghana Maritime Authority, Ghana National Petroleum Corporation (GNPC), Tullow, MODEC, and the Ghana Ports and Harbours Authority (GPHA), were in attendance, marking a unified industry commitment to the success of the initiative.

GA

Meanwhile, watch GhanaWeb’s tour of Fort Victoria and the Cape Coast Lighthouse below:

The Apostolic Nunciature in Ghana has described the late Pope Francis as a tireless advocate for human dignity whose pontificate was defined by a gospel of mercy, fraternity and peace, following the Vatican’s confirmation of his death on Easter Monday, April 21, 2025.

A statement released by the Apostolic Nunciature in Ghana –  the official embassy of the Holy See (the Vatican) – in Accra, highlighted the deep spiritual impact the Holy Father had not only on the global Catholic community but on humanity at large.

“The Holy Father devoted his entire pontificate to the service of the universal Church, promoting the Gospel of mercy, fraternity, and peace,” the Nunciature said. “His pastoral leadership, spiritual depth, and tireless commitment to the dignity of every human person have left an indelible mark on the life of the Church and on humanity.”

Throughout his 12-year tenure as leader of the Roman Catholic Church, Pope Francis championed the plight of the poor, refugees, and marginalised communities, urging the world to see the divine in every person. His teachings often focused on compassion, social justice, and the need for dialogue across religions and cultures.

In Ghana, Catholic leaders and faithful have praised Pope Francis for being a “people’s pope,” whose humility and reformist vision resonated strongly across Africa. From his encyclical Fratelli Tutti on human fraternity to Laudato Si’, his call for environmental stewardship, the Pope’s messages found a receptive audience on the continent.

The Nunciature’s statement also described Pope Francis as a spiritual giant whose commitment to the poor and the voiceless elevated the Church’s moral responsibility in today’s world. His consistent emphasis on mercy over judgment challenged traditional power structures within the Church and inspired a generation of young Catholics to embrace social activism grounded in faith.

Ghana’s Catholic community, which forms part of the country’s religious landscape, is expected to organise a series of liturgical commemorations in the coming days. The Nunciature noted that further details on memorial services and acts of homage would be announced in due course.

As tributes pour in from across the globe, Ghanaians of all faiths are reflecting on a papacy that bridged divides, challenged indifference, and called the world to a deeper sense of shared humanity.

In mourning the Pope’s passing, the Nunciature renewed its expression of “deep spiritual closeness and gratitude to the good people of Ghana,” reaffirming the unifying vision of the late Pontiff and the enduring legacy he leaves behind.

Fitch Solutions on Ghana’s impact amid US import tariff

UK-based research firm, Fitch Solutions, has projected that Ghana is expected to be among the least affected economies in Sub-Saharan Africa Following the latest US tariff measures announced by President Donald Trump.

In a regional ranking published by the UK-based firm, Ghana is placed 42nd in terms of vulnerability to the new US tariff regime, suggesting a comparatively limited exposure relative to peers.

The country faces an effective reciprocal tariff rate of 10%, with cocoa, textiles, and selected agricultural exports cited as the most impacted sectors.

Fitch’s “Effective US Reciprocal Tariff Rates” index incorporates not only headline duties but also considers exemptions and sector-specific levies.

The index highlights that the Democratic Republic of Congo, Somalia, Sao Tome and Principe, Niger and Eritrea will face the greatest tariff pressures in the Sub-Saharan region.

Equatorial Guinea, by contrast, is forecast to be the least affected among the 48 Sub-Saharan economies assessed.

The broader Sub-Saharan African region, however, may experience renewed macroeconomic pressure, particularly among oil-exporting countries, amid a sharp decline in crude prices.

Brent crude has fallen nearly 15% since April 2, 2025, with analysts warning of further downside risks tied to weakening global demand and OPEC+’s decision to increase supply by restoring previously cut volumes.

“We believe that SSA’s oil-exporting markets will come under significant pressure should global oil prices fail to recover. Among the larger markets, Angola and Nigeria are particularly vulnerable given their structural dependence on oil as a source of both government revenue and foreign exchange,” Fitch noted.

While Ghana appears shielded from the worst effects, analysts warn that targeted sectors such as cocoa and textiles, both of which form a meaningful part of Ghana’s export base, may still face disruptions, especially if key US buyers diversify sourcing to avoid elevated costs.

SP/EB

 Government ap­pointees serving on the fourth assembly of the La Dade-Kotopon Municipal Assembly (LaDMA) have been urged to use their expertise to help the assembly achieve its development goals.

The Presiding Member (PM) for LaDMA, Emmanuel Nyarko Baah, made the call at short swearing-in ceremony of five new appointees of the assembly at La on Monday.

According Mr Baah, the inclusion of the appointees was very critical to the decision making process of the assem­bly, adding that their presence in addition to the elected assembly members would help the assembly attain its two-thirds majority during meetings.

“You were appointed be­cause of your vast expertise so you cannot sit down with us at meetings without sharing your knowledge on how best the assembly could attain its devel­opmental goals” he said.

The PM pleaded with the appointees to work closely with all assembly members in their respective electoral areas to offer prompt suggestions on urgent developmental matters in the area.

“You are assembly members without electoral area but with the oversight responsibilities and powers over all the 10 electoral areas in the municipality, you are to offer suggestions on sensitive matters that needs urgent atten­tion” he said.

Mr Baah aslo stated that the assembly is planning a training workshop for the appointees in order to help them come to speed on their daily activities as members of the assembly.

On behalf of the Appointees, Francis Ken Kofi Anderson ex­pressed their appreciation to the President for the appointment and pledged to discharge their duties effectively for the benefit of the communities at La.

The appointees, who were made up of three male and two female, were sworn in by the La District Court Magistrate, Justice Adwoa D. Asumadu-Sekye.

They are Ms Karen Naa Dro­mo Barnes Asare, Ms Augustina Abbey, Miyemliniaba Nii Adjei Asua Qweeni, Mr Francis Ken Kofi Anderson and Mr John Nartey Doku.

 BY VICTOR A. BUXTON

In response to macroeconomic problems and inflationary pressures, the Bank of Ghana’s Monetary Policy Committee (MPC) increased the Monetary Policy Rate (MPR) by 100 basis points (bps) to 28.0%. 

High inflation, exchange rate volatility, and fiscal deficits have all weighed heavily on Ghana’s economic stability, prompting the decision. 

While the change is meant to enhance the economy in the long run, it will have a substantial immediate impact on small and medium-sized businesses (SMEs) and their owners. 

Understanding the repercussions of this rate hike is critical because SMEs are the backbone of Ghana’s economy, accounting for a large portion of employment and GDP. 

The following are keyways this hike will influence SMEs and company owners in Ghana.

Increased cost of borrowing

One of the direct repercussions of the MPR hike is higher loan rates from commercial banks. 

Small and medium-sized enterprises (SMEs) that rely on bank loans to fund operations, expansion, or inventory purchases will face higher interest rates. 

This will make credit more expensive, reducing firms’ capacity to obtain much-needed finance. 

The increased cost of borrowing may result in cash flow difficulties, impeding growth and expansion initiatives. 

For instance, a Kumasi furniture maker requesting a GH₵200,000 loan at 30% interest (up from 27%) now pays GH₵60,000/year instead of GH₵54,000. 

This results in a decreasing profit. Furthermore, market participants utilizing overdrafts pay higher fees, causing some to reduce inventory orders.

Reduced profit margins

Higher borrowing prices can have a substantial impact on Ghana’s SMEs, particularly those with tight profit margins. 

For example, a small agribusiness that obtains a loan to expand its operations may discover that rising interest rates raise monthly obligations. 

Instead of using revenues to buy more raw materials or hire more employees, the company must devote a greater part of its revenue to debt payment. 

Similarly, an Accra retail shop that uses loans to stock inventory may struggle to maintain profitability as payback obligations increase, causing it to lower stock levels. 

This financial burden might result in downsizing, limited business growth, or even closure. 

To survive, SMEs must consider cost-cutting measures, alternative funding options, and better cash flow management.

Decline in consumer spending

A higher Monetary Policy Rate (MPR) diminishes economic liquidity, raising borrowing costs for both businesses and consumers. 

Consumer spending falls as disposable income falls, which has a direct impact on Ghana’s SMEs. 

For example, a small restaurant in Kumasi may see fewer clients if residents cut back on dining out. 

Similarly, a store in Accra may witness a drop in sales as customers priorities necessities above fashion. 

Service-based businesses, such as hairdressers and event planners, may struggle when customers restrict discretionary spending. 

With decreasing revenues, SMEs may struggle to fund operational costs, pay personnel, and replace inventory. 

To survive, firms must investigate cost-cutting strategies, diversify revenue streams, and increase consumer loyalty through promotions or value-added services.

Limited access to capital and investment

With rising capital costs, Ghana’s venture capitalists, private investors, and banks may become more risk-averse, making it difficult for SMEs to acquire funding. 

For example, an Accra-based IT business creating an agritech solution may struggle to attract investors who want bigger returns. 

Similarly, a small manufacturing business in Takoradi looking for a loan to improve its equipment may face stiffer lending criteria, such as greater collateral or interest rates. 

As banks tighten lending access, SMEs that require working money for expansion or innovation may be pushed to reduce their operations. 

To overcome this difficulty, firms could investigate alternate funding options such as grants, crowdfunding, or strategic alliances, while also upgrading their financial records to attract potential investors.

Potential business closures and job losses

For SMEs already facing economic difficulties, an increase in the cost of loans could be the tipping point that leads to business closures. 

Businesses that cannot sustain operations due to excessive debt costs and dwindling sales may be forced to close. 

This, in turn, will result in job losses, affecting livelihoods and raising unemployment rates in Ghana.

Conclusion

The 100-basis point hike in Ghana’s Monetary Policy Rate to 28.0% creates a tough environment for SMEs and business owners. 

While the policy action aims to manage inflation and stabilize the economy, it comes at a cost: increased borrowing costs, lower profitability, decreased consumer demand, and limited access to capital. 

Business owners must adjust by looking into new financing options, increasing operational efficiencies, and carefully controlling costs. 

Meanwhile, authorities should consider additional steps to boost SMEs, such as targeted funding programs, tax breaks, and policies that promote a more resilient business environment. 

The route ahead is unpredictable, but careful preparation and adaptability will be critical in navigating these economic shifts.