The proceedings of the five-member committee looking into the three petitions asking for the removal of Chief Justice Gertrude Torkornoo from office should be televised live, a former Speaker of Parliament, Professor Aaron Mike Oquaye, has said.

According to him, even though Article 146(8) of the 1992 Constitution states clearly that hearing of petitions of such nature should be held in camera, the matters involving Chief Justice Torkornoo are already in the public domain and have generated public interest.

To him, it was therefore prudent to allow the proceedings to be televised live so that there could be openness.

“Justice emanates from the people,” he said. “If justice belongs to the people, how can they be shut out from knowing what is going on? The process belongs to them,” he said in a television interview with Joy News, aired on Thursday.

According to the political scientist and lawyer, an in-camera hearing of this matter, considering the political interests at stake as of now, could undermine public confidence in Ghana’s judiciary.

Prof. Oquaye likened a secret hearing to hiring a labourer who refuses to let the farm owner inspect the work. “Would that be reasonable?” he asked. “Justice must not only be done—it must be seen to be done.”

He challenged the justification that secrecy protects the dignity of high office. “The Chief Justice has already been named. The matter is public. So what are we protecting?”

Prof. Oquaye insisted that the accused should be given the option of a public hearing.

“Why shouldn’t she be able to say, ‘Let the people of Ghana hear my case’?” he asked.

Laying a foundation for why he was suggesting that the proceedings should not be in-camera in line with Article 148(8), Prof. Oquaye, invoked both jurisprudence and history to underscore his argument.

He referenced the British Magna Carta and Ghana’s past with secretive tribunals that denied accused persons the chance to face their accusers.

“We all know the history of this country,” he said. “People were blindfolded and pushed into dark rooms. That was the past. We must not repeat it,” he said.

He called for a Supreme Court pronouncement to clarify the constitutional tension between Article 146(8), which mandates private hearings, and Article 19, which guarantees the right to a fair and public trial.

Prof. Oquaye also cited historical examples of judges and lawyers being targeted for unpopular rulings, warning against systems that enable politically motivated justice.

When asked whether he would personally appear before a secret committee if in Chief Justice Torkornoo’s position, Prof. Oquaye was clear: “No. I would not appear. You put me in a room, come out, and pronounce judgment? I don’t trust that.”

He stressed that his concerns were constitutional, not political, and urged Ghanaians to protect the integrity of the country’s judicial process.

“This is the first time a sitting Chief Justice has been taken to court. Let’s do it right. Let the process be open. Let the people see justice in action.”

3 petitions

Following the establishment of a prima facie case in three petitions asking that Chief Justice Torkornoo should be removed from office for stated misbehaviour and misconduct, President John Dramani Mahama has suspended her and formed a five member committee of inquiry in line with Article 146(6) of the Constitution.

By Benjamin A. Commey

Accra, May 9, GNA – Mr. Samuel Nartey George, Minister of Communication, Digital Technology and Innovation, has urged the private sector to support the government’s digital agenda to maximise Ghana’s technological and economic potential.

Speaking at the launch of the 2025 Ghana Communication Technology University (GCTU) Alumni Homecoming and Fundraising in Accra, he stressed the need for proactive decisions to harness digital transformation for socio-economic development.

“Our world is undergoing rapid digital transformation, and the past few decades have shown us the undeniable role of technology in every aspect of our life, from commerce to agriculture, to governance, to health, education, and security,” he said.

The event was on the theme “Celebrating Legacy, Embracing the Future of Technology.”

Mr George reaffirmed the government’s commitment to implementing policies that fostered innovation, enhanced digital skills, and promoted inclusive adoption of technology.

He cited initiatives such as the National Digital Agenda, e-governance platforms, and digital skills training programmes like One Million Coders and Girls in ICT, designed to equip Ghanaians, especially the youth, for global digital competitiveness.

“His Excellency President John Dramani Mahama’s vision is not for Ghana to be a bystander in this fourth Industrial Revolution; it’s for us to play a critical leading role,” he said.

However, the minister emphasised that realising the full potential of the digital agenda required the active participation of the private sector and academia.

“…the responsibilities do not lie with government alone. The private sector, academia, and alumni associations such as this one that we’re honouring today play a critical role in building a strong and innovative technological ecosystem,” he stated.

Mr George urged Ghanaians to embrace technological advancements, including artificial intelligence, cybersecurity, blockchain, big data, and cloud computing, to secure a place in the future industrial revolution.

“These are not just buzzwords; these are the fundamental pillars of the next Industrial Revolution, which is underway,” he added.

The Minister urged GCTU alumni to lead mentorship programmes, invest in tech startups, and contribute expertise to national development.

“Together, we can build a Ghana that is not just a consumer of technology but a producer of cutting-edge digital solutions,” he said.

Professor Ebenezer Malcalm, Acting Pro-Vice Chancellor of GCTU, said the university was striving to become a global leader in research and technology-driven education.

“The GCTU Act, which confirms the university’s public status, mandates it to provide state-of-the-art technology-oriented and industry-relevant programmes in ICT and related fields to support student and national development,” he explained.

Prof. Malcalm urged the minister to include GCTU in the One Million Coders programme, as it was Ghana’s national ICT university fostering technology-driven education.

“We also appeal to your outfit to consider us for the Huawei training for tertiary institutions. Honorable Minister, any other digital or technology programme that will benefit this institution, we welcome that initiative,” he added.

Ms. Magdalene Lamptey, GCTU Alumni President, said the association had made significant progress since its establishment a year ago.

These include its registration with the Registrar of Companies, the establishment of a bank account for transparency and financial management, and the unveiling of a unique logo symbolising unity, vision, and legacy.

Currently, the association has begun its major project—the development of a modern engineering and IT laboratory—to provide hands-on learning for students.

“This initiative aligns with our vision to give back meaningfully and ensure that our alma mater remains a leading institution in science and technology education,” Ms. Lamptey stated.

She urged all alumni to support the cause to ensure its success.

GNA

KAS

US Embassy in Ghana issues 25,000 visas in 2024

The US Embassy in Ghana has announced that in 2024, it approved 25,000 out of 61,000 visa applications from Ghanaians seeking to travel for work, study, or leisure in the United States.

Speaking during a Consular Media Day on Friday, May 9, 2025, Consular General Elliot Fertik reaffirmed the Embassy’s dedication to providing a transparent and stress-free travel experience for Ghanaians.

“We continue to welcome visitors from Ghana who are interested in studying, investing, or doing business in the U.S. Last year, we issued 25,000 visas to Ghanaians. However, it is important to understand that those entering the US must comply with our laws,” Fertik said.

Although the embassy has not publicly detailed the reasons behind the high denial rate, visa rejections are often attributed to incomplete documentation, failure to meet eligibility criteria, or suspicions of immigrant intent.

“We want to make sure Ghanaians know how to apply for visas correctly and are clear on what is expected of them during the application process,” he emphasised.

Fertik also addressed the US government’s firm stance on illegal immigration.

He said, “The U.S. has zero tolerance for illegal immigration. Those who violate the rules will face consequences, including visa refusal or an outright ban from entering the country.”

He further highlighted ongoing efforts by the Embassy to enhance the visa application process, focusing on transparency and customer experience.

“We’ve made several improvements to ensure a smoother experience for applicants. The Department of State’s top priority is the safety of U.S. citizens abroad, as well as assisting those in need while overseas,” Fertik added.

SP/MA

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By Maxwell Awumah

Ho, May 9, GNA – A team of McGill University researchers has developed a cost-effective, high-throughput technology for detecting nanoplastics and microplastics in the environment.

These particles are pervasive, posing health and environmental risks, yet detecting them at the nanoscale has been difficult.

The 3D-printed HoLDI-MS (hollow-laser desorption/ionization mass spectrometry) test platform overcomes the limitations of traditional mass spectrometry by enabling direct analysis of samples without requiring complex sample preparation.

The researchers say it also will work for detection of waterborne plastic particles.

Chemistry Professor Parisa Ariya, who led the study published recently and shared with the Ghana News Agency said “With HoLDI, we provide a method that is effective, quantitative, highly accurate and affordable, making it accessible to researchers worldwide,”

“It requires little energy, is recyclable and costs only a few dollars per sample.”

The new method will also advance international co-operation in fighting plastic pollution, in alignment with calls by the United Nations Environment Programme to improve methods, the researchers say.

“Until now, there have been no established universal protocols for nanoplastic detection within the complex environment,” Ariya said.

“This technology allows us to pinpoint the major sources of nano and microplastics in the environment,” she said.

“More importantly, it enables data comparison and validation across laboratories worldwide, a crucial step toward harmonizing global research on plastic pollution.”

As part of their study, the researchers identified polyethylene and polydimethylsiloxanes in indoor air, and polycyclic aromatic hydrocarbons in outdoor air.

This work was funded by Natural Sciences and Engineering Research Council of Canada (NSERC), the Canadian Foundation for Innovation (CFI) and National Research Council Canada (NRC).

Affordable, efficient, HoLDI-MS will facilitate global monitoring of plastic pollution, the researchers said.

GNA

MA/GRB

Fancy Gadam

Ghanaian musician Ahmed Mujahid Bello, popularly known as Fancy Gadam, is aiming to make history with Shatta Wale at his upcoming concert.

The Aliu Mahama Sports Stadium in Tamale on June 8, 2025, would host the “1Don” concert featuring the pride of Northern music, Fancy Gadam, and the award-winning Dancehall musician Shatta Wale.

In an interview with GNA Entertainment, Fancy Gadam expressed excitement about hosting Shatta Wale in Tamale, predicting a massive show.

“This is the first time I am playing together with Shatta Wale in Tamale, and I just can’t wait for this day which will be memorable. It is going to be fun, and you can expect fans from the Upper East, Upper West, North East and wherever around the country to witness history.

“It has been a while since Shatta Wale performed in the Northern Region, and doing a concert with him for the first time makes me happy. I can’t wait to see the whole stadium filled to its rafters,” said Fancy Gadam.

The concert is being presented by 5M Music, and regular tickets cost GH¢50, while VIP tickets are selling for GH¢100.

Other artistes billed to perform at the concert would be announced in the coming days.

GNA

US Embassy in Ghana issues 25,000 visas in 2024

The US Embassy in Ghana has announced that in 2024, it approved 25,000 out of 61,000 visa applications from Ghanaians seeking to travel for work, study, or leisure in the United States.

Speaking during a Consular Media Day on Friday, May 9, 2025, Consular General Elliot Fertik reaffirmed the Embassy’s dedication to providing a transparent and stress-free travel experience for Ghanaians.

“We continue to welcome visitors from Ghana who are interested in studying, investing, or doing business in the U.S. Last year, we issued 25,000 visas to Ghanaians. However, it is important to understand that those entering the US must comply with our laws,” Fertik said.

Although the embassy has not publicly detailed the reasons behind the high denial rate, visa rejections are often attributed to incomplete documentation, failure to meet eligibility criteria, or suspicions of immigrant intent.

“We want to make sure Ghanaians know how to apply for visas correctly and are clear on what is expected of them during the application process,” he emphasised.

Fertik also addressed the US government’s firm stance on illegal immigration.

He said, “The U.S. has zero tolerance for illegal immigration. Those who violate the rules will face consequences, including visa refusal or an outright ban from entering the country.”

He further highlighted ongoing efforts by the Embassy to enhance the visa application process, focusing on transparency and customer experience.

“We’ve made several improvements to ensure a smoother experience for applicants. The Department of State’s top priority is the safety of U.S. citizens abroad, as well as assisting those in need while overseas,” Fertik added.

SP/MA

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Richard Gyan-Mensah, Deputy Minister of Energy and Green Transition

Deputy Minister for Energy and Green Transition, Richard Gyan-Mensah, has assured the public of the government’s commitment to transforming the energy sector through bold policy reforms aimed at accelerating access to affordable electricity.

Speaking on behalf of the Minister for Energy and Green Transition, Deputy Minister Richard Gyan-Mensah outlined the government’s vision to provide electricity that is not only widely accessible but also affordable and environmentally sustainable.

Addressing a high-level seminar jointly organised by the International Growth Centre (IGC) and the Centre of Excellence for Public Utilities Regulation (CEPUR), the Deputy Minister noted that Ghana has made significant progress in its national electrification agenda, particularly in expanding access to underserved areas.

“Electricity is the fulcrum around which industrial transformation and daily life revolve. Ghana has made significant progress in this space, boasting a national electrification rate of 89.03%. Urban areas enjoy a 91% connection rate, but rural access still lags at 50%, underscoring the need for targeted and inclusive energy policies,” he said.

Held under the theme “Towards an Affordable and Sustainable Electricity Sector for Inclusive Growth,” the seminar brought together policymakers, regulators, private sector actors, and energy experts to tackle one of Ghana’s most urgent development priorities.

Gyan-Mensah also emphasized that enhancing the affordability of electricity remains a key priority for the government.

He explained that the government, in collaboration with the Public Utilities Regulatory Commission (PURC), is working to implement a balanced tariff system that allows utilities to recover operational costs while protecting vulnerable consumers.

He further disclosed that the Ministry had reviewed the previous administration’s implementation of the Cash Waterfall Mechanism, a move he said has “significantly improved transparency in revenue collection and allocation.”

On universal access, the Deputy Minister acknowledged the challenges of reaching hard-to-access communities.

He revealed that over 200 islands and more than 2,000 communities along the Volta Lake remain disconnected from the national grid.

He added that the government is designing a targeted electrification program to address these gaps.

Gyan-Mensah also highlighted the government’s Green Transition policy, which aims to increase renewable energy penetration to 10% by 2030.

“The Ministry of Energy and Green Transition’s policy places emphasis on renewables and alternative energy as sources of power to complement conventional power. It is the government’s policy to scale up renewable energy penetration by 10% by 2030. We are encouraging increased private sector investment in utility, scale solar and wind energy projects,” he stated.

He concluded by calling on all stakeholders, including government, regulators, the private sector, and civil society, to work together to “keep the lights on and power our industries.”

MA

The New Patriotic Party (NPP) has described the first 120 days of President John Dramani Mahama’s government as an uninspiring one that is laced with failed promises and retardation across the various sectors.

Apart from being accused of what they referred to as “executive lawlessness”, the party also said President Mahama was superintending over a government that preached inclusiveness but was practising divisiveness.

At a press conference held at the NPP headquarters in Accra, barely 12 hours after President Mahama delivered a favourable verdict on his first four months in office, the NPP stressed that the reset agenda promised by the NDC had become a breakdown of the governance system and businesses.

The Minority Leader in Parliament, Alexander Kwamina Afenyo-Markin, who addressed the press, accused the President of exercising “executive lawlessness”, leading to the sacking of numerous civil servants and replacing them with persons affiliated with the NDC.

“We now have two Ghanas — one for the NDC and one for other Ghanaians. This was not the reset President Mahama promised Ghanaians, he stressed.

Among the key issues he raised as constituting the basket of failed promises were failure to decisively deal with illegal mining, the resurgence of power outages, failure to implement the 24-hour Economy policy and failure to reduce import duties.

The Minority Leader expressed reservations about what he described as the gradual collapse of businesses, weakening of the private sector, attack on the Judiciary and fragile security in the country. 

Galamsey

During the peak of the campaign for the December 7, 2024, election, there was a heightened call by environmentalists, CSOs, the Media Coalition Against Galamsey and some labour unions for President Nana Addo Dankwa Akufo-Addo to declare a state of emergency over the galamsey scourge.

Environmental activists and other stakeholders also mounted pressure on the NPP administration to revoke the law that permits mining in forest reserves (L.I 2462), but that did not happen. 

In the heat of the campaign, the NDC presidential candidate (President Mahama) promised to repeal L.I 2462 when given the mandate.

He also promised to ban mining in forest reserves and take steps to restore the country’s degraded landscape.

At the press conference, Mr Afenyo-Markin said it was worrying that after 120 days in office, President Mahama had failed to keep his promise on dealing with galamsey.

“Illegal mining has flourished in the full glare of the President; foreigners involved in galamsey are deported instead of being prosecuted; he criticised former President Nana Addo Dankwa Akufo-Addo for not doing much about galamsey, but he is now giving excuses.

He has failed to declare a state of emergency,” he said. 

Dumsor

Additionally, he said that after inheriting a stable power supply, President Mahama had plunged the country into darkness, although he promised to improve the power sector.

“We have witnessed persistent power outages these 120 days of President Mahama and we do not even know where our Minister of Energy and Green Transition is.

We are using torchlights to search for our Energy Minister, but we cannot find him,” he said.

The Minority Leader said the erratic power supply situation in the country has forced some businesses to fold up, while others were also suffocating.

Mr Afenyo-Markin also said the 24-hour Economy policy the President promised Ghanaians had become a mirage.

He said instead of building on the one district, one factory (1D1F) industrialisation policy the previous government had implemented, President Mahama had abandoned it and was also not implementing the 24-hour Economy policy.

Education and social policy

The Minority Leader said that although President Mahama made a plethora of promises in the education and social sectors, not much had been done in redeeming those commitments.

He cited commitments such as no academic fee for all first-year tertiary students, free tertiary education for persons with disability and distribution of free sanitary pads to school girls as some of the failed promises.

“These were headline-grabbing pledges intended to ease burdens on students and parents. But how many of these have been truly fulfilled?

The reality is stark: not a single first-year university student has received fee-free education under this policy so far,” he said. 

Lean government

Mr Afenyo-Markin also alleged that despite the promise by President Mahama to run the leanest and most efficient government, more persons had been appointed to political positions than expected.  

“This government has gone to great lengths to create the impression that it is cutting down on expenditure by appointing fewer ministers.

They parade this move as an act of prudence and fiscal discipline, but in reality, it is nothing more than political theatre designed to deceive the Ghanaian people,” he said.

He indicated that “the supposed reduction in ministerial appointments had little to no impact on the ballooning cost of government.”

The U.S. Embassy in Ghana has revealed that it issued 25,000 visas to Ghanaian applicants in 2024, out of 61,000 applications received.

This was announced during a Consular Media Day held on May 9, 2025, an event aimed at clarifying U.S. visa processes and promoting legal travel procedures.

Speaking at the event, Consular General Elliot Fertik stressed the importance of adhering to U.S. immigration laws, warning against illegal visa practices and unauthorized immigration.

“We continue to welcome visitors from Ghana who are interested in studying, investing, or doing business in the US. Last year, the US embassy issued 25,000 visas to Ghanaians for work, study, or visit to the US. But with entry to the US, visa applicants or holders must follow our laws,” Fertik stated.

He cautioned that individuals who engage in illegal activities risk visa refusals, revocations, or even permanent bans.

“The US has zero tolerance for illegal immigrants. Those who break the rules will face the law, including visa refusal, or upright ban from entering the US,” he added.

Read Also: Ghana cedi soars: Speaker Bagbin optimistic over currency’s gains against US dollar

The Embassy reiterated its ongoing efforts to make the visa process more transparent and user-friendly.

“We want to make sure that Ghanaians understand the proper way for applying for visas and what is expected of them when applying for visas,” Fertik said.

“Visitors to the US must ensure that they obey the laws and regulations. I am sure you have noticed some of the improvements we have made to improve customer experience.”

He concluded by highlighting the dual mission of the U.S. government—to facilitate legal travel while safeguarding its borders.

“We also have the mandate of ensuring our borders are protected by protecting the US against illegal immigration by enforcing the laws,” he emphasized.

 Major Gen­eral Richard Addo Gyane was yester­day officially pulled out the Kofi Annan International Peacekeeping Training Centre (KAIPTC) in Accra, ending his tenure as Commandant of the centre.

He made history in 2022 when he was appointed as the Commandant of the Centre, becoming the first non-infantry army officer to hold the position.

In his farewell address, Maj. Gen. Gyane spoke about the importance of a smooth leadership transition.

He encouraged the new leader­ship to embrace flexibility while standing firm on core values.

According to him, it was crucial for leaders to be opened to new ideas but not lose sight of what defines the institution.

Maj. Gen. Gyane also urged the new leadership to involve every­one in the process of growth and improvement, saying that every individual had something valuable to offer, and by tapping into “these unique strengths, the organization can continue to thrive.”

He said leadership was not about doing everything alone, but about harnessing the power of teamwork and cooperation.

He noted that loyalty to leader­ship was important, but it should not come at the cost of staying silent when things were not going well and advised the youth to speak up constructively, as this was one of the ways institutions grow stronger.

Maj. Gen. Gyane stressed that the interests of the Centre and the people it serves should always come before personal comfort.

He encouraged the incoming leadership to continue seeking better ways to improve services and never stop innovating.

He praised the existing culture at KAIPTC, especially the clean and organised environment, and called on the new leaders to preserve these positive aspects.

The outgone commandant said a clean space reflected discipline and respect, both of which were essen­tial to the Centre’s mission.

He highlighted that success de­pended on collective effort, adding that no one person could achieve the Centre’s goal, but with a united team, the possibilities were endless.

Maj. Gen. Gyane urged staff and management to draw strength from each other and focus on the Centre’s shared purpose.

He also outlined how inclusive leadership could help bring out the best in everyone, adding that leaders must listen to all voices, value every team member’s strengths, and make sure everyone feels their contribu­tion matters.

This approach, he said, built trust and encouraged people to give their best, pointing out that communica­tion was key to success.

Major Gyane encouraged the new leadership to promote open conversations and be transparent in their dealings. He believes that when people feel free to talk about challenges, better solutions could be found.

He also spoke on the importance of personal development, urging team members to use their minds to solve problems and grow.

He warned against using a one-size-fits-all approach and encouraged the leadership to allow individuals to develop in their own unique ways.

He noted that KAIPTC’s mission should remain the guiding light for everyone, encouraging the staff to give the new leadership the needed support.

He thanked all those who sup­ported him during his time in office and expressed confidence in the future of KAIPTC under its new leadership.

 BY AGNES OPOKU SARPONG

The Writer

The global economic landscape in early 2025 is characterized by a delicate balancing act. As highlighted in the International Monetary Fund’s (IMF) January 2025 World Economic Outlook (WEO), while global growth is projected to remain steady at 3.3 percent in 2025 and 2026, the near-term outlook presents divergent paths. The anticipated easing of monetary policy in advanced economies, driven by declining inflation, offers a glimmer of hope for emerging markets and developing economies.

However, persistent inflationary pressures, particularly within the services sector, and geopolitical uncertainties necessitate a cautious approach to monetary policy across the globe.

The new Governor of the Bank of Ghana (BoG), Dr. Johnson P. Asiama spearheaded his first MPC meeting with the focus on achieving macroeconomic stability. Governor Asiama in his press release indicated a hike of the monetary policy rate (MPR) by majority decision to re-anchor the disinflation process. According to the Governor, the committee will reassess the scope for a gradual easing in the policy stance.

The recent decision by the BoG to raise its MPR by 100 basis points from 27 percent to 28 percent – the first time since September 2024 – has sparked debates. While the general expectation prior to the MPC meeting was for easing, the hike is a prudent and justifiable measure aimed at reinforcing macroeconomic stability. This move comes at a time when Ghana, like many emerging economies, faces a complex interplay of domestic and external economic forces.

While inflation has witnessed a marginal decline to 22.4 percent in March 2025 from 23.8 percent in December 2024, it remains significantly above the central bank’s medium-term target band of 6-10 percent. This, coupled with concerns about fiscal policies, liquidity overhang, and prevailing geopolitical risks, provides a strong rationale for the MPC’s decision. The hike signals a firm commitment to re-anchor inflation expectations and build resilience against potential future price pressures.

The global disinflation process, while underway, faces potential headwinds. Renewed inflationary pressures in the services sector could interrupt anticipated monetary policy easing in most advanced economies, with implications for global financial conditions and capital flows to emerging markets. In this environment, Ghana’s proactive stance to tighten monetary policy serves as a crucial buffer against potential external shocks and helps to maintain investor confidence.

The amplifying impact of the trade war

The global trade landscape has become increasingly fractured due to recent trade wars, primarily involving the United States, China, and the European Union. These disputes, characterised by escalating tariffs and retaliatory measures, have several consequences for economies worldwide, including Ghana.

Key Impacts on Ghana:

1. Higher import costs: The trade war increases input costs for Ghanaian businesses. For instance, additional tariffs on exports to the US are temporarily suspended, but the larger issue remains the disruption in global supply chains, increasing the cost of imports.
2. Weakened demand: Global trade slowdowns can harm Ghana’s exports, especially commodities like cocoa, gold, and oil. A slower global economy means lower demand for these key exports.
3. Exchange rate volatility: Increased global uncertainty often leads to capital flight, impacting the Cedi. The MPR hike aims to make local assets more attractive, stabilizing the exchange rate.
4. AGOA implications: Ghana’s access to the African Growth and Opportunity Act (AGOA) market has been affected, particularly by the imposition of new tariffs on exports to the US. This escalates the urgency for domestic economic resilience.

The Need To Safeguard Economic Stability

In an era of heightened global uncertainty from trade wars, geopolitical tensions, and volatile commodity prices, the need for countries to proactively safeguard their economic stability has become paramount. Ghana’s recent experience with high inflation and exchange rate depreciation underscores this necessity.

1. Building resilience against external shocks: A stable macroeconomic environment enhances a country’s ability to recover from external shocks. A higher MPR contributes to this stability by anchoring inflation expectations and reducing vulnerability to currency depreciation.
2. Maintaining investor confidence: In an uncertain global economic landscape, investors prioritize stable and predictable economies. A decisive monetary policy action like the MPR hike signals the Bank of Ghana’s commitment to price stability and macroeconomic prudence, which can help maintain and attract foreign investment.
3. Preventing a vicious cycle: High inflation and a depreciating currency can create a vicious cycle, eroding purchasing power and further fueling inflation. A proactive monetary policy response aims to break this cycle and establish a foundation for sustainable growth.
4. Preserving long-term growth prospects: While short-term tightening might moderate growth, long-term sustainable growth is predicated on a stable macroeconomic environment. By tackling inflation now, the Bank of Ghana is laying the groundwork for a more predictable environment for businesses and the economy to expand.

Implications For Businesses

The increase in the MPR will have implications for businesses operating in Ghana. The most immediate impact will be a likely rise in borrowing costs. Commercial banks use the MPR as a benchmark for lending rates, which will likely rise, making credit more expensive.

1. Increased operational costs: Businesses with existing loans will face higher repayment burdens.
2. Delayed or scaled-down investment plans: Higher borrowing costs may deter businesses from undertaking new projects.
3. Challenges for SMEs: SMEs, which rely more on external financing, may find it harder to access affordable credit.
4. Potential pass-through to consumers: Businesses may pass on increased borrowing costs through higher prices.

However, this short-term pain is intended to pave the way for longer-term stability. A stable macroeconomic environment can reduce the cost of imported inputs and benefit businesses in the long run.

Implications For The General Economy

The MPR hike will also have broader implications for the economy:

1. Slower inflation: The objective of the rate hike is to dampen demand, mop up excess liquidity, and curb inflationary pressures.
2. Exchange rate stability: A higher MPR can make Ghana’s assets more attractive, increasing demand for the Cedi and contributing to stability.
3. Impact on household consumption: Higher loan interest rates will increase the cost of borrowing for households.
4. Increased savings: Higher interest rates could incentivize households to save more.
5. Potential for slower growth in the short term: Monetary tightening could lead to a temporary slowdown in activity. However, this is a trade-off the central bank deems necessary for long-term price stability and growth.

Considering the impact of the recent trade war and the need for Ghana to safeguard economic stability in this global context, the Bank of Ghana’s decision to increase the monetary policy rate to 28 percent is a considered response. While this hike will present short-term challenges, it is a necessary step to anchor the disinflation process and build resilience.

Businesses must adapt to this environment, and the success of this policy depends on complementary fiscal discipline and reforms. Ghana’s MPR adjustment reflects a commitment to navigating these complexities with a focus on long-term economic well-being.

>>>the writer is a Financial Economist and Data Analyst. His areas of interest include financial market, Ethics, Sustainability, Financial Literacy, AI and data analytics. He can be reached via [email protected]

By Emmanuel Dankwah