The International Monetary Fund (IMF) projects global public debt will reach 100% of worldwide GDP by 2030, surpassing pandemic-era levels and threatening severe economic instability, particularly for developing economies like Ghana.

IMF Managing Director Kristalina Georgieva issued the warning during a conference on public debt transparency, stressing that urgent reforms are needed to avert systemic risks.

“By the end of the decade, we would owe as much as we generate in one year—a scenario worse than the COVID-19 peak,” Georgieva stated. While advanced economies face challenges, emerging markets bear the brunt, with debt servicing costs crowding out critical investments in healthcare, education, and infrastructure.

Ghana exemplifies this strain: after defaulting on external debt in 2022, the country embarked on a rigorous IMF-backed restructuring program. Though showing signs of recovery, rising global interest rates and reduced concessional financing threaten progress.

Georgieva highlighted initiatives like the Global Sovereign Debt Roundtable, which aims to streamline coordination between creditors and debtors, alongside calls for enhanced debt transparency and legal frameworks. “Without action, debt-fueled vulnerabilities could trigger another crisis,” she cautioned, noting shrinking fiscal space amid growing development needs.

For Ghana, where debt repayments consume significant revenue, balancing creditor obligations with public services remains precarious. The IMF’s push for systemic reforms seeks to mitigate these pressures, but experts warn delays could deepen disparities, leaving developing nations most vulnerable.

Abossey Okai Spare Parts Dealers Association have been tasked to reduce prices of goods

The Abossey Okai Spare Parts Dealers Association has directed its members to reduce the prices of spare parts to reflect the recent gains of the Ghanaian cedi.

In a press release dated Sunday, May 18, 2025, and sighted by GhanaWeb Business, the association stated that the price reduction is aimed at providing relief to customers and supporting the government’s broader efforts to stabilise the economy and reduce the cost of living.

This announcement comes on the back of the consistent appreciation of the cedi against the US dollar on both the interbank and forex markets.

According to the Chairman of the Association, Henry Okyere Jnr, the government’s decisive actions in strengthening the local currency and restoring macroeconomic stability are commendable, hence the association’s intention to respond accordingly.

The association emphasised that the move reflects its commitment to supporting national economic recovery efforts while ensuring that spare parts remain affordable for consumers.

Meanwhile, Okyere Jnr has appealed to all members to comply with the directive on price adjustments, reinforcing their commitment to fair pricing and market stability.

SP/MA

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Africa possesses vast potential for innovation, but its ability to leverage this creativity into sustained economic growth is hampered by a lack of scalable systems and supportive ecosystems.

This was the key message from Ghana’s former Vice President, Dr. Mahamudu Bawumia, speaking at the Cambridge Africa Business Conference on Saturday, May 17, 2025.

Addressing the conference themed ‘Africa’s Digital Transformation: Building Resilient Economies Through Innovation,’ Dr. Bawumia was emphatic, stating, “Africa does not lack innovation. We lack systems that scale it. We do not lack ideas. We lack ecosystems that reward and retain them. We do not lack ambition. We lack access to capital, infrastructure, and trust.”

He elaborated that despite a wealth of creative minds and entrepreneurial spirit, the absence of crucial supporting structures like reliable infrastructure, sufficient access to capital, and a strong culture of trust impedes the growth and sustainability of African ventures.

Dr. Bawumia cast a vision of a future where African innovations are not isolated exceptions but integrated components of the global economy. He presented scenarios such as a tech start-up in Nairobi effortlessly serving clients in São Paulo, or a shea butter cooperative in Tamale selling directly to buyers in Tokyo, potentially utilizing tools like blockchain for traceability.

He stressed that African innovations must become the expected norm. To achieve this, he urged African nations to prioritize the development of robust systems and nurturing ecosystems capable of scaling innovations and unlocking the continent’s full economic potential.

Turning his focus to Ghana, Dr. Bawumia hailed the country’s significant strides in digital financial services, identifying it as the fastest-growing mobile money market across the African continent. He credited the implementation of mobile money interoperability (MMI) as a transformative “game-changer” in Ghana’s financial landscape.

Recounting the policy’s origin, he explained, “We asked the questions: why can’t we make it possible to send mobile money across different telephone companies and also why can’t the mobile money account function like a bank account by making it interoperable with bank accounts? The answer to these questions was the implementation of groundbreaking mobile money interoperability (MMI) across all banks and telcos.“

He noted that the introduction of MMI now allows Ghanaians to move funds seamlessly between mobile money accounts, regardless of the service provider, and crucially, between mobile money wallets and traditional bank accounts. This interoperability, he argued, has effectively transformed mobile money wallets into functional bank accounts, drastically expanding access to financial services nationwide.

Dr. Bawumia proudly declared, “Ghana is the first country in Africa and one of a very few in the world to achieve this type of interoperability between bank accounts and mobile wallets.”

Dr. Bawumia’s address stated the dual challenge of creating supportive environments for innovation across Africa while highlighting Ghana’s specific success story as a model for digital transformation.

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

Government is set to transfer key aspects of the Electricity Company of Ghana’s (ECG) operations – specifically power distribution and revenue mobilisation – to a private sector partner as part of a broader strategy to improve operational efficiency and curb financial losses.

Deputy Minister of Energy and Green Transition Richard Gyan-Mensah disclosed the plan during an ECG Vendors Forum held in Accra.

He clarified that the initiative is not a full privatisation of ECG but a private sector participation (PSP) model designed to attract private investment, introduce innovation and stem inefficiencies.

“We are partnering with the private sector to build a resilient energy industry that supports economic growth,” Gyan-Mensah stated. “However, government will ensure Ghanaian consumers are not short-changed.”

The move comes amid ongoing challenges in the energy sector, including widespread power theft and persistent revenue leakage.

According to the minister, the new PSP arrangement is expected to plug these losses by bringing in the technical expertise and operational rigour of the private sector.

To oversee a seamless transition, the ministry has constituted a technical committee to assess proposals from interested private entities and recommend the most suitable partner.

Gyan-Mensah stressed that while the PSP approach offers solutions, success will depend on collaboration between public and private stakeholders.

Digital innovation in revenue collection

The ECG Vendors Forum brought together over 350 vendors, ECG officials and representatives from digital technology partner TextGenesys Ltd. (TGL Systems) – the company behind ECG’s digital vending platform ‘Unfield Vending’.

The platform, developed in partnership with GCB Bank, has modernised power credit purchases; allowing vendors to self-redeem commissions while enabling ECG to reconcile payments in real-time.

The system is credited with improving transparency and simplifying bill payments for millions of customers.

TGL Systems Managing Director Jeremiah Brown-Coleman highlighted the technology’s significance in addressing ECG’s long-standing revenue collection issues.

“This digital solution simplifies the revenue collection process and ensures secure, real-time reconciliation. Most importantly, it strengthens ECG’s revenue collection mechanisms,” he said.

ECG Managing Director Julius Kwame Kpekpena lauded the forum as a pivotal moment in the transformation of ECG’s operational landscape.

“This marks a new chapter of inclusivity, professionalism and innovation within ECG’s revenue collection ecosystem,” he noted.

Government maintains that the PSP model will be implemented with utmost care to ensure it benefits consumers while advancing Ghana’s broader energy transition and economic development agenda.

Communities in Ghana’s Upper East and Upper West regions are expected to benefit from a set of interventions under the newly launched BORDER Project, spearheaded by World Vision Ghana.

The initiative, which aims to promote development and strengthen regional stability, is being implemented in collaboration with RACED Ghana and with funding support from the PATRIP Foundation.

The project is targeting some of the most vulnerable areas along Ghana’s northern frontier, including Zini, Fielmo, and the Zini Refugee Camp in the Sissala West District; Bansi and Issakatinga in the Binduri District; and Tarikom, along with the Tarikom Refugee Camp in the Bawku West District.

These communities were selected due to their growing exposure to climate shocks, severe food insecurity, environmental degradation, and an increasing influx of refugees from neighbouring Burkina Faso.

The strain on already limited resources has intensified socio-economic pressures, heightening the risk of social tensions and threatening local peace and cohesion.

A press statement issued on Friday, May 16, 2025, revealed that the BORDER Project will directly benefit 19,219 individuals, comprising 13,454 Ghanaians and 5,765 Burkinabe refugees and is expected to indirectly impact an additional 33,657 residents across the five target communities and two refugee settlements.

Key interventions under the BORDER Project include the provision and rehabilitation of solar-powered water systems, construction of biofill ecological sanitation facilities for homes, schools, and health centres, refurbishment of healthcare facilities, with a focus on maternal and child health, establishment of drip irrigation systems to support year-round farming and training of farmers in climate-smart agricultural techniques.

It also seeks to promote sustainable land use through Community Resource Management Areas (CREMAs) and build capacity for traditional leaders, local authorities, and security personnel in peacebuilding and conflict resolution.

The BORDER Project is aligned with Ghana’s National Development Plan 2030, the United Nations Sustainable Development Goals (SDGs), and the Gulf of Guinea Joint Response Plan. By investing in essential infrastructure and building the capacity of local communities, the initiative seeks to trigger a lasting ripple effect of peace, prosperity, and resilience across Ghana’s border regions and the wider West African sub-region.

Acting CEO of the FWSC, Dr George Smith-Graham

The Fair Wages and Salaries Commission (FWSC) has proposed the introduction of an hourly wage system across all sectors as a means of enhancing earnings for casual workers and promoting fairer compensation practices.

Dr George Smith-Graham, Acting Chief Executive Officer of the FWSC, made this suggestion during a familiarisation visit by the Parliamentary Select Committee on Employment, Labour Relations, and Pensions.

As part of its visit, the Committee also engaged with the National Pensions Regulatory Authority (NPRA) and the Management Development and Productivity Institute (MDPI).

According to Dr Smith-Graham, implementing an hourly wage structure could help formalise informal work arrangements, increase disposable income for low-wage earners, and expand access to social protection.

“If we begin to look at an hourly wage structure, it will allow casual workers to be better compensated for their time and could help reduce income inequalities in the labour market,” he stated.

He added that the approach would bring greater transparency to wage calculations for both employers and employees.

During discussions with the NPRA, officials informed the Committee of existing provisions that allow permanently unemployed individuals aged 50 and above to access their Tier-2 pension funds, subject to employer verification and Labour Department approval.

Chief Executive Officer of the National Pensions and Regulatory Authority (NPRA), Chris Boadi-Mensah also called for a review of Ghana’s retirement age, proposing an increase from 60 to 65 years.

He warned that the current pension system could face long-term financial instability and emphasized the need for reforms to prevent misuse and ensure sustainability.

ID/MA

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RoyalNews360 Blog of Sunday, 18 May 2025

Source: Boateng Kakape Nana

The price of kenkey is said to have reduced in some areas in the country

A Ghanaian man has heaped praises on President John Dramani Mahama after buying a ball of kenkey for GH¢3 at Agyemang Pentecost Junction in Labadi Town.

In a video that has gone viral on X, the man is seen purchasing two balls of kenkey, which were placed in a bowl.

Upon being informed that the price had dropped to GH¢3, he burst into celebration, shouting joyfully and singing while invoking President Mahama’s name in gratitude.

The man expressed deep appreciation to the president for putting measures in place to ensure that food prices became more affordable.

He added that with the current economic rebound, he believed the price of kenkey would soon fall further to GH¢2, with other food items also seeing price reductions.

“A ball of kenkey is GH¢3? John Mahama, Onaapo! Within the next two or three months, it will be GH¢2. God bless you,” he exclaimed.

This reaction comes amid recent appreciation of the cedi against the US dollar.

According to the Bank of Ghana, the cedi is currently trading at a buying price of GH¢12.31 and a selling price of GH¢12.32 to the dollar.

SB/MA

Dr. Omar Farouk Ibrahim, Secretary-General of the African Petroleum Producers Organisation (APPO), has called for a radical reorientation of Africa’s energy policies, stressing that universal access to electricity must become a non-negotiable priority to drive continental development.

Speaking at the 2024 Africa Sustainable Energy Dialogue, he dismissed poverty as the root cause of the continent’s energy crisis, instead blaming systemic leadership failures and misplaced priorities.

“If we commit to making energy accessible to our people, for homes, for industries, everything else will follow,” Dr. Ibrahim declared during the virtual event organized by the Africa Sustainable Energy Center (ASEC). The dialogue, themed “Bridging Africa’s Energy Access Gap: Challenges, Innovations and Path Forward,” convened experts who critiqued Africa’s reliance on exporting 75% of its oil and 45% of its gas while 600 million citizens lack electricity. “The real beneficiaries are not the masses but the elite,” he asserted.

Dr. Alfred Ofosu Ahenkorah, former Executive Secretary of Ghana’s Energy Commission, underscored the role of political commitment, citing Ghana’s leap from 19% electricity access in 1989 to over 87% today. “Access to energy is a matter of leadership. No individual electrifies a country. Government must lead the charge,” he stated.

Panelists dissected structural barriers, from colonial-era infrastructure designed to extract resources rather than serve populations to modern-day corruption and underfunding. Monique Motty of the African Development Bank noted, “We’re navigating systems that weren’t built for us,” while Professor Abubakar Sambo, a former Nigerian presidential energy adviser, described a “complex web” of aging grids, mismanaged subsidies, and policy inertia.

Kweku Andoh Awotwi, Board Chairman of United Bank for Africa-Ghana, highlighted flawed financing models: “Electricity is seen as a social good without sustainability, leading to grid failures.” He criticized the lag in adopting affordable solar solutions due to financially unstable power sectors.

The dialogue concluded with a consensus: technical solutions exist, but political courage is lacking. Participants urged governments to prioritize decentralized renewables, reframe energy access as a fundamental right, and invest in policies centered on public welfare over elite interests.

The Ghana Armed Forces (GAF), in collaboration with the United States Army Southern European Task Force, Africa (SETAF-AF), has successfully concluded Exercise African Lion 2025, with a closing ceremony held at the Air Force Training Command in Tamale on Friday, May 16.

This year’s exercise, which commenced on Monday, May 5, brought together participants from various GAF units as well as military contingents from Benin, Liberia, Togo, and Sierra Leone.

The multinational training event emphasized academic instruction, the Military Decision-Making Process, the Joint Planning Process, and Intelligence, Surveillance, and Reconnaissance (ISR) operations.

Speaking on behalf of the outgoing General Officer Commanding Northern Command, Brigadier General Frank Nartey Tei, the Command Operations Officer, Colonel Frank Gyabi-Abrokwah, highlighted the significance of the exercise.

He stated that African Lion—the largest annual exercise conducted by United States Africa Command (AFRICOM)—aims to enhance interoperability among partner nations and reinforce the U.S. military’s strategic readiness to respond to regional crises.

Col. Gyabi-Abrokwah stressed the importance of continuous training, particularly in light of the ongoing security threats in Northern Ghana and the increasing risk of terrorist infiltration from the Sahel region.

He expressed appreciation to the U.S. Government for its support and urged participants to apply the knowledge and skills acquired to enhance the operational effectiveness of their respective forces.

Lt. Col. Obadiah Brians, the SETAF-AF Team Leader in Ghana, also addressed the gathering and explained that the core objective of Exercise African Lion is to build capacity, improve readiness, and foster stronger cooperation among multinational forces.

He noted that this year’s exercise was conducted across four countries—Morocco, Senegal, Tunisia, and Ghana—and involved over 50 nations and more than 10,000 troops. He added that the exercise reflects their collective commitment to regional security and multinational collaboration.

Lt. Col. Brians thanked the Ghana Armed Forces and the GOC for the opportunity to conduct training in Ghana and congratulated all participants on the successful completion of the exercise.

The ceremony was attended by senior military officials, including Commander of the Air Force Training Command, Air Commodore Richard Danso; Head of GAF Critical Care and Emergency Hospital, Brig. Gen. Percy Annan; Deputy Commanding General of SETAF-AF, Brig. Gen. John A. LeBlanc; as well as staff officers from Army Headquarters and Northern Command.

File photo of fisherman at sea

Kofi Agbogah, the Director of Hen Mpoano, a non-governmental organisation on coastal and marine ecosystems, has expressed fears that Ghana’s fisheries will crash if artisanal fishers are continuously exempted from the closed season.

His reaction followed an earlier announcement by Madam Emelia Arthur, the Minister of Fisheries and Aquaculture, on the cancellation of the participation of artisanal (canoe) fishers from the 2025 closed season, which is expected to be observed by inshore fishers and industrial trawlers.

Mr Agbogah, at a media forum powered by the Ghana Ports and Harbours Authority (GPHA), said the closed season was scientifically based and had the legal backing from the Fisheries Act 2002, Act 625, as a measure to sustain the fisheries in Ghana’s marine waters.

Addressing the issue on “Sustaining Ghana’s Closed Fishing Season: Science, Policy, and the Future of Fisheries,” he noted that over the years Ghana had seen the dwindling of its fish stock, which was threatening it at the brink of collapse.

“Way back in 1996, the total that we landed was around 274,000 metric tonnes, however today, we are hovering around 20-22,000 metric tonnes. This gives reason for some drastic measures to be taken,” he said.

He said the sea needed that rest to replenish, but if fishers continued to fish like that, within the next five to 10 years, the pelagics, which were the mainstay of all coastal economies and the fisheries, would no longer be there.

Mr Agbogah stressed that to conserve the fish in the sea, was to allow them to reproduce, expressing worry that the new directive, meant that the season where they would have to reproduce was the period that the government was asking artisanal fishers to go and fish, which would derail the gains made in the past few years of the closed season.

Mr Agbogah argued that canoe operators harvested about 70 percent of the small pelagics, which were dwindling; therefore, Ghana’s attention should be on the canoe fishers rather than the industrial trawlers.

He said Ghana had become a beacon of the closed season in the sub-region, and it was worrying that while other countries commenced the closed season because of Ghana, the exemption of the artisanal fishers may put advocates in a difficult position to defend the directive.

“The consequences are dire; we are going to lose our fisheries. Fishermen will not have anything to behold, their culture will be thrown to the wind, and poverty will stare everybody in the face.

“Let us remember that about three million Ghanaians directly or indirectly depend on the fisheries, but the value chain and downstream beneficiaries are huge,” he said.

He added that “If they say it is for this year, we will wait and see, but if it continues, we are going to have issues, because the small pelagic is the mainstay of our economy, When canoes land fish at the beach, it goes all the way down to the poor man in the community; it provides food security, national security, job security, nutritional security and so many securities”.

Mr Agbogah observed that if there was enough fish stocks in the ocean, fishermen would not go and beg for jobs from the government, as they were their own employers, stressing that “I am looking at the day that there are no fish and they all march to the government and ask for jobs”.

He stated that Ghana’s fisheries were worth about US$750 million in total or one per cent of the country’s Gross Domestic Product if the nation could bear to lose that.

“The consequences of collapsing the fisheries are something that government will regret, as the pressure on government will be too much. The purpose of the closed season is to ensure that by 2035 we should recover about 90,000 tonnes, and getting to 2040, if we get things right, we should go a lot higher,” Mr Agbogah said.

He said there was a sign of gradual recovery, however if the closed season which allowed the male and female fish to come together to mate was disturbed by fishers, the fishes would be scattered and could not get the chance to be pregnant.

Dr Mahamudu Bawumia is Ghana’s former Vice President

Former Vice President of Ghana, Dr Mahamudu Bawumia, has praised Ghana’s progress in digital financial services, describing the country as “the fastest-growing mobile money market on the African continent.”

Speaking at the Cambridge Africa Business Conference on Saturday, May 17, 2025, Dr Bawumia highlighted the transformative role of mobile money interoperability (MMI) in reshaping Ghana’s financial landscape.

“We asked the questions; why can’t we make it possible to send mobile money across different telephone companies? And why can’t mobile money accounts function like bank accounts by making them interoperable with banks? The answer to these questions was the implementation of groundbreaking mobile money interoperability across all banks and telcos,” he explained.

Dr Bawumia also announced that Ghana is the first country in Africa and among a few globally, to achieve full interoperability between bank accounts and mobile money wallets, marking a major milestone in financial innovation and inclusion.

“Ghana is the first country in Africa, and one of the very few in the world, to achieve this type of interoperability between bank accounts and mobile wallets. The success of this initiative has led to over 90% financial inclusion among Ghana’s adult population, placing the country at the top of Africa’s financial access rankings. Every adult Ghanaian can either get a traditional bank account or a mobile money account that functions like a bank account,” he stated.

He also cited data showing a 40-fold increase in mobile money transactions between 2017 and 2024.

Additionally, Ghana operates a fully interoperable instant payment system and has received international recognition for its progressive mobile money regulations.

Dr Bawumia’s remarks underscored the critical role of innovation and digital infrastructure in building resilient economies and empowering underserved communities.

SP/MA

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The acting Chief Executive Officer of the Fair Wages and Salaries Commission (FWSC), Dr George Smith-Graham, has proposed the introduction of an hourly wage system across all sectors to help improve the incomes of casual workers and bring more fairness into the way people are paid.

Dr Smith-Graham made the proposal on Friday [May 16, 2025], during a familiarisation visit by the Parliamentary Select Committee on Employment, Labour Relations and Pensions to the FWSC, the National Pensions Regulatory Authority (NPRA), and the Management Development and Productivity Institute (MDPI).

He explained that an hourly wage structure could help formalise informal work arrangements, increase disposable income for low-income earners, and improve access to social protection.

He also said the approach would bring more openness into wage calculations for both employers and workers.

“If we begin to look at an hourly wage structure, it will allow casual workers to be better compensated for their time, and could help reduce income inequalities in the labour market,” Dr Smith-Graham said.

At the NPRA, officials briefed the Committee on existing guidelines that allow persons aged 50 and above, who are permanently unemployed, to access their tier-2 pension funds. This is only allowed after formal confirmation by their last employer and approval from the Labour Department.

The Chief Executive Officer of the NPRA, Mr Chris Boadi-Mensah, suggested that Ghana should consider raising the retirement age from 60 to 65.

He warned that the current system may not be financially sustainable in the long term and said a review would help prevent misuse and keep the pension scheme stable.

Meanwhile, the Director General of MDPI, Professor Elijah Yendaw, outlined some of the Institute’s operational challenges.

He mentioned the lack of office space and the limited opportunities for staff training as major concerns.

He added that with better support, the Institute could make useful contributions to the country’s development, given its human resource base and experience.

Chairman of the Committee, Mr Joseph Appiah Boateng, said the visit was intended to examine the work of the three institutions, identify what needs to be improved, and help shape policies to improve how they serve the public.