The Minister for Finance, Dr Cassiel Ato Forson, has announced the establishment of a dedicated Compliance Desk within the Ministry to monitor and enforce adherence to the newly upgraded Public Financial Management (PFM) Act, 2025.

This announcement was made during a meeting with the World Bank Africa team, led by Vice President Ousmane Diagana.

The meeting followed the successful National Economic Dialogue, which was held with strong support from the World Bank.

Addressing the gathering, Dr. Forson stressed the urgent need to tackle fiscal indiscipline, particularly among covered entities that have been awarding contracts without obtaining the legally required commencement certificates.

These practices, he said, have led to serious inefficiencies and budgetary shortfalls.

To curb these issues, a key amendment to the PFM Act now authorises the Ministry of Finance to issue commencement authorisations, marking a significant shift in fiscal oversight.

More importantly, the Ministry is instituting a Compliance Desk that will track and evaluate whether ministries, departments, and other covered entities comply fully with the new law.

The Compliance Desk will also maintain a Compliance League Table, which will publicly rank institutions based on their adherence to financial regulations.

Persistent non-compliance will attract sanctions, the Minister warned, reaffirming the government’s commitment to transparency and accountability in public finance.

“We are determined to ensure that every programme we implement delivers maximum efficiency and impact,” he said. “This is how we build a disciplined and prosperous Ghana.”

Vice President Diagana congratulated the Minister on his recent nomination and praised Ghana’s ongoing fiscal reforms.

He reaffirmed the World Bank’s strong partnership with Ghana, describing the country as a beacon of stability and progress in the region.

The new Compliance Desk is expected to begin operations in the coming weeks.

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.

President John Mahama after assenting to the bill

Introduction

Ghana has witnessed two instances of the abolition of tax on lottery winnings – first in 2017 and more recently in 2025- and in both cases, the process appears to have been marked by legislative challenges.

The recent repeal of the withholding tax on lottery winnings commonly referred to as the “betting tax” sparked widespread excitement among lottery participants. Yet, beneath the celebrations lies a nuanced legal and fiscal question: has the repeal abolished taxes on lottery winnings entirely, or solely removing the withholding obligation at payout? In 2017, betting tax was abolished under the Income Tax Amendments (No.2) Act, 2017 (Act 956). It was reintroduced in 2023 under the Income Tax (Amendment) Act, 2023 (Act 1094). Subsequently, in March 2025, the Income Tax (Amendment) Act, 2025 (Act 1129) was passed to abolish it again. The question is, has the betting tax been properly abolished, or is it merely a drafting issue in both the 2017 and 2025 Acts? Is income from betting, taxed elsewhere within the tax laws even though it is deleted from the list of items classified as investment income?

From a strictly legal and tax policy perspective, the signed repeal specifically removes the requirement for withholding taxes at the point of payout for lottery winnings. The critical technical distinction to consider is whether this repeal extends beyond withholding obligations to the overall taxability of lottery income under the Income Tax Act. While President’s signature formally ended the withholding tax regime, there remain complex and technical consideration. This article examines whether lottery income remains taxable, either as business income or as isolated transactions, despite the recent repeal.

Lottery and Betting In Ghana – Historical Canvas

Gambling is as old as society itself, and on the colonial Gold Coast, it took many forms, including informal betting houses, underground lottery schemes, and street-corner wagering. In the early days of Ghana’s independence, as the nation was building its legislative identity, it faced a surging challenge of unregulated gambling, and lotteries were spreading rapidly. Yet, these activities benefited unscrupulous operators, threatened to drain the hard-earned resources of ordinary Ghanaians, and deprived the state of valuable revenue streams.

Ghana sought to consolidate its fragmented gambling laws from the colonial rules when two legislative frameworks on lotteries were introduced: the Lotteries Betting Act, 1960 (Act 31) and the National Weekly Lotto Act, 1961 (Act 94). Together, these laws structured how these activities were conducted in Ghana. Act 31 was a robust legislative response aimed at criminalising unauthorised lotteries and regulating gaming activities under strict state oversight. Recognising that lotteries, if well-managed, could serve as a significant revenue source, the National Weekly Lotto Act (Act 94) was passed in 1961, creating a state monopoly over lottery operations. Act 31 firmly declared most lotteries unlawful.

From the early Acts of 1960 and 1961 and subsequent enactments such as the District Weekly Lotto Regulations, 1989 (LI 1482), to the comprehensive reforms in 2006, the National Lotto Act, 2006 (Act 722) was passed, and the Department of National Lotteries (DNL) gained autonomy. It became known as the National Lottery Authority (NLA), with a sole mandate to regulate, supervise, conduct, and manage the National Lotto. As technology advanced and new forms of gaming emerged, The Gaming Act, 2006 (Act 721) was passed.

Taxation of Lottery and Gambling in Ghana

Under Ghana’s Income Tax Act, 2015 (Act 896), taxable income is broadly categorised into three primary sources: Employment income, Business income, and Investment income. Each source is distinctly defined and taxed accordingly. The General rule is that unless an income is specifically exempted under the law, any income accruing to a person will fall under one of these three categories.

Employment Income (Section 4) includes all payments, benefits, or gains arising from an employment relationship, such as salaries, allowances, bonuses, and benefits in kind.

Business Income (Section 5) comprises profits or gains from any trade, profession, or vocation, including sales, fees, asset disposals, and business-related receipts.

Investment Income (Section 6) refers to returns generated from holding or investing in assets, including dividends, interest, rent, royalties, and lottery winnings.

Thus, since 2015, Ghana has recognised lottery winnings as an investment. A country’s tax system choice strongly influences the inclusion of lottery or gambling income. For countries with a worldwide nature of their tax system, gambling winnings are, in principle, subject to tax whether they arise from windfall (occasional transactions) or a professional gambler.

The Tax base is only on the winnings. Losses incurred in gambling are not deductible because each gambling occasion is a separate event, so gambling losses arising on one occasion cannot be deducted against gambling winnings derived on another occasion. These restrictions presumably reflect administrative difficulties of verifying gambling losses.Even in the case of a professional gambler, gambling losses for the year can be deducted only to the extent of gambling income.

Most countries tax lottery or Gambling income as occasional income (a windfall), and some countries consider gambling income taxable only if the gambler can be found to be in the business of gambling.  For example, in Germany, the gambling income of a professional card player is taxable as business income, while gambling income from TV shows is taxable as other income.

When Act 896 was passed, lottery winnings were taxed at a withholding rate of 5% on the winning amount under 1^st Schedule Par 8(1)(b)(viii). Regulation 24 of the Income Tax Regulations, 2016 (L.I. 2244), defines winnings from  lottery to include gaming, betting, and any game of chance.

In 2016, the Income Tax Amendment Act, 2016 (Act 907), exempted the first GHS 2,592, and any excess winnings exceeding this amount were taxable at a withholding rate of 5%. In 2017, the National Lottery Authority (NLA) submitted a proposal to the government for the scrapping of taxes as a means of attracting more mainstream operators, leading to the passage of the Income Tax Amendments (No. 2) Act, 2017 (Act 956). Act 956 provided as follows:  “ Section 6 of Act 896 amended:  The Income Tax Act, 2015 (Act 896) referred to in this Act as the principal enactment is amended in section 6 by the deletion of subparagraph (iv) of paragraph (a) of subsection (2)”. The amendment sought to delete from the list of items classified as investment income under Section 6.

By: Francis Timore Boi Esq [[email protected]]

The writer is a Tax Consultant and a member of the Chartered Institute of Taxation Ghana

The Financial Stock Index remained unchanged at 3,063.24, holding steady at a YTD return of 28.66%.

The Ghana Stock Exchange (GSE) Composite Index gained 1.26 points on Tuesday, April 9, 2025 closing at 6,101.34, as its Year-To-Date (YTD) return climbed to 24.81%.

The Financial Stock Index remained unchanged at 3,063.24, holding steady at a YTD return of 28.66%.

Market capitalisation edged up by GH¢15.67 million to GH¢135.54 billion, but trading volumes fell sharply.

A total of 363,423 shares changed hands, marking a 57.41% decline from the previous session, with total turnover amounting to GH¢719,136.96.

Among individual stocks, GOIL was the sole gainer, rising GH¢0.04 to close at GH¢1.75.

MTN Ghana Leads Trading Amid Low Volumes

MTN Ghana (MTNGH) led the market in turnover, with 175,754 shares traded at a total value of GH¢539,584.85.

Other actively traded stocks included Ecobank Transnational Incorporated (ETI), CAL Bank (CAL), GOIL, and Aluworks Ghana (ALLGH).

Despite the slowdown in activities, the broader market maintained its upward trajectory, buoyed by investor confidence in blue-chip stocks.

SP/AE

Watch the latest edition of BizTech below:

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From L to R: Wode Maya, Efia Odo, KiDi, Nana Aba Anamoah

A number of Ghanaian celebrities have taken to social media to express their excitement following Arsenal’s impressive 3-0 victory over Real Madrid in the quarter-finals of the UEFA Champions League.

On Tuesday, April 8, 2025, ‘The Gunners’ of Arsenal faced Real Madrid and delivered a dominant performance, securing an impressive 3-0 victory.

This resulted in reactions from the likes of Wode Maya, KiDi, Efia Odo, Nana Aba Anamoah, and others, who shared their joy, eagerly anticipating the second leg of the game.

Musician KiDi, a staunch Arsenal supporter, congratulated Thomas Partey on his outstanding performance.

“Thomas Partey came to ball! Is this my Arsenal?” he tweeted.

Vlogger Wode Maya also took to social media to praise the team, stating his excitement for the second leg.

“Congrats, but see you again at Santiago Bernabéu,” he shared.

Socialite Efia Odo expressed her shock after Declan Rice’s two stunning goals.

“Arsenal brought some heat today! Rice is serious, and that was a masterpiece! Mbappé can’t even believe it,” she said.

Popular media personality Nana Aba Anamoah also joined in, mocking Madrid’s defeat.

“Another one. DJ Khaled, haha Madrid,” she joked.

Arsenal’s victory came in the 58th minute when Declan Rice scored with a brilliant strike from a direct free kick.

In the 70th minute, Rice struck again, netting another impressive free kick to double Arsenal’s lead.

With Real Madrid unable to respond, Arsenal sealed the victory with a third goal five minutes later, courtesy of Mikel Merino, assisted by Myles Lewis-Skelly.

Read the post below:

IS THIS MY ARSENAL

— Lord KiDi (@KiDiMusic) KiDiMusic/status/1909704686354964630?ref_src=twsrc%5Etfw”>April 8, 2025

https://t.co/mXbbw5Ocr3 pic.twitter.com/UtImfDuCJf

— Lord KiDi (@KiDiMusic) KiDiMusic/status/1909696939005796652?ref_src=twsrc%5Etfw”>April 8, 2025

Congrats but See You again at Santiago Bernabéu 😎 https://t.co/G73nKB0gFS

— Wode Maya ® (@wode_maya) April 8, 2025

That was a masterpiece !!! Mbappe can’t even believe it

— EFIAODO (@Efiaodo1) April 8, 2025

😂😂😂😂 haha Madrid

— nana aba (@thenanaaba) April 8, 2025

JHM/EB

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

The Government of Ghana must expand its trade partners beyond the U.S. to mitigate the impact of tariffs, IMANI Africa has recommended.

Increasing exports to regional markets under the African Continental Free Trade Area (AfCFTA), as well as growing trade with China and the European Union, will help reduce Ghana’s dependence on the U.S. market, IMANI Africa said.

The policy think tank further stated that strengthening Ghana’s regional value chains under AfCFTA is crucial.

“By enhancing production for regional markets, Ghana can create more demand for local goods and reduce its vulnerability to external shocks like new tariffs,” IMANI Africa, in its Criticality of Key Economic Issues for March 31 – April 5, 2025.

IMANI added that “Boosting Local Industry and Competitiveness: To weather the impact of tariffs, Ghanaian exporters must improve product quality, branding, and packaging to differentiate their goods in competitive markets.”

IMANI Africa further highlighted the impact that the US government’s 10 % tariff on Ghana will have on the local economy.

It stated that reduced export revenues, trade balance worsening, and impact on local Industries as some of the effects Ghana will experience.

The Trump administration is moving forward with a wide-ranging implementation of tariffs across the globe. China is facing a 35 percent tax, while the European Union has been slapped with a 20 percent tariff.

In Ghana, a 10 percent tax has been imposed on exported goods, sparking discontent among the public.

The decision by U.S. President Donald Trump has been met with resistance both globally and locally. Business-oriented Ghanaians are now concerned about how they will generate revenue from exports in the wake of these new tariffs.

IMANI Africa, in its Criticality of Key Economic Issues for March 31 – April 5, 2025, recommends that “Ghana must expand its trade partners beyond the U.S. to mitigate the impact of tariffs. Increasing exports to regional markets under the African Continental Free Trade Area (AfCFTA), as well as growing trade with China and the EU, will help reduce Ghana’s dependence on the U.S. market. Strengthening Ghana’s regional value chains under AfCFTA is crucial. By enhancing production for regional markets, Ghana can create more demand for local goods and reduce its vulnerability to external shocks like new tariffs.

Read Also: 10% Tariffs: When Africans begin trading among ourselves, America will become jealous – TUC Secretary-General

Below is IMANI’s full assessment…

US 10% Tariff on Ghanaian Exports: Implications for the Economy.

In April 2025, the U.S. government announced a raft of reciprocal tariffs on all foreign exports to the United States, including a baseline 10% tariff that now applies across board to all Ghanaian exports.

The U.S. government’s rationale for the 10% tariff is aimed at reviving U.S. manufacturing and job creation. The policy is designed to reduce dependency on imports, and to incentivize American businesses to produce more locally. By raising the cost of imported goods, the government hopes to shift demand toward locally produced alternatives, reignite domestic investment, and protect American jobs.

The trade balance between the U.S. and Ghana has been showing increasing deficits in recent years, indicating a growing trade imbalance. According to the U.S. Census Bureau – Foreign Trade , the figures for the trade balance (goods) from 2020 to February 2025 are as follows:

2025 are as follows:

Year Trade balance (million dollars)

2020 112.0

2021 -762.7

2022 -1,722.9

2023 -765.9

2024 -204.4

Jan.–Feb. 2025 -67.6

This indicates a substantial increase in the U.S. trade deficit with Ghana over the past few years, peaking in 2022 with a deficit of $1.72 billion. While the trade deficit narrowed slightly in 2024, the ongoing trend of negative trade balances.

Before the tariff imposition, Ghana enjoyed preferential access to the U.S. market for several of its key exports under AGOA and the Generalized System of Preferences (GSP), both of which allowed duty-free or reduced-rate access to U.S. markets for eligible countries. Ghana’s primary exports to the U.S. under these programs include: Cocoa and cocoa products (particularly processed chocolate), Textiles, and garments, Processed fruits and nuts, and Timber products.

The tariff specifically targets products that have been central to Ghana’s exports to the U.S., including:

Processed cocoa products (such as chocolate and cocoa powder)

Textiles and apparel Processed fruits (including pineapple and mango products). Light manufactured goods (such as footwear and small machinery)

These goods have, in the past, entered the U.S. market with zero or very low tariffs. With the new tariff of 10%, Ghana’s exports will face a higher cost at the U.S. border, which could reduce their price competitiveness in a highly price-sensitive market.

Top Exports from Ghana to the U.S. (2023) :

Crude Petroleum  $1.23 billion (70.8%)

Cocoa Beans  $154 million (8.84%)

Cocoa Paste  $68.7 million (3.95%)

Cocoa Powder  $35.1 million (2.01%)

Soybeans  $13.44 million (1.79%)

Other Processed Fruits and Nuts  $24 million (1.43%)

Top Exports from the U.S. to Ghana (2023) :

Cars  $265 million (25.1%)

Refined Petroleum  $107 million (10.2%)

Crude Petroleum  $75.5 million (7.16%)

Ethylene Polymers  $59.89 million (5.67%)

Petroleum Gas  $56.3 million (5.34%)

Acyclic Hydrocarbons  $42.9 million (4.07%)

10% of Ghana’s non-traditional exports (NTEs) are sent to the U.S. market. Notably, the majority of Ghana’s top exports to the U.S.—such as cocoa beans, cocoa paste, cocoa powder, soybeans, and processed fruits and nuts—are classified as NTEs. While crude petroleum (which dominates export value) is currently exempt from the new 10% U.S.

tariffs, these NTEs are not. This means that most of Ghana’s exports to the U.S. will now face higher trade costs, directly affecting export revenue from the NTE sector. Given the importance of NTEs in supporting export diversification and job creation, the imposition of the tariffs could undermine progress in Ghana’s industrial development efforts.

The 10% tariff will have 3 main channels of impact on Ghana; direct impact, indirect impact, and potential decline in US investment.

Direct Impact:

The direct impact of the 10% tariff will be felt in the form of higher costs for Ghanaian goods exported to the U.S. This is because the tariff will increase the final price of both final goods and intermediate products that Ghana exports. As a result, Ghanaian products will become less competitive in the U.S. market, particularly in price-sensitive sectors such as processed agricultural goods, textiles, and light manufactured items. The tariff will likely lead to a decline in export revenue, especially from non-traditional exports (NTEs). In 2023, NTE exports accounted for about 24% of the total national exports, equating to approximately ₵3,944 billion. According to the 2023 GEPA NTE report, approximately 10% of Ghana’s NTEs were exported to the U.S. (approximately ₵394.4 billion) . With a 10% tariff, Ghana could see a direct reduction in the competitiveness of these exports. The direct effect of the tariff could result in a decline in export flows, directly affecting Ghana’s trade balance and overall export revenue.

Indirect Effect: Rising Import Costs from the U.S.

The indirect effect focuses on Ghana’s imports from the U.S., particularly those goods that rely on raw materials sourced from other countries, such as China or Japan, which may also be affected by reciprocal tariffs. Goods imported from the U.S. may see an increase in prices due to the additional cost burdens of tariffs, leading to inflationary pressure on local markets in Ghana. For instance, Ghana imports machinery, equipment, and vehicles from the U.S., and if the raw materials for these items are sourced from countries affected by U.S. tariffs, their production costs could rise. This could trigger price hikes for key imported products in Ghana. Some of the goods Ghana imports from the U.S. are used as intermediate goods for local production. If these raw materials become more expensive due to tariff increases or trade disruptions, Ghanaian manufacturers could face higher production costs, leading to price increases for goods sold domestically. This could contribute to inflation in sectors such as manufacturing, food processing, and construction.

Potential Decline in U.S. Investment in Ghana:

The third channel is a potential decline in U.S. investment in Ghana. A significant portion of U.S. investment in Ghana has been oriented towards taking advantage of trade agreements like AGOA, which granted preferential access to the U.S. market for various goods. The delay in renewing AGOA and the introduction of the baseline 10% tariff could raise production costs for U.S.-based companies operating in Ghana, making it less attractive to continue investing in production aimed at export to the U.S. U.S. investors could start to look for other, more competitive countries that offer lower production costs and preferential access to the U.S. market. This could reduce future U.S. investments in sectors like manufacturing, agriculture, and services, which are pivotal to the country’s economic growth.

Economic Implications for Ghana

1. Reduced Export Revenues: Ghana’s exports to the U.S. represent a critical source of foreign exchange. The imposition of a 10% tariff is likely to reduce demand for key exports like cocoa, textiles, and processed agricultural goods, as they will become more expensive for U.S. buyers. For example, cocoa exports, which account for nearly 40% of Ghana’s total exports to the U.S., could see a drop in volume, reducing export revenue – $835.5 million in February 2025 . Also Ghana exports about 11.5% of its cocoa beans and products to the US . Given that Cocoa is Ghana’s third-largest source of foreign exchange, the tariff could have an impact on meeting foreign exchange obligations.
2. Trade Balance Worsening: The imposition of the 10% tariff on Ghanaian exports to the U.S. could significantly affect Ghana’s trade balance by reducing its export revenues. As a result of the U.S. tariff, Ghana may face a decline in export revenues. Key exports such as cocoa, processed agricultural products, and textiles could become less competitive in the U.S. market due to the added tariff, leading to a decrease in the volume of exports. This reduction in export revenue will directly affect Ghana’s trade balance. While exports are shrinking due to the tariff, Ghana’s imports from the U.S. and other countries will likely remain unchanged or continue to grow, since tariffs are not imposed on imports. This means Ghana will continue to spend foreign currency on imports while earning less from exports, leading to a widening of the trade deficit.
3. Impact on Local Industries: Agribusiness and manufacturing sectors reliant on exports to the U.S. will be most affected. Textile manufacturers, for example, may face significant losses if the U.S. market — a major consumer of affordable clothing — reduces its imports of Ghanaian goods. In cocoa processing, reduced demand for processed products could lead to lower production and even job losses in the sector. The impact of declining cocoa revenues could trickle down to other industries that depend on the sector’s health, including agriculture, transportation, and processing industries.

According to data from the Ghana Export Promotion Authority (GEPA) , Non-Traditional Exports (NTEs) contributed GH¢3.94 billion (24%) to total national exports in 2023, up from GH¢3.53 billion (20%) in 2022. The majority of these exports came from the manufactures and semi-processed category, which accounted for 85% of NTEs and grew by 14.15%. Agricultural products made up 12.56%, though they declined by 3.02%, while handicrafts contributed 2.43% with a 17.85% growth.

The top five NTE products in 2023 (USD) were:

1. Iron/steel products – $447.8 million
2. Cocoa paste – $340.6 million
3. Cashew nuts – $263.5 million
4. Cocoa butter – $241.3 million
5. Articles of plastics (not elsewhere specified) – $203.1 million

Given this export structure, the imposition of a 10% U.S. tariff could disproportionately impact Ghana’s industrial and agro-processing export leaders, particularly cocoa paste, cocoa butter, and cashew. This would not only affect export revenues but also employment and ancillary industries across the value chain.

Source: Annual Non-Traditional Export (NTEs) Statistics Report, 2023

4. Currency Depreciation Pressure: Reduced export revenues will place further strain on the Ghanaian cedi, which has already been under pressure due to inflation and fiscal challenges. The decrease in foreign exchange inflows from exports could make it harder to stabilize the currency, leading to increased import costs, inflation, and a potential slowdown in economic growth.

Way Forward for Ghana

1. Trade Diversification: Ghana must expand its trade partners beyond the U.S. to mitigate the impact of tariffs. Increasing exports to regional markets under the African Continental Free Trade Area (AfCFTA), as well as growing trade with China and the EU, will help reduce Ghana’s dependence on the U.S. market. Strengthening Ghana’s regional value chains under AfCFTA is crucial. By enhancing production for regional markets, Ghana can create more demand for local goods and reduce its vulnerability to external shocks like new tariffs.
2. Boosting Local Industry and Competitiveness: To weather the impact of tariffs, Ghanaian exporters must improve product quality, branding, and packaging to differentiate their goods in competitive markets.

Source: IMANI’S Criticality of Key Economic Issues.  March 31 – April 5, 202

Arsenal are a team that have become renowned for their threat at set-pieces, but direct free-kicks are something different.

Arteta said after the game they hadn’t scored one since September 2021, so to score two in 13 minutes against Real Madrid “showed the beauty of whoever invented this sport”.

Arsenal’s free-kicks are usually taken by Bukayo Saka or Odegaard, but Rice said that he saw the space around the Madrid wall for the first goal and told Saka he was confident.

The England winger responded “if you feel it, go for it” – and he’ll be glad he did.

“It didn’t make sense from that angle to cross the ball [which Arsenal’s set-piece coach Nicolas Jover was signalling to do on the touchline]. It would have to be a delicate pass,” Rice added.

“I’m happy I took it because it was magic.”

It didn’t stop Jover wheeling off in celebration and Rice said afterwards the coach was “claiming it”.

Arteta added: “He can claim it if he wants, it doesn’t matter. It’s incredible.”

The opener was the goal that Arsenal deserved for their dominance, but the best was yet to come.

Alan Shearer said it was “absolutely incredible” and former Real Madrid midfielder Clarence Seedorf said “not even Superman would get it”.

“It looks far out, you don’t even realise. We were going to touch and set it – me and Martin [Odegaard], but Mbappe was kind of stood too close.

“But then I thought, I’ve got the keeper’s side, I practice this so much – I was going to go for it. I had the confidence from the first one. If it went over the bar it wouldn’t matter.

“It’s not going to hit me now because there’s another leg to go. I’m excited, I’m happy, I’m over the moon.

“It’s been in the locker, but I’ve hit the wall too many times or it’s gone over the bar.

“But in a few years time this will really hit me that what I’ve done tonight was really special.”

For Rice this was his biggest moment so far in an Arsenal shirt, but Arteta and midfielder Mikel Merino – who scored the third goal – were not surprised by how the former West Ham man stood up.

“If there’s a player who can do it, how clean he strikes it, it’s Declan,” said Arteta.

“But you have to execute it at the highest level. And against one of the best keeper’s in the world as well. It’s amazing.

“He’s been very determined because we have been talking the last few months. He has done it tonight.”

Merino added: “He has one of the best shooting abilities that I’ve seen in my career. I’m not surprised, maybe you are. Hopefully more will come in the future.”

Former Arsenal defender Matthew Upson told BBC Radio 5 Live it was “a night to remember” for Rice and he had “single-handedly made the difference”.

IMANI Africa has highlighted the impact that the US government’s 10 % tariff on Ghana will have on the local economy. 

The Policy think tank highlighted reduced export revenues, trade balance worsening and impact on local Industries as some of the effects Ghana will experience.

The Trump administration is moving forward with a wide-ranging implementation of tariffs across the globe. China is facing a 35 percent tax, while the European Union has been slapped with a 20 percent tariff.

In Ghana, a 10 percent tax has been imposed on exported goods, sparking discontent among the public.

The decision by U.S. President Donald Trump has been met with resistance both globally and locally. Business-oriented Ghanaians are now concerned about how they will generate revenue from exports in the wake of these new tariffs.

IMANI Africa, in its Criticality of Key Economic Issues for March 31 – April 5, 2025, recommends that “Ghana must expand its trade partners beyond the U.S. to mitigate the impact of tariffs. Increasing exports to regional markets under the African Continental Free Trade Area (AfCFTA), as well as growing trade with China and the EU, will help reduce Ghana’s dependence on the U.S. market. Strengthening Ghana’s regional value chains under AfCFTA is crucial. By enhancing production for regional markets, Ghana can create more demand for local goods and reduce its vulnerability to external shocks like new tariffs.

Read Also: 10% Tariffs: When Africans begin trading among ourselves, America will become jealous – TUC Secretary-General

“Boosting Local Industry and Competitiveness: To weather the impact of tariffs, Ghanaian exporters must improve product quality, branding, and packaging to differentiate their goods in competitive markets.”

Below is IMANI’s full assessment…

US 10% Tariff on Ghanaian Exports: Implications for the Economy.

In April 2025, the U.S. government announced a raft of reciprocal tariffs on all foreign exports to the United States, including a baseline 10% tariff that now applies across board to all Ghanaian exports.

The U.S. government’s rationale for the 10% tariff is aimed at reviving U.S. manufacturing and job creation. The policy is designed to reduce dependency on imports, and to incentivize American businesses to produce more locally. By raising the cost of imported goods, the government hopes to shift demand toward locally produced alternatives, reignite domestic investment, and protect American jobs.

The trade balance between the U.S. and Ghana has been showing increasing deficits in recent years, indicating a growing trade imbalance. According to the U.S. Census Bureau – Foreign Trade , the figures for the trade balance (goods) from 2020 to February 2025 are as follows:

2025 are as follows:

Year Trade balance (million dollars)

2020 112.0

2021 -762.7

2022 -1,722.9

2023 -765.9

2024 -204.4

Jan.–Feb. 2025 -67.6

This indicates a substantial increase in the U.S. trade deficit with Ghana over the past few years, peaking in 2022 with a deficit of $1.72 billion. While the trade deficit narrowed slightly in 2024, the ongoing trend of negative trade balances.

Before the tariff imposition, Ghana enjoyed preferential access to the U.S. market for several of its key exports under AGOA and the Generalized System of Preferences (GSP), both of which allowed duty-free or reduced-rate access to U.S. markets for eligible countries. Ghana’s primary exports to the U.S. under these programs include: Cocoa and cocoa products (particularly processed chocolate), Textiles, and garments, Processed fruits and nuts, and Timber products.

The tariff specifically targets products that have been central to Ghana’s exports to the U.S., including:

Processed cocoa products (such as chocolate and cocoa powder)

Textiles and apparel Processed fruits (including pineapple and mango products). Light manufactured goods (such as footwear and small machinery)

These goods have, in the past, entered the U.S. market with zero or very low tariffs. With the new tariff of 10%, Ghana’s exports will face a higher cost at the U.S. border, which could reduce their price competitiveness in a highly price-sensitive market.

Top Exports from Ghana to the U.S. (2023) :

Crude Petroleum  $1.23 billion (70.8%)

Cocoa Beans  $154 million (8.84%)

Cocoa Paste  $68.7 million (3.95%)

Cocoa Powder  $35.1 million (2.01%)

Soybeans  $13.44 million (1.79%)

Other Processed Fruits and Nuts  $24 million (1.43%)

Top Exports from the U.S. to Ghana (2023) :

Cars  $265 million (25.1%)

Refined Petroleum  $107 million (10.2%)

Crude Petroleum  $75.5 million (7.16%)

Ethylene Polymers  $59.89 million (5.67%)

Petroleum Gas  $56.3 million (5.34%)

Acyclic Hydrocarbons  $42.9 million (4.07%)

10% of Ghana’s non-traditional exports (NTEs) are sent to the U.S. market. Notably, the majority of Ghana’s top exports to the U.S.—such as cocoa beans, cocoa paste, cocoa powder, soybeans, and processed fruits and nuts—are classified as NTEs. While crude petroleum (which dominates export value) is currently exempt from the new 10% U.S.

tariffs, these NTEs are not. This means that most of Ghana’s exports to the U.S. will now face higher trade costs, directly affecting export revenue from the NTE sector. Given the importance of NTEs in supporting export diversification and job creation, the imposition of the tariffs could undermine progress in Ghana’s industrial development efforts.

The 10% tariff will have 3 main channels of impact on Ghana; direct impact, indirect impact, and potential decline in US investment.

Direct Impact:

The direct impact of the 10% tariff will be felt in the form of higher costs for Ghanaian goods exported to the U.S. This is because the tariff will increase the final price of both final goods and intermediate products that Ghana exports. As a result, Ghanaian products will become less competitive in the U.S. market, particularly in price-sensitive sectors such as processed agricultural goods, textiles, and light manufactured items. The tariff will likely lead to a decline in export revenue, especially from non-traditional exports (NTEs). In 2023, NTE exports accounted for about 24% of the total national exports, equating to approximately ₵3,944 billion. According to the 2023 GEPA NTE report, approximately 10% of Ghana’s NTEs were exported to the U.S. (approximately ₵394.4 billion) . With a 10% tariff, Ghana could see a direct reduction in the competitiveness of these exports. The direct effect of the tariff could result in a decline in export flows, directly affecting Ghana’s trade balance and overall export revenue.

Indirect Effect: Rising Import Costs from the U.S.

The indirect effect focuses on Ghana’s imports from the U.S., particularly those goods that rely on raw materials sourced from other countries, such as China or Japan, which may also be affected by reciprocal tariffs. Goods imported from the U.S. may see an increase in prices due to the additional cost burdens of tariffs, leading to inflationary pressure on local markets in Ghana. For instance, Ghana imports machinery, equipment, and vehicles from the U.S., and if the raw materials for these items are sourced from countries affected by U.S. tariffs, their production costs could rise. This could trigger price hikes for key imported products in Ghana. Some of the goods Ghana imports from the U.S. are used as intermediate goods for local production. If these raw materials become more expensive due to tariff increases or trade disruptions, Ghanaian manufacturers could face higher production costs, leading to price increases for goods sold domestically. This could contribute to inflation in sectors such as manufacturing, food processing, and construction.

Potential Decline in U.S. Investment in Ghana:

The third channel is a potential decline in U.S. investment in Ghana. A significant portion of U.S. investment in Ghana has been oriented towards taking advantage of trade agreements like AGOA, which granted preferential access to the U.S. market for various goods. The delay in renewing AGOA and the introduction of the baseline 10% tariff could raise production costs for U.S.-based companies operating in Ghana, making it less attractive to continue investing in production aimed at export to the U.S. U.S. investors could start to look for other, more competitive countries that offer lower production costs and preferential access to the U.S. market. This could reduce future U.S. investments in sectors like manufacturing, agriculture, and services, which are pivotal to the country’s economic growth.

Economic Implications for Ghana

1. Reduced Export Revenues: Ghana’s exports to the U.S. represent a critical source of foreign exchange. The imposition of a 10% tariff is likely to reduce demand for key exports like cocoa, textiles, and processed agricultural goods, as they will become more expensive for U.S. buyers. For example, cocoa exports, which account for nearly 40% of Ghana’s total exports to the U.S., could see a drop in volume, reducing export revenue – $835.5 million in February 2025 . Also Ghana exports about 11.5% of its cocoa beans and products to the US . Given that Cocoa is Ghana’s third-largest source of foreign exchange, the tariff could have an impact on meeting foreign exchange obligations.
2. Trade Balance Worsening: The imposition of the 10% tariff on Ghanaian exports to the U.S. could significantly affect Ghana’s trade balance by reducing its export revenues. As a result of the U.S. tariff, Ghana may face a decline in export revenues. Key exports such as cocoa, processed agricultural products, and textiles could become less competitive in the U.S. market due to the added tariff, leading to a decrease in the volume of exports. This reduction in export revenue will directly affect Ghana’s trade balance. While exports are shrinking due to the tariff, Ghana’s imports from the U.S. and other countries will likely remain unchanged or continue to grow, since tariffs are not imposed on imports. This means Ghana will continue to spend foreign currency on imports while earning less from exports, leading to a widening of the trade deficit.
3. Impact on Local Industries: Agribusiness and manufacturing sectors reliant on exports to the U.S. will be most affected. Textile manufacturers, for example, may face significant losses if the U.S. market — a major consumer of affordable clothing — reduces its imports of Ghanaian goods. In cocoa processing, reduced demand for processed products could lead to lower production and even job losses in the sector. The impact of declining cocoa revenues could trickle down to other industries that depend on the sector’s health, including agriculture, transportation, and processing industries.

According to data from the Ghana Export Promotion Authority (GEPA) , Non-Traditional Exports (NTEs) contributed GH¢3.94 billion (24%) to total national exports in 2023, up from GH¢3.53 billion (20%) in 2022. The majority of these exports came from the manufactures and semi-processed category, which accounted for 85% of NTEs and grew by 14.15%. Agricultural products made up 12.56%, though they declined by 3.02%, while handicrafts contributed 2.43% with a 17.85% growth.

The top five NTE products in 2023 (USD) were:

1. Iron/steel products – $447.8 million
2. Cocoa paste – $340.6 million
3. Cashew nuts – $263.5 million
4. Cocoa butter – $241.3 million
5. Articles of plastics (not elsewhere specified) – $203.1 million

Given this export structure, the imposition of a 10% U.S. tariff could disproportionately impact Ghana’s industrial and agro-processing export leaders, particularly cocoa paste, cocoa butter, and cashew. This would not only affect export revenues but also employment and ancillary industries across the value chain.

Source: Annual Non-Traditional Export (NTEs) Statistics Report, 2023

4. Currency Depreciation Pressure: Reduced export revenues will place further strain on the Ghanaian cedi, which has already been under pressure due to inflation and fiscal challenges. The decrease in foreign exchange inflows from exports could make it harder to stabilize the currency, leading to increased import costs, inflation, and a potential slowdown in economic growth.

Way Forward for Ghana

1. Trade Diversification: Ghana must expand its trade partners beyond the U.S. to mitigate the impact of tariffs. Increasing exports to regional markets under the African Continental Free Trade Area (AfCFTA), as well as growing trade with China and the EU, will help reduce Ghana’s dependence on the U.S. market. Strengthening Ghana’s regional value chains under AfCFTA is crucial. By enhancing production for regional markets, Ghana can create more demand for local goods and reduce its vulnerability to external shocks like new tariffs.
2. Boosting Local Industry and Competitiveness: To weather the impact of tariffs, Ghanaian exporters must improve product quality, branding, and packaging to differentiate their goods in competitive markets.

Source: IMANI’S Criticality of Key Economic Issues.  March 31 – April 5, 202

 Crude oil prices have dropped below $57, following a previous rate of $59.78 on Sunday, April 6, 2025.  

This decline coincides with the imposition of tariffs on several countries by US President Donald Trump.

 A report from West Texas Intermediate attributes this price slump to consistent 6% reductions observed last week.

 JPMorgan Chase & Co has warned that these tariffs could likely push both the US and global economies into a recession this year.

 The financial institution explained that the tariffs, set to take effect this week, are expected to have widespread economic repercussions.

 Market analysts and the business community have expressed concerns about the negative implications of these measures, predicting a slowdown in economic activities and a subsequent decline in oil demand.

 SA/AE

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Personnel of the Ghana Immigration Service (GIS) have intercepted 25 bags of cocoa beans being smuggled into Togo through the Kauk-Jago border in the Bunkpurugu enclave in the North East Region.

The bags of cocoa beans are believed to have been transported from southern Ghana to the north on a transit outside of Ghana, as part of a syndicate that smuggles cocoa beans outside of Ghana to neighbouring countries.

Acting upon a tip-off, the personnel laid an ambush on the suspects along the border and confiscated the goods.

Although the suspects managed to flee the scene, the officers confiscated the cocoa beans, which were being illegally transported out of the country.

Confirmation

Confirming the incident to the Daily Graphic,  the Bunkpurugu Sector Commander of GIS, Assistant Commissioner of Immigration Edwin Adjetey Doku, said the goods had been handed over to the Ghana Revenue Authority (GRA) while investigations continue.

“We acted on credible intelligence about cocoa beans being smuggled from the Kauk-Jago area into Togo. My team quickly mobilised and intercepted the goods, although the drivers and two other individuals escaped,” she explained.

He reaffirmed his outfit’s commitment to protecting Ghana’s territorial borders and combating all forms of cross-border crimes. 

support

ACI Doku also urged the public to support its efforts by reporting suspicious activities.

He emphasised the need for enhanced logistical support to effectively tackle the rising cases of smuggling in the area, stressing that “the Bunkpurugu Division urgently needs more resources to fight the persistent smuggling of goods across our borders”.

War

The Cocobod has waged a war against cocoa smuggling in the country and has relied on the diligence of the Immigration Service and other security officers at the country’s borders to help curb the incident, which has been on the rise.

“The GIS, in particular, has been resolute in the protection of the borders to prevent cross-border crimes.

It has improved its engagement with border residents and the general public and is continuously collaborating with the Service through information sharing.

It has also encouraged citizens, particularly border residents, to report suspicious persons and activities to the GIS and other security agencies.

Writer’s email:[email protected]

Ghana could lose up to $500 million in government revenue if it proceeds with plans to refine its lithium domestically, according to a new report by the Natural Resource Governance Institute (NRGI).

The analysis warns that a state – or privately-run refinery would only break even if it purchases lithium concentrate at below-market prices—undercutting revenue from royalties, taxes, and dividends from current mining operations.

The modeling compares two scenarios: exporting raw lithium spodumene concentrate versus processing it locally. The results are stark—exporting yields higher net revenue for the government, especially if concentrate is sold to Chinese refineries, which currently dominate the global market and operate at far lower costs.

In the medium-price scenario, refining locally reduces expected government revenue from $2.7 billion to $2.2 billion. Even with a 20-year operational refinery, losses exceed $300 million, largely due to Ghana’s high capital costs, limited feedstock, and lack of refining expertise.

In contrast, China controls over 90% of global lithium refining, benefitting from economies of scale, cheap reagents, and state-backed subsidies. Most new refineries outside China—including in Australia and Europe—have either been cancelled or delayed due to similar cost hurdles.

NRGI recommends Ghana adopt a “mine-and-monitor” strategy—starting lithium production at Ewoyaa swiftly, supporting exploration, and tracking global refining trends before committing public funds to a potentially loss-making refinery.

While calls for local value addition remain strong, the report urges policymakers to weigh economic feasibility and opportunity costs—highlighting that the projected $500 million loss exceeds Ghana’s entire 2024 education budget for basic schools.

Emma Bulley, Chairperson of National Mining Museum Board of Trustees

The Board of Trustees of the National Mining Museum initiative has announced the appointment of Emma Bulley as its new Chairperson.

Her appointment marks a bold and exciting new chapter in the realisation of one of Ghana’s most visionary and unifying national projects.

Ms Bulley is widely respected for her strategic leadership, commitment to results, and ability to bring together people, institutions, and ideas. She now takes the helm of a national project that will not only honour Ghana’s proud mining heritage but also ignite a new era of industrial and cultural transformation.

The National Mining Museum, located in Tarkwa, is being developed as a non-partisan, national legacy initiative under the oversight of the National Mining Museum Board.

It is a long term, innovative partnership involving the University of Mines and Technology (UMaT) and several leading industrial stakeholders.

The vision is clear; to build a world-class museum that inspires pride, preserves history, drives education, promotes innovation, and catalyses inclusive growth across Ghana and the West African sub region.

In her acceptance remarks, Ms Bulley paid tribute to her predecessor, Professor Douglas Boateng, for his leadership.

“I wish to sincerely thank Professor Boateng for his exceptional Pan Africanist vision and long term approach to industrialising Ghana and the continent. He has laid a strong foundation. It is now our responsibility to build on it boldly and purposefully.”

She added, “It is a deep honour to serve as Chair. This project is not just about mining. It is about national identity, learning, and unlocking future possibilities. Together, we will build something that lasts for generations; a living legacy for Ghana and Africa.”

Professor Douglas Boateng, who led the initiative with distinction, also expressed his enthusiasm and commitment.

“I am absolutely thrilled with Ms. Bulley’s appointment. She is one of the most delivery driven executives on the continent. Her leadership is exactly what the project needs at this stage. I will continue to support her to ensure the museum is successfully completed before the end of 2028.

“As I step down to focus more on advancing the broader Pan African industrialisation agenda, I remain fully committed to the success of this museum. It is a cornerstone of Ghana’s development story and a symbol of what visionary collaboration can achieve across Africa,” he said.

Professor Richard Kwasi Amankwah, Vice Chancellor of the University of Mines and Technology (UMaT) and Vice Chairman of the Board of Trustees, also shared his confidence and optimism.

“This is a defining moment. Ms Bulley brings clarity, vision, and action. The National Mining Museum will be more than a place of history; it will be a living centre of innovation, research, and opportunity. At UMaT, and as Vice Chair of the Board, I look forward to working closely with her to make this dream a national and continental reality.”

The museum aims to bridge history with opportunity. It will bring together industry, academia, and communities. It will inspire the next generation while honouring those who shaped Ghana’s mining story.

With Ms Bulley at the helm, supported by a distinguished and committed Board of Trustees, the National Mining Museum is on course to become a world class institution: one that reflects Ghana’s leadership, Africa’s potential, and the promise of a shared, sustainable future.

In her concluding remarks, Ms Bulley offered this poignant reflection.

“If we only honour the gold beneath our soil but not the minds above it, we miss the true treasure. This museum is not just about preserving the past. It will unlock thousands of long term opportunities for education, tourism, innovation, and entrepreneurship. It is where heritage meets hope, and history gives birth to tomorrow’s possibilities.”

Gospel musician Cwesi Oteng

Gospel musician Cwesi Oteng has revealed that, during his youth, he used to collect 10% from gamblers, describing himself as one of the “bad boys” in his community at the time.

In an interview with Joy Prime, the award-winning musician opened up on his life before he answered the call to God’s ministry.

He admitted to frequently attending nightclubs and being deeply involved in the street gambling culture.

According to the ‘God Dey Bless Me’ hitmaker, he was part of a group of boys who organised and oversaw gambling activities in the area.

He said their role wasn’t just to participate but also to profit from the games being played.

“I used to club a lot. The community where I lived attracted many young people who came to gamble. I would walk around and collect 10% from the gamblers. We were known as the ‘bad boys’ in the area,” Cwesi Oteng shared.

He added that their notoriety grew to the point where the elders of his community began holding regular meetings to address their influence and activities.

“The elders in the neighbourhood had to hold meetings about us because we were bringing all the bad guys in the community together due to the gambling activities,” he explained.

AK/EB

Kweku Zurek

Business News

Apr – 09 – 2025 , 05:57

Ghana and the Czech Republic have reaffirmed their commitment to deepening political, economic and cultural cooperation during a high-level visit by Czech President Petr Pavel to the Jubilee House. 

The discussions, led by President John Mahama and his Czech counterpart, highlighted shared democratic values, expanded trade opportunities, and collaboration in health care, security and climate change.  

Both leaders emphasised the need to increase trade volumes, which currently stand at $33 million —the second-highest in a decade for the Czech Republic in the region.

To further solidify cooperation, the two leaders witnessed the signing of a Memorandum of Understanding (MoU) on Political Consultations and a Bilateral Air Services Agreement, which is expected to enhance connectivity and trade between the two countries.

The two leaders expressed optimism that the agreements and discussions would translate into tangible benefits for both nations, with a focus on private sector engagement, infrastructure development and multilateral cooperation.

Diplomatic, trade relations

President Mahama underscored the longstanding ties between the two nations, dating back to 1961 when diplomatic missions were established.

He noted that the relationship had been reinforced over the decades through high-level exchanges, including the opening of resident missions in their respective capitals.  

He further urged private sector players from both nations to explore partnerships, particularly under the African Continental Free Trade Area (AfCFTA), which offers access to a market of over 1.3 billion people.

President Mahama commended the Czech Republic for its support in Ghana’s healthcare sector, including the Vamed Health Projects, which involve the construction of 12 forty-bed hospitals and staff housing in beneficiary communities.

He also called for the revival of the stalled 50 Bridges project, affected by Ghana’s Debt Exchange Programme and proposed further cooperation on an additional 100 Bridges initiative.

On regional security, President Mahama briefed his counterpart on ECOWAS and EU efforts to combat terrorism, violent extremism and unconstitutional governance in the Sahel and West Africa.

He sought Czech’s support in addressing these challenges.  

Mutual support

Both nations also acknowledged the urgent need for climate action, pledging to collaborate on renewable energy, sustainable mining, and land reclamation.

Additionally, they discussed vocational training under Ghana’s Labour Export Programme, aimed at equipping youth with skills for international employment.  

At the multilateral level, President Mahama called for Czech’s support for Ghana’s candidate, Ambassador Mohamed Adam, for the position of Secretary-General of the UN Tourism Organisation.

In return, Ghana pledged to back the Czech Republic’s bid for a UN Security Council seat.

President Pavel, the first Czech head of state to visit Ghana in over 60 years, expressed gratitude for Ghana’s hospitality and described the country as a key partner in Africa.

A business roundtable between Ghanaian and Czech entrepreneurs has been scheduled to take place, with President Pavel expressing optimism about expanding collaboration in agriculture, mining, health care and water purification.

He also announced the opening of a Czech Technology Hub in Ghana to facilitate knowledge exchange and investment opportunities.  

The Czech leader highlighted his country’s Medivac programme, which provides medical aid to vulnerable groups and facilitates knowledge transfer in health care.  

He emphasised the importance of diversifying partnerships amid global geopolitical tensions, including pressures from Russia and economic shifts influenced by the US.

“We believe in cooperation that creates added value and leaves lasting benefits in Ghana.

“This visit marks a new phase in our relations and we are committed to making it even stronger,” President Pavel assured. 

Dr. Johnson Asiama, Bank of Ghana Governor

The Bank of Ghana (BoG) is shifting its strategy for reforming the Specialised Deposit-taking Institutions (SDI) sector, advocating an industry-led consolidation effort supported by strategic equity investment and strengthened governance structures.

Speaking at a post-Monetary Policy Committee (MPC) media engagement after the Bank’s 123rd MPC meeting, Ismail Adam, Acting Head-Banking Supervision Department, said BoG is working closely with the Ministry of Finance and other stakeholders to develop a coherent plan that will revitalise the SDI sector, improve credit delivery and strengthen deposit mobilisation, especially for underserved markets.

“The Bank of Ghana is now emphasising a industry-led consolidation to reshape the SDI sector. This involves attracting equity from strategic investors – some are already engaging SDIs – and revamping governance to ensure proper oversight,” Mr. Adam said.

The regulator’s approach is designed to counteract what it sees as a “mission drift” among some institutions in the sector, which have deviated from their original purpose of extending financial services to the underserved and excluded.

To address this, BoG has set up an internal committee, complementing a separate team of consultants engaged by the Finance Ministry to draft a roadmap for strengthening the SDI landscape.

The SDI sector includes rural and community banks, savings and loans companies, finance houses and microfinance institutions. Many of these entities have been grappling with weak capitalisation, governance lapses and mounting complaints from depositors over unfulfilled obligations.

The central bank’s renewed focus on self-driven reform comes at a time when there is continued pressure from Ghana’s development partners to strengthen the country’s financial sector resolution framework.

The International Monetary Fund (IMF), as part of its ongoing programme reviews, has flagged the need for more robust mechanisms to deal with failing institutions. Yet no clear timeline has been established for rolling out an industry-funded resolution mechanism.

For now, BoG’s strategy relies on enhanced supervision and early warning systems. While liquidation remains legally available, the Bank has been reluctant to deploy it broadly due to both financial constraints and reputational risks.

“The absence of an industry-funded resolution mechanism – akin to the model used in Nigeria – has exacerbated the problem,” Mr. Adam noted. In Nigeria, banks and other financial institutions contribute annually to a resolution fund; enabling timely interventions without triggering taxpayer-funded bailouts.

Ghana, by contrast, still relies on ad hoc fiscal arrangements when intervention becomes necessary – a model that proved problematic during past banking sector clean-ups. The previous approach of waiting for government funding, Mr. Adam acknowledged, created moral hazards as some operators willingly relinquished their licenses – expecting public bailouts and evading accountability.

“Complaints about SDIs failing obligations are rising; and while we acknowledge their struggles, we can’t act instantly without funds,” Mr. Adam said, suggesting that delays in responding to distressed institutions are often tied to resource constraints.

The new framework seeks to address these shortcomings by encouraging consolidation among SDIs through private capital, ensuring that only well-governed and solvent entities remain in operation. Liquidity support, he emphasised, is reserved for solvent institutions and is not a substitute for resolution tools.

Mr. Adam drew a distinction between past interventions involving Purchase and Assumption (P&A) transactions – such as those executed with GCB Bank and Consolidated Bank Ghana -and outright liquidations. The P&A model allowed for the seamless transfer of deposits, avoiding losses to customers and maintaining public confidence.

“In contrast, liquidation requires upfront funding we often lack and caps payouts to depositors. People confuse SEC-regulated asset management cleanups – where most depositors have been repaid – with BoG-regulated SDIs, where resources are more constrained,” he explained.

Going forward, BoG intends to avoid taxpayer-funded interventions by strengthening internal supervisory tools and aligning its crisis response model with global best practices that emphasise accountability and cost efficiency, Mr. Adam noted.

The regulator’s preference now is to avoid future crises altogether by preemptively addressing risks within the system. This includes pressing SDIs to revise their business models, enhance governance and prepare for possible mergers or acquisitions led by industry players.

BoG executive said the regulator’s evolving position reflects a broader rethink of financial sector stability, moving away from reactive liquidation measures toward proactive consolidation efforts aimed at preserving value and protecting depositors.

“The goal is to integrate all these efforts, revitalising the SDI space to serve excluded markets,” Mr. Adam said.

“We want to address financial stability without repeating pitfalls of the past,” he added.