Head of GUTA’s Business and Economic Bureau, Charles Kusi Appiah Kubi

The Ghana Union of Traders Association (GUTA) has strongly opposed the recent increase in the policy rate by the Bank of Ghana, warning that it will worsen the cost of doing business and negatively impact the economy.

According to a statement signed by the Head of GUTA’s Business and Economic Bureau, Charles Kusi Appiah Kubi, any increase in the policy rate directly influences lending rates, leading to higher interest rates from commercial banks. The association argues that this will add to the financial burden businesses are already struggling with.

“We are already saddled with high interest rates, which continue to increase the cost of production and doing business in Ghana. The question is, why does the central bank, through its monetary policy, choose to increase the policy rate at this time?” he queried.

The statement also highlighted the need for careful examination of key economic indicators such as Treasury bill rates, inflation rates, and policy rates.

GUTA noted that while Treasury bill rates are declining due to the government’s efforts to consolidate fiscal expenditure and reduce borrowing, inflation remains high, raising concerns about the effectiveness of monetary policy interventions.

“The reduction in Treasury bill rates should have had a positive impact on inflation and policy rates, but that is not what we are seeing. Instead, businesses are facing increased economic challenges,” Kubi added.

GUTA further cautioned that the policy rate hike could worsen liquidity challenges for commercial banks, as non-performing loans (NPLs) continue to rise. The association warned that this could make banks reluctant to lend to businesses, further stifling economic growth.

“The moment you try to control inflation through demand-pull measures, you risk driving inflation up instead. Our inflation is primarily cost-push, driven by high consumption taxes and borrowing costs. A better approach would be to reform the VAT system to reduce tax rates, which could lower the prices of goods and support disinflation,” Kubi suggested.

GUTA proposed alternative measures for tackling inflation without harming businesses, including:

Adjusting Treasury bill interest rates upwards to attract investment and mop up excess liquidity.

Raising capital through Public-Private Partnerships (PPP) to finance capital expenditure instead of relying solely on borrowing.

Strengthening the domestic bond market to provide long-term investment opportunities.

The association urged the government and the Bank of Ghana to adopt a more calculated strategy that balances fiscal and monetary policies without worsening the already challenging business environment.

“We must be tactful and circumspect. Any policy intervention aimed at mopping up excess liquidity and controlling inflation should not further burden businesses, as this could have severe economic ramifications,” Kubi concluded.

Research, especially the kind that touches on consumer health has always been on my heart for obvious reasons. Having had the benefit of working with a manufacturing company in my previous life, I have valued and come to appreciate the contribution of scientific research which drives innovation, meeting consumer needs with tailored products, brand development which translates into credibility, respect and goodwill.

One has come to appreciate that nations and industrial concerns that invest in research tend to be progressive in their approach to development. 

Thanks to research, one gets better informed about lifestyles and life choices. For this reason, whenever I go shopping, I spend time in supermarkets checking on leads gathered from research by scrutinising labels before selecting my items. The same goes for prescriptions and supplements.

It is with this keen interest that my curiosity was piqued with the recent tomato paste research by food research scientists from the Kwame Nkrumah University of Science and Technology (KNUST), Kumasi, which made some headlines late in February this year.

Research

The research finding which was published in the International Journal of Food Science and which was primarily aimed at assessing the quality of tomato concentrates on the Ghanaian market drew consumer minds to foods one loves to prepare using tomato paste.

While the study in question confirmed that the eight different brands of tomato paste used in the study were in conformity to the standard labelling and quality requirements, on the other hand, however, they failed to meet the recommended range of twenty four percent of natural tomato content.

The disappointing news in the report, however, is that two of the tested brands had traces of the banned substance, Erythrosine, which is also known as “Number 3”. Those two brands were also found to have used a larger quantity of starch, much beyond the required specification.

Counter

While one was pondering over the research finding and wondering which the two unnamed “culprits” were on the market, the regulator, Food and Drugs Authority (FDA) quickly came out with their version, maybe a counter to the research finding. 

According to the FDA, knowing the health dangers of Red Dye Number 3, the Authority does not permit the substance to be used in the production of tomato paste. Additionally, the FDA said they did not allow starch in tomato paste production.

To back their assertion, therefore, the Authority issued a public statement pointing to the fact that as far back as 2015, the Authority played a pivotal role in ensuring that Red Dye 3, a synthetic colour was banned in tomato products in Ghana. I guess one can rightly assume tomato products include tomato paste.

If that is so, then, there seems to be some confusion here in the minds of consumers who read the scientific research on tomato paste and what FDA is saying about the regulation on the “Number 3” substance.

Consumer

Where the consumer could be in limbo here is why despite the fact that the substance had been banned by the FDA in tomato paste production, yet some “culprits” are still using it in their production to the detriment of consumer health, as stated in the report by the KNUST Food Science and Technology research led by Dr. Abena Boakye and which has now taken a page in the International Journal of Food Science.

Most worrying is that the FDA claim in its media statement that as far back as 2018, only  three tomato paste products and 10 tomato mix products were registered by them. 

Seven years later, the country has as many as 40 registered tomato paste products and 62 registered tomato mix products on the market.

Interestingly, the FDA’s media statement has made it clear that all the products complied with the country’s standards, and they do undergo rigorous evaluation and testing before approval. Here, the Authority makes a clear distinction between tomato paste and tomato mix with different compositions. 

So, who is right, and whose version should the consumer go by? Should one go the path of the scientific research claiming that two of the eight brands they tested in our market have the banned substance which is injurous to consumer health or the FDA claim that all the tomato paste products on our market have been tested, they undergo rigorous evaluation and testing and therefore comply with the country’s standards before approval.

The poor consumer needs clarity and reassurance, going forward. Can the KNUST Food Science research, which is now out there in the international space, name the two brands so consumers may be aware?

We need someone to come to our aid with clear and better particulars in this crucial food matter which affects one’s health.

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The writer can be contacted via email at [email protected]

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MTN Ghana’s CEO, Stephen Blewett, has highlighted the company’s resilience amidst Ghana’s challenging macroeconomic environment at the 7th annual general meeting held in Accra. “Despite economic headwinds, I’m pleased to report that MTN Ghana achieved impressive results in 2024,” Mr. Blewett noted.

The company’s service revenue grew by 34.5% year-on-year, while earnings before interest, taxes, depreciation, and amortization (EBITDA) increased by 31.3%. These successes reflect MTN Ghana’s strategic efforts to navigate challenges and commitment to Ambition 2025 priorities.

According to Blewett, the company’s growth was driven by significant strides in its digital transformation journey and the launch of innovative services like mobile financial services and digital entertainment.

Ishmael Yamson, MTN Ghana’s Board Chairman, emphasized the company’s efforts in strengthening its governance framework, ensuring transparency and accountability. “We’ve achieved notable progress in our Environmental, Social and Governance (ESG) initiatives, demonstrating our commitment to sustainable practices and corporate responsibility.”

Despite the global economy’s mixed performance, MTN Ghana remained focused on its strategic objectives. The company showcased exceptional resilience, achieving a remarkable 34.5% year-on-year growth in service revenue amidst Ghana’s challenging macroeconomic environment.

The Board of Directors recommended a final dividend payment of 24 pesewas per share, totaling GHC4.0 billion, which accounts for 80% of the company’s profit after tax. This represents a significant increase of 35.6% in dividend per share compared to 2023.

Acting MD of the Precious Minerals Marketing Company, Sammy Gyamfi,

The Acting Managing Director of the Precious Minerals Marketing Company, Sammy Gyamfi, has dismissed claims that the structure of the newly established Ghana Gold Board (GoldBod) could lead to conflicts of interest.

In a social media post on X, Sammy Gyamfi clarified that GoldBod is neither a regulator nor a commercial competitor but a state monopoly responsible for trading and exporting gold.

He explained that its regulatory role is limited to ensuring compliance by licensed service providers and not the broader market.

“The GoldBod is simply a monopoly in the trading and export of gold… The regulatory function of the GoldBod relates only to its own licensed agents and not to competitors,” he stated.

He stressed that GoldBod would not regulate competitors but only its approved agents, making conflict of interest concerns unfounded.

Mr. Gyamfi reiterated that gold hoarding is illegal, citing Clause 68(1) of the GoldBod Bill, which prohibits individuals from hoarding gold without lawful authorization. He noted that this provision aims to prevent unfair market practices, including artificial scarcity and price manipulation by licensed agents entrusted with funds to procure gold for GoldBod.

On Friday, March 28, 2025, Parliament passed the Ghana Gold Board Bill 2025 into law, granting GoldBod exclusive rights over gold exports from the small-scale mining sector.

This means licensed traders and bullion dealers can no longer export gold independently.

GoldBod, established under the Ministry of Finance, is a key campaign promise by President John Dramani Mahama aimed at enhancing Ghana’s gold trade and strengthening the local economy.