Tomatoes Importation
Tomatoes Importation

Ahead of the much awaited mid-year budget review, a senior banking executive on Tuesday gave the economy of Ghana a clean bill of health in spite of current challenges.

Speaking with stakeholders at the Ghana Stock Exchange (GSE), Sionle Yeo, managing director of Societe Generale Ghana, praised the handling of the economy since January last year.

“The macroeconomic indicators have been well aligned since the beginning of last year as public finance management by the new government is stable,” he observed.

According to Yeo, these conditions have been a major factor for investor confidence the country currently enjoys.

Although in absolute terms Ghana’s public debt rose to 145 billion Ghana cedis (31.29 billion U.S. dollars) at the end of last February, up from 142.5 billion cedis (30.75 billion dollars) in December, the debt-to-GDP ratio narrowed to 60 percent, from the previous 69.8 percent in December, he said.

Since 2006, Societe General has been acting as the lead arranger for the syndicated loan Ghana secures for its annual cocoa purchases, contributing a total of 800 million dollars to that financing.

Between 2009 and 2018, the French bank also supported Ghana’s development finance with a total of 650 million dollars in energy, power plants and road projects.

“We will continue to remain as a credible partner of the government of Ghana in its development agenda,” Yeo pledged.

“The macroeconomic situation has been improving and you see that clearly in how inflation has been moving downwards from 15.5 percent in December 2016 to 10 percent last month,” he noted.

However, in an interview with Xinhua, Edem Akpenyo, managing director of First Bank Brokerage Services, said although the economy has been doing well, there are signs of liquidity shortage facing the country.

“The fact that the government sought to increase some taxes or introduce new tax measures during the mid-year review as well as sell some assets of state energy company Volta River Authority showed that there were serious liquidity challenges facing government,” the analyst said.

Finance Minister Ken Ofori-Atta will present the mid-year budget review to parliament on Thursday.

There are indications of new tax measures going to be introduced to raise money for special government initiatives. Enditem


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