All posts by Jeffrey Asiedu

Ghana Financial Sector News Update

Ghana Eurobonds Extend Gains As IMF Program To Ease Financing Stress

  • Eurobonds rally after Ghana’s about-face on IMF program
  • Country has $7.3 billion principal payments by 2032: Moody’s

Ghana’s dollar bonds gained for a second day amid investor optimism the country’s decision to seek an International Monetary Fund program will ease refinancing stress.

The West African nation’s Eurobond maturing in 2027 rose 1% to 65.82 cents in the dollar by 2:52 p.m. in Accra, the capital, the highest in more than six weeks. The bonds had been trading at distressed levels, with yields above 20%, before Ghana announced last week it will engage the IMF for balance-of-payments support.

“The market had been concerned over the government’s financing needs in the short term,” said Stephen Bailey-Smith, a Kolding, Denmark-based investment strategist at Global Evolution. “An IMF program may also provide some gravitas to the government’s claims of fiscal reform.”

While Ghana aims to cut its budget shortfall to 7.4% of gross domestic product this year from an estimated 12.1% of GDP in 2021, that is becoming more difficult as price pressures emanating from Russia’s invasion of Ukraine take a toll on economic activity.

The inflation rate rose to more than an 18-year high of 27.6% in May. The economy, which grew 5.4% last year, expanded less than expected in the first three months of 2022 at 3.3%. Public debt increased to 78% of gross domestic product at the end of March from 76.6% in December.

Debt Vulnerabilities

“A potential IMF program could play an important role in helping the country entrench its fiscal consolidation path and reduce debt vulnerabilities,” said Samantha Singh, a Johannesburg-based Africa strategist at Absa Bank Ltd. “The sooner these policies are implemented, it could also reduce the severity of any potential liability management.”

An IMF team will be in Ghana to start talks with the Ghanaian authorities from July 6, Information Minister Kojo Oppong Nkrumah said on Monday. 

While rollover risk is expected to intensify for many African sovereigns over the next decade, due to the war in Ukraine, lower-rated borrowers like Ghana, Tunisia, Kenya, and Egypt are already facing difficulties securing market-based financing and are vulnerable to a rise in borrowing costs, Moody’s Investors Service said in a report last week.

Ghana has $7.3 billion principal repayments due on outstanding eurobonds by 2032, according to Moody’s. Egypt has $26.9 billion, Kenya $5.1 billion and Tunisia $3 billion.

The IMF and other multilateral lenders helped stabilize vulnerable African markets through emergency funding during the pandemic, but not all of them chose to accept assistance, said Kaan Nazli, a money manager at Neuberger Berman.

“You had a divergence between those like Cameroon and Senegal going for further IMF support and undertaking the necessary reforms, and those who thought they could go on their own – and maybe they would be able to if we didn’t have another massive economic shock from Russia’s invasion of Ukraine,” Nazli said. “We’re seeing some of those countries take a more realistic approach now, in light of the significant risks to the global economy and impaired access to capital markets.”

Credit: Bloomberg

(By Moses Mozart Dzawu)

Ghana Stock Exchange To Begin Trading Commercial Papers

The Ghana Stock Exchange has initiated a process to formalise the trading of commercial papers – unsecured, short-term fixed-income securities issued by a corporation – on the local bourse.

Commercial paper is short-term debt securities or loans issued by corporate bodies, usually large banks or corporations. This debt security has a tenure of 60 to 90 days

In an interview with the B&FT, the Deputy Managing Director of the Exchange, Abena Amoah, said: “Another thing we are looking at is also growing or establishing a formal market for the issuance, listing and trading in commercial paper. So, in other markets, they have rules around it. You’ll find that many of them require a rating to give investors confidence that this credit is rated at B and so this is the risk level, and I can price it different from an A-rated institution for instance”, she said.

Ms. Amoah noted that the exchange is taking a multi-stakeholder approach, the same as what was used to set up the fixed income market, in order to come up with a framework for the commercial paper market. “There are regulations around that who can participate in it, who can invest in the market etc.? And that’s another product we want to launch to augment the Ghana fixed income market and help it grow faster,” the Deputy MD said.

Currently, there is an existing commercial paper market that is informal; however, the introduction of this formal market will offer investors more safety net against risks of default, and make investors more comfortable operating in the market.

“Lending is a critical part of capital formation. So for short-term loans, as long as the economy is growing, as long as businesses are growing, as long as our GDP is growing, companies have capital needs. So, where it can go is really where our financial institutions want to go, and our businesses want to go, too. When we look at existing markets on the FMDQ Securities Exchange [Nigeria’s largest Exchange], the commercial paper market is actually bigger than their corporate bond market significantly,” she said.

The total value of Commercial Papers (CPs) quoted on FMDQ Exchange in March 2022 was N72.06billion, according to FMDQ Exchange financial markets’ monthly report for March.

The Deputy MD stated that corporates will always need large short-term financing loans, as well as long-term. “So, we want to provide an organised market where investors have the confidence to say that this market is regulated.

So, that is what an organised commercial paper market can be. But we are very much interested and very much focused on growing the long end of the market as well because our key drive remains providing access to long-term capital which is missing largely in our market,” she explained.

This doesn’t mean that the formal trading platform will be the only place where commercial paper will be issued. Some investors would prefer to trade on the over-the-counter (OTC) market outside of the formalised market.

Credit: B&FT online

(By Joshua Worlasi AMLANU)

Asante Gold Commence Trading On The Ghana Stock Exchange

Asante Gold Corporation (CSE:ASE | GSE:ASG | FRANKFURT:1A9 | U.S.OTC:ASGOF)

(“Asante” or the “Company”) is pleased to announce that further to its application for a secondary listing by introduction on the Main Market of the Ghana Stock Exchange (the “GSE”), the Company has received final approval from the Ghana Securities and Exchange Commission and the Ghana Stock Exchange to commence trading.

Douglas MacQuarrie, Non-Executive Chairman stated, “It is with a great sense of ‘having arrived’ that Asante is now listed on Ghana’s premier stock exchange, one of the best performing stock exchanges in Africa in 2021. This listing complements our listings in Canada and in Germany and provides our Ghanaian shareholders, and potential new investors, the opportunity to invest and trade their shares locally in Ghana.”

Asante’s CEO, Dave Anthony, added, “Asante has significant ownership by both private Ghanaian investors and Ghanaian institutions, and the Company is excited to be able to offer Ghana’s investment community and all interested investors the opportunity to participate in our growth as we work to achieve our vision of becoming a Tier-1 gold producer in West Africa.”

Black Star Advisors Limited and Black Star Brokerage Limited acted as Arranger and Sponsoring Broker respectively to Asante in respect of the Listing on the Ghana Stock Exchange.

 About Asante Gold Corporation

Asante is a gold exploration, development, and operating company with a high-quality portfolio of projects in Ghana. Asante is currently focused on closing the acquisition of the Chirano Gold Mine from Kinross Gold Corporation and developing to production its Bibiani and Kubi Gold mines located on the prolific Bibiani and Ashanti Gold Belts. Asante has an experienced and skilled team of mine finders, builders and operators, with extensive experience in Ghana.

Asante is listed on the Canadian Securities Exchange, the Ghana Stock Exchange and quoted on the Frankfurt Stock Exchange. Asante is also exploring its Keyhole, Fahiakoba and Betenase projects for new discoveries, all adjoining or along strike of major gold mines near the centre of Ghana’s Golden Triangle.

Trading will commence under the symbol ‘ASG’ at the opening on June 29, 2022.

Listing Statistics

Price on CSE (as at date on day of Listing) ; CAD$1.58

Initial Listing Price on GSE; GHS 8.87

Number of Ordinary Shares listed by Introduction; 315,007,462

Market capitalization at Listing Price (CAD$) 497,711,780

Market capitalization at Listing Price (GHS) 2,793,158,565

Credit: Asante Gold

Enterprise Group Records GH¢122 mln (US$15 mln) Profit ; Declares Dividend Payment Of GH¢0.744

Leading Insurance Company, Enterprise Group PLC, has recorded an increase in revenue of 37 percent for the year ended 2021, amounting to GHS1.16 billion.

This growth in revenue, according to the company, resulted in profit after tax of GH¢122 million for the year under review.

This however represents a decrease in profit after tax compared to the GHS146 million recorded in the previous year.

At its twelfth Annual General Meeting held in Accra, the company declared a dividend of GHS0.744 for the year 2021, a 20 percent increase in the dividend paid in 2020.

Following the 37 percent increase in revenue for the year ended 2021, the company is optimistic of a consolidated performance in 2022.

The company insists the few setbacks faced in 2021 are not obstacles to its outlook this year.

Chief Executive Officer of Enterprise Group PLC, Keli Gadzekpo spoke to Citi Business News on the sidelines of the AGM.

“In 2020, there was a dip in our claims but in 2021, we saw the increase. So our interpretation of it is that the pass-through effect from 2020 had come through in 2021. It’s not much a problem but we’re keeping our eye on it.”

“2022 and the year after are years of consolidation, which is positive for us. We’ve done a lot of things. We have a lot of moving parts so we’re anxious to bear those moving parts and charge ahead. So we see growth, performance and increased profitability coming,” he assured.

Credit: citibusinessnews

(byEllen Dapaah)

Ghana’s New Gold Refinery To Take Off In August 2022

A technical committee comprising the Ministry of Lands and Natural Resources, Minerals Commission and the Chamber of Mines have inspected Ghana’s newest gold refinery called the Royal Ghana Gold.

Speaking to Joy Business, Deputy Lands and Natural Resources Minister, George Mireku Duker, said when the refinery – which has a capacity of refining 300 kilogrammes of refined 24 karat gold per day is certified – will complement Ghana’s position as a leading producer and gold refinery in the world.

“It is good news for us as a country to have a refinery of that stature. It’s going to inject more finance into the economy.”

“It will create employment in the natural resource economy and propel us as one of the leading producers and gold refineries in Africa,” he added.

Meanwhile, the Chamber of Mines has raised concerns over the lack of technology transfer to enable Ghana independently refine its gold.

It comes as majority of experts manning the Royal Ghana Gold refinery are expatriates. Chief Executive of the Chamber of Mines, Suleman Koney told Joy Business the narrative must change.

“The reality is that expatriates cost more money. It will be in the interest of the refinery to train more Ghanaians to be able to do it”.

“We have a lot of manpower but unfortunately we don’t have the technology to refine gold. We hope in the next few years, when production dates, we should have a plan with the minerals commission for technology transfer,” he told Joy Business.

Royal Ghana Gold Limited is a Joint-Venture with PMMC (Government of Ghana).

The gold refinery to be located in Accra will produce gold bullion bars.

The gold refinery will be made up of world-class equipment, keeping in mind the LBMA standards.

Full scale production is expected to commence in August

Credit: myjoyonline

(By Charles Ayitey)

Fidelity Bank Ghana Records GH¢1.1 bln (US$137 mln) In Profit Before Tax

Fidelity Bank has recorded a 32percent increase in profit before tax (PBT) for 2021.  This came to light at the bank’s recent Annual General Meeting (AGM) which was held virtually for its shareholders to review the performance of the bank for the year ended December 31, 2021.

Within the period under review, the bank posted a strong growth in key financial metrics across its various business segments. In addition to the record increase in PBT, the bank also recorded a revenue of GH¢1.1 billion, 14percent above the 2021 figure.

Addressing shareholders at the AGM, Board Chairman of Fidelity Bank Ghana, Edward Effah, stated that despite significant external and domestic challenges, the bank remained resilient, turning in a strong performance in 2021.

He further indicated that this buoyant performance was largely underpinned by the Bank’s all-encompassing transformation journey which has seen Fidelity leverage cutting edge technology to enhance convenience and deliver superior customer experience across the Bank’s various touchpoints.

Mr. Effah stated that, “the Group’s balance sheet remained robust with a significant year-on-year increase of 44percent to close the year at GH¢13.36 billion, an increase from GH¢9.28 billion in 2020. The growth was funded mainly from an increase in customer deposits and short-term borrowings that financed corresponding short-dated investments.”

Mr. Effah further asserted that “Looking ahead, I have great confidence in the future of our Bank. Regardless of market conditions, our focus will always remain on what has sustained Fidelity Bank over the last 15 years: our people, our culture, and above all, our response to the evolving needs of our clients. In doing so, we are well-positioned to compete even better in the years ahead and to deliver higher, more sustainable returns for our shareholders and other stakeholders.”

At the AGM, the Bank reiterated the significant impact of its investments in digital innovations during the year under review in line with its transformation agenda. Consequently, by the end of 2021, 89percent of all transactions were carried out via the bank’s digital channels. This impressive feat bears testament to Fidelity’s leadership in digital banking and its remarkable success in migrating customers unto digital platforms.

In his report at the AGM, the Managing Director of the Bank, Julian Opuni, stated that, “2021 marked the Bank’s fifteen years of existence as a commercial bank. Fifteen years down the line, we are pleased with the successes we have chalked over the years with support from all our stakeholders and we believe that we are well positioned to continuously serve our customers better.”

He added that, the bank’s ambition of becoming a top three bank in Ghana by 2024 is on course with a focus on some key areas to achieve this mandate: digital innovation, data insights, value chain optimization, fit for future technology and talent optimization. He also stated that the bank’s transformation journey has already yielded some significant gains for the bank. Through the efforts of the Transformation Office, Fidelity achieved 113percent of its revenue target for the year and mobilized low-cost deposits in excess of GH¢240 million.

The bank also gave shareholders an overview of their notable accomplishments and honors received during the fiscal period under consideration. Consequent to the Bank’s remarkable business performance in 2021, the bank and its leadership were duly recognized and accorded several laurels by reputable local and international organizations within the period.

These include: The Bank of the Year Award at the Ghana Business Awards, Best Bank in Ghana by EMEA Finance, Best Treasury & Cash Management Bank in Ghana Award by the Global Finance Magazine, Agency Banking Bank of the Year Award by Instinct Business Finance Innovation, Outstanding response to COVID-19 and SME Loans Award by the Middle East and Africa Retail Innovation Banking Awards among others.

The remarkable growth of Fidelity Bank over the last 15 years is testament to the vision and resilience of the leadership and staff of the bank, both past and present. Fidelity’s story shows that the indomitable Ghanaian entrepreneurial spirit is still alive and demonstrates that “it can be done” in Ghana by Ghanaians.

Fidelity Bank Ghana is optimistic that in 2022 and beyond, buoyed by the impact of its ongoing Transformation Agenda, it will continue to leverage on technology and the Bank’s strategy, people, and systems to give customers a satisfying banking experience and enhance shareholder value

Credit: B&FT online

Unilever Ghana PLC Records GH¢108 mln (US$13.5 mln) Profit.

Managing Director of Unilever Ghana PLC, George Owusu-Ansah, has stated that it is optimistic about his outfit’s growth prospects.

This comes as the company recorded an increase in revenue of about 23% for the year 2021 despite the impact of the lingering COVID-19 on businesses.

Taking its turn at the ‘Facts Behind The Figures’ forum, organized by the Ghana Stock Exchange (GSE) for listed companies, Managing Director of Unilever Ghana PLC, George Owusu-Ansah, said the company’s revenue increased to Gh¢ 559m in 2021, up from the Gh¢456m recorded in 2020.

This represents a 23 percent increase in turnover over the period.

“The company ended the year having recorded a gross profit of Ghc108m, representing a 43 percent increase over the previous year’s performance. Overall, the company’s performance was an improvement over the previous year’s, driven largely by significant investments it made in product innovations and building the equity of its brands.

38 percent of the company’s portfolio gained market shares as a result. The company prioritized the reduction of waste from its operations,” he said.

George Owusu-Ansah, also noted that Unilever Ghana is doing well on its journey to rediscovering its greatness through its purpose-driven brands.

The Managing Director is upbeat about Unilever’s sustainability programmes.

He mentioned the company is investing to unlock growth, build talent and help develop the skills of the youth.

“The company’s objective also remains to make sustainable living commonplace for all,” he added.

Credit: citibusinessnews

(by Nerteley Nettey)

Ghana Now Controls 24% Of The US$200 mln Global Yam Export Market – GEPA

The Ghana Export Promotion Authority (GEPA) said yam exports grew at an annual rate of 14% in 2020-2021 and an average of 9% from 2017 and 2021

Exports of yam tubers reached a record-high of US$48 million last year, according to data from the Ghana Export Promotion Authority (GEPA) – making the country the world’s largest exporter of yam.

The country now controls 24% of the US$200 million global export market, growing its export value from US$38.5 million in 2018 to US$48.2 million in 2021.

GEPA said exports grew at an annual rate of 14% in 2020-2021 and an average of 9% from 2017 and 2021.

The USA alone imported US$87 million worth of yam from the world in 2021. Among its top suppliers were: Jamaica, 37.4%; Ghana, 21.9%; Costa Rica, 10.8 percent; Colombia, 8.7%; and Brazil, 8.2%,” GEPA said in a yam industry report.

“The United States of America’s imports of yam from Ghana represent 39.6% of the total global value of yam exported by Ghana,” GEPA added.

Meanwhile, globally, Jamaica is Ghana’s closest competitor, ranking second in export of yam. Its total exports were valued at US$39 million in 2021.

Jamaica had 82.8% of its yam exports go to the United States market, as compared to the 39.6% of Ghana’s exports to the same market.

The leading global exporters of yam were Ghana, US$48 million; Jamaica, US$39 million; United States of America, US$22 million; Japan, US$21 million; and China, US$20 million.

Growth forecast

The global yam market is projected to register a compound annual growth rate of 3.5% between 2020 and 2025 says Mordor intelligence, a market research firm.

According to the International Institute of Tropical Agriculture, most of the world’s production comes from West Africa which represents 94% – with Nigeria alone producing 71%. However, Ghana remains the region’s largest exporter of the starchy tuber.

Challenges facing yam production

Just like any other agricultural produce, constraints to its production include high labour demand and other inputs such as planting materials, unreliable sources of credit, pests and diseases, declining soil fertility, and unpredictable weather conditions.

On commercial terms, yam production is constrained by lack of modern storage facilities, absence of ready market and a well-coordinated national policy to boost production and export.

For instance, every year there are reports of heaps of yam being left to rot across many farming communities because they lack storage facilities.

“We do not have storage facilities; we leave the tubers in the open and exposed to the sun, causing the yam to rot,” said Barnabas Abu, a yam-farmer based at Yendi-Bimbilla in the Northern Region.

He said the situation gets particularly bad during January and May, due to excessive heat within that period.

Credit: Assaseradio

(Joseph Appiah-Dolphyne)

Access Bank Ghana Records GH¢501 mln (US$63 mln) Profit In 2021

Profit before tax grew from GHS 355 million in 2020 to GHS 501 million in 2021, recording a 41% growth while total operating income grew from GHS 567 million in 2020 to GHS 728 million in 2021, recording a 28% increase.These were revealed at the annual “Facts Behind The Figures” session, held virtually in collaboration with the Ghana Stock Exchange.

The platform offers an opportunity for listed companies to present their performance to key stakeholders including investors and shareholders while receiving feedback from these stakeholders.

Speaking at the event, Managing Director of Access Bank Ghana Plc, Olumide Olatunji was excited about the confidence reposed in the Bank by its customers, evidenced by the Bank’s significant growth recorded across key performance metrics and commended the efforts made by all stakeholders to achieving the feat.

“The 28% growth in Gross earnings is mainly due to increase in interest income from increased yields on the back of reduced cost of funds from 5.87% in 2020 to 4.76% in 2021. He said due to efficient treasury activities, the Bank recorded a 101% increase in net trading income, from GHS 151 million to GHS 305 million as well as a 26% year-on-year increase in fee and commission income from GHS 69 million to GHS 87 million.

Olumide noted that the Bank had a deliberate and disciplined outlook for 2022, with a targeted focus on strategic expansion and growth.

The Bank is focused on optimizing operational efficiency to ensure it is well positioned to withstand any shocks in an increasingly volatile operating environment as the world continues to learn to live with Covid-19 and rising inflationary pressures. The Bank will continue to invest in tailored products to meet the needs of customers by offering best-in-class user experiencein retail and consumer banking services.

All these are aimed at enhancing customer satisfaction and returning value to customers”, he added.Olumide also hinted among other things that Access Bank is committed to becoming a bank of choice in Ghana, as part of its retail banking growth & wholesale banking consolidation aspiration.

He touched on the Bank’s commitment to international trade and payments; “Under our universal gateway strategy, we are optimizing payments, remittances, transfers, trade, cross-border, and electronic banking to serve our customers to achieve our strategic vision of being the preferred bank in international trade transactions within the African continent and beyond”; he said.

Ghana GDP Growth Rate Slows To 3.3% In 1st Qtr, 2022

Ghana’s economy grew 3.3 per cent in the first three months to March 2022 compared with 3.6 per cent in the same period of 2021, the Ghana Statistical Service said on Wednesday.

However, the first quarter growth is the lowest since the country recovered from the contractions recorded during the COVID-19 pandemic.

Addressing a press conference on the Gross Domestic Product for the first quarter, Professor Samuel Annim, the Government Statistician, said the growth was said growth was driven by five areas of Information and Communication 1.0 per cent, Crops and Cocoa 00.9 per cent, Transport and Storage 0.4 per cent, Manufacturing 0.3 per cent and Trade: Repair of Vehicles, Household goods 0.3 per cent.

Overall, the year-on-year quarterly GDP growth rate for Agriculture was 5.6 per cent for the first quarter of 2022 with the fishing sub-sector recording the highest year-on-year growth rate of 26.1 per cent while the Forestry & Logging sub-sector recorded the lowest, with a contraction of 0.5 per cent.

The year-on-year quarterly GDP growth rate for the Industry sector is 1.3 per cent for the first quarter of 2022.

The Water Supply, Sewerage, Waste Management & Remediation Activities sub-sector recorded the highest year-on-year quarterly GDP growth rate of 25.4 per cent for 2022, while the Construction sub-sector recorded the lowest, with a contraction of negative 2.6 per cent.

For the first quarter of 2022, the Services sector recorded a year-on-year quarterly GDP growth rate of 3.7 per cent.

On a year-on-year basis, the Information & Communication sub-sector recorded the highest year-on-year quarterly GDP growth rate of 26.6 per cent while the Professional, Administrative & Support Service activities sub-sector recorded the lowest growth of negative 12.8 per cent.

Overall, the Services sector remains the largest sector of the economy with a 45 per cent share of GDP while that of Industry was 32 per cent and Agriculture 23 per cent.

Credit: GNA

Ghana Fuel Shortage Looms As Monthly Fuel Import Bill Jumps To US$450 million

*Monthly fuel import costs at $450 million: people familiar say


*Central bank reluctant to spend scarce dollars on fuel imports

Ghana faces a looming fuel shortage as the central bank rations dollars after oil prices surged following Russia’s invasion of Ukraine.

The monthly fuel import bill for the West African nation jumped to $450 million in May, from $250 million in January, according to two people with knowledge of the matter.

The central bank is only offering about $100 million a month at its foreign exchange auctions, and licensed bulk distributors can no longer plug the shortfall in the black market, the people said, asking not to be identified as the matter isn’t public.

African governments face stark choices as Western sanctions on Russia disrupt global energy markets and prices soar. Though Africa is home to several major producers of crude oil, the continent has limited capacity to turn that into fuel for cars, trucks and planes.

Ghana’s central bank is reluctant to spend its limited dollars on importing fuel, though it’s also looking at ways to boost its foreign exchange holdings, the people familiar said.

Those reserves stood at $8.34 billion at the end of April 2022, down from $9.7 billion at the end of last year, according to the central bank.

The nation’s challenge has been increased as the cedi weakened 22% against the dollar this year, the worst performance among African currencies tracked by Bloomberg.

The country’s inflation rate  jumped to 27.6% in May, the highest level in more than 18 years, as food and transport costs surged.

A spokesman at the Bank of Ghana could not immediately comment when reached by phone. A spokesman for the Ghana Chamber of Bulk Oil Distributors also declined to comment.

Credit: Bloomberg

(By Ekow Dontoh)

GOIL Ghana Records GH¢99 mln (US$12.4 mln) Profit

  • set to complete US$35m bitumen plant June ending
  • New businesses to deliver future growth

GOIL Company Limited recorded a net profit of GH¢99million in 2021, an increase of nine percent over the previous year.

The profit growth was driven by improvement in fuel sales volumes of 886.6 million litres, over 11 percent above that of the previous year, and also above the industry’s average of nine percent despite what the company described as challenging nature of the year under review.

Consequently, earnings per share increased from GH¢0.23 in 2020 to GH¢0.253 in 2021, while its total assets increased from GH¢2.1billion to approximately GH¢2.5billion during the period under review.

“Our financial performance meant the Board was able to approve a final dividend of (Gh¢0.047) per share (2020: Gh¢0.045),” its Board Chairman, Reginald Daniel Laryea, said during the company’s 53rd Annual General Meeting in Accra.

The biggest contribution to sales revenue came from two main products, diesel and super or petrol, particularly the Ron 95 variety.

“Our mix of other products including lubricants and specialised sales to specific industries like the mines and bunkering achieved mixed results, their contribution to the bottom-line was, however, positive.

“We achieved a 21 percent growth in our aviation business and maintained our dominant position in the local aviation market. We continue to seek out the right partnerships to guarantee our long-term growth,” he added.

Bitumen plant 

The downstream oil company said works on its US$35million bitumen plant are 99 percent complete and will come onboard by June ending this year.

The plant, a partnership with Societé Multinationale de Bitumes (SMB) of Côte d’Ivoire, was initially scheduled to be completed last September but for what GOIL described as COVID-19 restrictions and technical hitches.

However, Group Chief Executive Officer and Managing Director of the state-owned firm, Kwame Osei-Prempeh, said the plant with storage capacity of 6,000 metric tonnes of base bitumen and production capacity of 240 metric tonnes per day for each of the bitumen emulsion and the polymer modified bitumen (PMB), will be ready by end of this month.

New businesses to deliver future growth

The company is banking on its new businesses to spearhead its growth in 2022 and beyond.

“We are confident that the bold initiatives we have outlined, especially our LPG & Bitumen plants, alongside our determination to find a suitable partner to replace Exxon Mobil in our upstream endeavour are game-changers that will definitely propel GOIL to the next level,” Mr. Laryea noted.

Another area that GOIL is looking to for new opportunities, he said, is in the global technological space: “The opportunities that these advancements present have driven us to exploring new business opportunities such as the electric powered transportation systems. Entering that market will help GOIL and Ghana in general to reduce carbon emissions, in addition to GOIL remaining competitive in the industry.

“We are optimistic we will remain vigilant, diligent and focused on the key value drivers of the growth of our business.

Credit: B&FT online

(By Thomas Adingo)

GOIL Ghana Records GH¢99 mln (US$12.4 mln) Profit

  • set to complete US$35m bitumen plant June ending
  • New businesses to deliver future growth

GOIL Company Limited recorded a net profit of GH¢99million in 2021, an increase of nine percent over the previous year.

The profit growth was driven by improvement in fuel sales volumes of 886.6 million litres, over 11 percent above that of the previous year, and also above the industry’s average of nine percent despite what the company described as challenging nature of the year under review.

Consequently, earnings per share increased from GH¢0.23 in 2020 to GH¢0.253 in 2021, while its total assets increased from GH¢2.1billion to approximately GH¢2.5billion during the period under review.

“Our financial performance meant the Board was able to approve a final dividend of (Gh¢0.047) per share (2020: Gh¢0.045),” its Board Chairman, Reginald Daniel Laryea, said during the company’s 53rd Annual General Meeting in Accra.

The biggest contribution to sales revenue came from two main products, diesel and super or petrol, particularly the Ron 95 variety.

“Our mix of other products including lubricants and specialised sales to specific industries like the mines and bunkering achieved mixed results, their contribution to the bottom-line was, however, positive.

“We achieved a 21 percent growth in our aviation business and maintained our dominant position in the local aviation market. We continue to seek out the right partnerships to guarantee our long-term growth,” he added.

Bitumen plant 

The downstream oil company said works on its US$35million bitumen plant are 99 percent complete and will come onboard by June ending this year.

The plant, a partnership with Societé Multinationale de Bitumes (SMB) of Côte d’Ivoire, was initially scheduled to be completed last September but for what GOIL described as COVID-19 restrictions and technical hitches.

However, Group Chief Executive Officer and Managing Director of the state-owned firm, Kwame Osei-Prempeh, said the plant with storage capacity of 6,000 metric tonnes of base bitumen and production capacity of 240 metric tonnes per day for each of the bitumen emulsion and the polymer modified bitumen (PMB), will be ready by end of this month.

New businesses to deliver future growth

The company is banking on its new businesses to spearhead its growth in 2022 and beyond.

“We are confident that the bold initiatives we have outlined, especially our LPG & Bitumen plants, alongside our determination to find a suitable partner to replace Exxon Mobil in our upstream endeavour are game-changers that will definitely propel GOIL to the next level,” Mr. Laryea noted.

Another area that GOIL is looking to for new opportunities, he said, is in the global technological space: “The opportunities that these advancements present have driven us to exploring new business opportunities such as the electric powered transportation systems. Entering that market will help GOIL and Ghana in general to reduce carbon emissions, in addition to GOIL remaining competitive in the industry.

“We are optimistic we will remain vigilant, diligent and focused on the key value drivers of the growth of our business.

Credit: B&FT online

(By Thomas Adingo)

Ghana Govt Withdraws Tax Exemptions Bills From Parliament

The Government has withdrawn the Tax Exemptions Bill 2021, which seeks to prevent a significant loss of government revenue from Parliament.

This is after Deputy Finance Minister John Kuma has sought the leave of the House to withdraw the bill and to re-laid it later in the House.

The Exemptions Bill was laid in Parliament on November 16, 2021, and referred to the Finance Committee of Parliament for consideration.

The Exemptions Bill when passed, is expected to make substantial savings for the Government of Ghana.

For years, experts have attempted to quantify the losses and the depletion to the state coffers occasioned by the unbridled grant of tax waivers.

Moreover, the government itself has estimated that the Exemptions Bill when passed, stands to save GH¢500 million of revenue that otherwise would be lost to tax exemptions in 2019.

This amount is more than the yield of the tax increases that was announced.

“Failure to take action on exemptions is therefore costing the nation dearly and prompting the resort to tax hikes to plug revenue shortfalls,” Mr Kuma said, adding that, the Government also cited for example that in 2011, tax exemptions/tax expenditures cost the nation 6.13 percent of Gross Domestic Product (GDP), translating in US$ 2.4 billion.

In 2013, Ghana lost 5.2 percent of its GDP to tax expenditures amounting to USD$ 2.5 billion, according to the International Monetary Fund.

Credit: GNA

(By Christopher Arko)

Ghana Fuel Prices To Shoot up by 15% For The Rest of June—IES

There will be a “sharp rise” in prices of petrol and diesel for the rest of June 2022, the Institute for Energy Security (IES) has projected.

The IES said petrol price will increase by about 10 per cent to sell above GhS11 per litre and diesel by about 15 per cent to sell above GhS14 per litre.

The price of Liquified Petroleum Gas (LPG) is however projected to fall further by 5 per cent from its current price, the Institute added.

Mr Fritz Moses, Research Analyst, IES, told the Ghana News Agency that the increment will take effect at the various pumps by Monday, June 20, 2022.

He attributed the expected increment to the continuous depreciation of the cedi against the US Dollar and the rise in the international market prices for petrol and diesel.

He said the cedi depreciated by 0.86 per cent in the just-ended pricing window (June 1 to 15, 2022) while the international market price for petrol and diesel shot up by 14.81 per cent and 17.67 per cent, respectively.

Prices of fuel on the local market increased more than 4 per cent on average terms in the just-ended pricing-window. The price of petrol and diesel increased by 5 per cent and 3 per cent respectively.

The IES said all the Oil Marketing Companies (OMCs) it monitored in the window under review increased their prices at the pump.

“Per the IES Marketscan, the current national average price is pegged at GhS10.00 per litre, and GhS12.15 per litre for Gasoline and Gasoil respectively.

“This is an increase of 2.5 per cent on the previous average per litre price of GhS9.75 for Gasoline and a 3.75 per cent increase over the previous Gasoil average price of GhS11.71 per litre,” it said.

Credit: GNA

(By Edward Acquah)