Business News of Friday, 19 November 2021
Source: www.ghanaweb.live
Business stories that made headlines in the week
This week in the world of business has been momentous in Ghana.
From the 2022 budget statement, to the Monetary Policy Committee of the Central Bank holding its final scheduled meetings for 2021 among others.
We bring you some stories that made headline in the past week.
Development Bank Ghana receives operational license -
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Finance Minister, Ken Ofori-Atta has revealed government has formally received its operational license for the establishment of the Development Bank Ghana.
According to him, the DBG is expected to provide a powerful response to a long-standing desire of our businesses to have easier access to medium and long-term loans at affordable interest rates.
Delivering the 2022 budget statement before Parliament on Wednesday, Ken Ofori-Atta said, "Mr. Speaker, I have great news. On Friday, November 12 2021, The Governor of the Bank of Ghana formally handed over the license for the Development Bank Ghana.
“Not only will DBG, as a wholesale bank provide loans to financial institutions, it will also provide partial credit guarantees to complement the efforts of GIRSAL in agriculture and agribusiness.” Ken Ofori-Atta revealed.
Fuel prices to remain stagnant in second pricing window of November – IES
On the prices of petroleum products, the Institute for Energy Security (IES) has projected that prices is expected to remain stagnant in the second pricing window of November this year
The move is due to a 1.54 percent decrease in the price of the International Benchmark- Brent crude, 2.40 percent increase in the price of Gasoline, 0.74 percent increase in Gasoil price and 0.16 percent depreciation of the local currency against the US Dollar.
A statement issued by the Institute’s Research Analyst, Fritz Moses, explained, “the Institute for Energy Security (IES) projects for the price of fuel to remain stagnant for the window despite the increase in the price of finished products. This is in due to the recent increase in prices at the pumps.”
BoG MPC begins final scheduled meeting for 2021 from November 16 to 19
The Bank of Ghana’s Monetary Policy Committee has from Tuesday November 16 to Friday November 19, 2021, held its scheduled meetings to review the economic developments of the country.
The 103rd meeting of the Committee which will be it's sixth and final for the year is expected to entail the initiation of proposals for the formulation of the policies of the central bank, provision of statistical data and economic advice.
Governor of the Bank of Ghana, Dr. Ernest Addison, who is also Chairperson of the Monetary Policy Committee, is expected to make decisions that will influence the cost of credit in the country for the remaining months of 2021.
Among such decisions will be a review or maintenance of the monetary policy rate which was at the central bank’s 102nd meeting, kept unchanged at 13.5 percent citing an increase in public debt stock and inflation risks.
Government to generate GH¢500 million from e-levy in a month
Government says it is likely to rake in about GH¢500 million a month from the newly introduced e-transactions levy, Communications and Digitalization Minister, Ursula Owusu-Ekuful, has disclosed.
In a year, a total of GH¢9 billion would be generated from the new directive.
Ursula Owusu-Ekuful's comment comes after Ken Ofori-Atta announced the introduction of a 1.75% levy on electronic transactions.
Government abolishes road, bridge tolls
Finance Minister, Ken Ofori-Atta, has announced government's decision to abolish road tolls.
Delivering the 2022 budget statement in Parliament on November 17, the minister said inasmuch as money is needed for the fixing of deplorable roads in the country, the establishment of toll booths has led to congestions at various toll points.
Ofori-Atta further said that the congestion has affected productivity negatively.
"Mr. Speaker, our roads need fixing. Our roads are being fixed. It is true that more roads have been fixed and are being fixed over the last five years than any relative period in the entire history of our nation. We even want to do a lot more and this budget will cater for this.
"The congestion generated at the tolling points, besides creating these inconveniences, also leads to pollution in and around those vicinities. To address these challenges, Government has abolished all tolls on public roads and bridges. This takes effect immediately the budget is approved (after appropriation or now). The toll collection personnel will be reassigned. The expected impact on productivity and reduced environmental pollution will more than off-set the revenue forgone by removing the tolls," he declared.
