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$1bn IMF Condition-Free Support Arrives Today

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$1bn IMF Condition-Free Support Arrives Today

Ghana will today receive $1 billion from the International Monetary Fund (IMF) as free unconditional money to be spent to support the economic recovery efforts.

The amount is the country’s share of the increased allocation of funds to the IMF by its 190 member countries.

Known as special drawing rights (SDR), the $1 billion, which will hit the account of the Bank of Ghana (BoG), has been accessed based on the value of shares that Ghana holds in the fund, which is SDR793 million.
As a result, the money will not come with the usual conditionalities that normally accompany financial supports from the Bretton Woods institution.
The money comes at a time when COVID-19 related expenditures have exacerbated the debt situation, widened the fiscal deficit and starved critical infrastructural projects of funds.

Impact

The Resident Representative of the IMF to Ghana, Dr Albert Touna Mama, who confirmed this to the Daily Graphic, said the “allocation is a ‘shot in the arm” for the Ghanaian economy.”
“This is a billion dollars in unconditional liquidity. It can be used to pay for health care, support the economic recovery or shore up the country’s foreign exchange reserves,” Dr Touna Mama said in an email response to enquiries from the Daily Graphic.
“This SDR allocation provides an alternative to borrowing because Ghana does not need to reimburse the fund,” he added.

Sovereign decision
When asked how he expected the country to apply the funds, Dr Touna Mama said the government was at will to decide on that.
“How SDRs are used is a sovereign decision and depends very much on Ghana’s priority areas and circumstances. Of course, the only expectation is that transparency and principles of good governance should be respected,” he said.
Since the beginning of the year, the IMF has been calling for a comprehensive audit of COVID-19 expenditures.

Dr Touna Mama said the $1 billion injection into the Ghanaian economy followed the approval by the IMF Board of Governors that the SDR be increased to help make resources available to member countries in response to the ramifications of the COVID-19 pandemic.
The SDR was raised to SDR456 billion, equivalent to $650 billion, this month, making it the fourth of its kind and the largest in the fund’s 27-year history.
Dr Touna Mama said the increment was befitting, given the unprecedented nature of the pandemic.
Expatiating on its impact on the economy, the Resident Representative said the allocation was not a loan as it represented Ghana’s share of the $650 billion worth in SDR reserve assets created by the fund and distributed to its members.

Impact on cedi

The Governor of the BoG, Dr Ernest Addison, said in a separate interview that the central bank was pleased with the development, given its expected impact on the cedi.
“You see that the cedi has been relatively strong with support from strong reserves of about five months of import cover. If we add this, that should raise it higher and make the currency much stronger. So we are pleased,” he added.

Background

When received, it will bring to $2 billion the total amount the fund has disbursed to the country since the outbreak of the COVID-19 pandemic in March last year.
In April last year, the IMF approved $1 billion for the country under its rapid credit facility (RCF) programme to enhance the country’s response to the pandemic.
The approval was not tied to the usual IMF conditionalities.
Conversely, the fund disbursed a grant of $925.9 million to Ghana over four years under the Extended Credit Facility programme that spanned 2015 to 2019.

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Three Human Heads In The Fridge Of Footballer And Sports Commentator (Fire Man)

 

 

 

 

 

 

Source: Graphic.com

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Accomplished Diaspora Entrepreneur and Philanthropist Chairs GIPC BOARD

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Accomplished Diaspora Entrepreneur and Philanthropist Chairs GIPC BOARD

Entrepreneur, Philanthropist and Executive Chairman of KGL Group, Mr. Alex Apau Dadey, has been conferred the board chairman of the Ghana Investment Promotion Centre, GIPC. This comes off after he was in January 2018, appointed onto the Governing Board of the Ghana Investment Promotion Centre (GIPC) by the President of Ghana, His Excellency Nana Addo Dankwa Akufo-Addo, in recognition of his contribution towards the promotion of investment in Ghana.

Mr. Alex Apau Dadey has over 30 years’ experience working across multiple industries and sectors such as Fintech, Logistics, Agric, Property Development and Commerce around the globe, with major focus of his practice in the United Kingdom and Ghana.

As part of his responsibilities as Board Chair, he will be responsible for leading the Board and focusing on strategic matters, play a pivotal role in overseeing the Centre’s business as well as setting high governance standards.

Most recently, Alex Dadey established the KGL Group – a wholly owned Ghanaian group, consisting of six subsidiaries operating in several jurisdictions and multiple sectors including Fintech, Logistics, Agric, Property Development and Commerce, where he serves as Executive Chairman.

Underpinning Alex’s three-decade track record of success is his commitment to building an inclusive financial environment that provides high-value partnerships for small business to thrive and succeed across Ghana.

Mr. Alex Apau Dadey is married with 3 beautiful kids, a proud product of Mfantsipim School, Cape Coast, and holds a BSc. (Admin) degree from the University of Ghana Business School, Legon.

Alex’s formative career began in the United Kingdom in 1986 where he progressively moved up the ranks from Export Sales Supervisor to Export Sales Director at the Gordon Richman Textiles Limited overseeing key accounts in ten countries spread across Europe, Middle East and Africa.

In 2001, Alex set up a joint venture – Qualitexx Limited, with DCD Finance Group PLC., based in the city of London. As Executive Director, he was instrumental in developing the company’s trade finance and venture capital businesses across the globe. This included providing financing for several local Ghanaian businesses through the DCD Finance Group. Since then, Alex has become renowned as a strong advocate for the inclusion of the Ghanaian diaspora in the political and socio-economic transformation of Ghana.

He functions in various c-suite capacities and serves on boards of multiple institutions including Ecom Agro Industrial, Premier Textiles Group in the United Kingdom, Birchfield Investments Limited in Jersey, Channel Islands and Dubai, KGL Capital (UK) Limited and Dominion Direct (UK) Limited to name a few.

He is credited with initiating the Ghana Diaspora Homecoming Summit in 2017 and the Ghana Investment and Opportunities Summit UK in 2018, both of which are now held biennially.

Among his many achievements, the ones that stand out are.

*Excellence in Organizational Leadership*, 2017, awarded by the Ghana Diaspora Homecoming Summit Committee for the successful Execution of the Ghana Diaspora Homecoming Summit.

*Diaspora African Forum Excellence Award*, 2017, awarded at the Ghana Diaspora Summit for his prominent role in ensuring a successful summit.

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Take Advantage Of Ghana’s Business-Friendly Climate  – President Akufo-Addo To Norwegian Business Community 

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Take Advantage Of Ghana’s Business-Friendly Climate  – President Akufo-Addo To Norwegian Business Community

The President of the Republic, Nana Addo Dankwa Akufo-Addo, has urged the business community from Norway to take advantage of the business-friendly climate currently existing in Ghana, and invest in the country.

According to President Akufo-Addo, “We will continue to create and maintain the conducive investment environment that not only guarantees the safety of investments, but good returns as well. We will continue to protect legitimate investments, and preserve the atmosphere of peace, stability and security that has been an important contributor to the increasing presence of Norwegian businesses in Ghana.”

Speaking at the Ghana-Norway Business Forum, held on Friday, 26th November 2021, at the Kempinski Hotel, the President stated his government has, over the last four (4) years, done a lot of work in correcting the fundamentals of the economy which were all pointing in the wrong direction when he took office in 2017.

“We have, over the period, put in place measures needed to reduce the cost of doing business, improve the business environment, and made the Ghanaian economy not only one of the most business-friendly economies in Africa, but also one of the fastest growing economies in the world between 2017 and 2020, averaging annual GDP growth rates of 7% for those years, up from the 3.4% GDP growth rate we inherited from the previous government in 2016,” he said.

With COVID-19 wreaking havoc on economies the world over, President Akufo-Addo reassured that Government is “working to grow the economy at a much faster rate this year, which will enhance the prospects of a win-win environment for both private sector and country; an environment where companies do not just survive, but actually thrive.”

The major programme driving the revival and revitalization of the Ghanaian economy, he said, is the one hundred-billion-cedi (GH¢100 billion) Ghana CARES ‘Obaatampa’ Programme, whose main elements include supporting commercial farming and attracting educated youth into commercial farming; building the country’s light manufacturing sector; developing engineering/machine tools and ICT/digital economy industries; amongst others.

“It continues to be an exciting time to be in Ghana, and to do business in the country. Already, global car manufacturing giants, Toyota and Nissan of Japan, Sinotruk of China, have established assembly plants in the country, as first steps towards the production of vehicles in Ghana,” he said.

President Akufo-Addo continued, “Twitter is establishing its African Headquarters in Ghana, and Google’s first African Artificial Intelligence Centre is located in Ghana. We are privileged to play host to the Secretariat of the African Continental Free Trade Area, which represents, currently, a market of some 1.2 billion people, spread over fifty-four (54) countries, with a combined GDP of $3 trillion. Trading in the emerging single market began on 1st January this year”.

With Ghana witnessing a significant rise in interest from Norwegian investors, in several sectors of the economy, including agriculture, building and construction, general trading, manufacturing, oil and gas, and tourism, President Akufo-Addo commended some of his government’s flagship policies to them.

“Government is also embarking on an aggressive public private partnership programme to attract investment in the development of both our road and railway infrastructure. We are hopeful that, with solid private sector participation, we can develop a modern railway network with strong production centre linkages and with the potential to connect us to our neighbours,” he said.

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KGL Group Fully Committed to Delivering Value in Excess of GHc100Milllion Per Annum to the National Economy and Government

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KGL Group Fully Committed to Delivering Value in Excess of GHc100Milllion Per Annum to the National Economy and Government

The successful operations of KGL Group and its subsidiary companies, KGL Technology Limited, KEED and KGL Foundation, are set to contribute significantly to the national economy and Government of Ghana at an expected cumulative value in excess of 100 million Ghana Cedis per annum.

KGL Group has contributed significantly to revenue growth and capacity development across its operations in the lottery industry, collaborations with the Ministry of Youth and Sports, Ghana Football Association and social intervention programs under its CSR wing, the KGL Foundation.

The Group is set to continue its value creation drive across its ecosystem of strategic partners and envisages a total value of 100million Ghana Cedis per annum to be committed.

The key levers to guide the allocation of funds by KGL Group in concert with strategic partners and to the national economy are as follows:

1. Growth in the contribution of Corporate Taxes and other taxes to the Ghana Revenue Authority (GRA) and the Government of Ghana.

2. Value within the lottery industry from:

a. Digital lotto marketer licensing and operational fees to the National Lottery Authority (NLA) in accordance with the ongoing review of license and operational terms and conditions for KGL Technology Limited.

b. Payments to the Stabilization Fund that seeks to provide support to revenue shortfalls of the Lotto Marketing Companies as a result of the digitalization policy of NLA-KGL Technology Limited.

c. Seed capital to set up a Pension Scheme for the Lotto Marketing Companies which is currently non-existent.

3. Undertaking of Corporate Social Responsibility activities in the areas of Education, Healthcare Delivery, Sports Development, Culture, and Tourism.

4. Growing investments in the media ecosystem and the entire value chain of marketing and advertising.

In the case of the lottery industry, this announcement is singularly one of the most profitable agreements the National Lottery Authority (NLA) has brokered considering zero investment made by the Authority towards infrastructure set up and operations of KGL Technology encompassing setting up the entire architecture to run digital lottery operations on the *959# Short Code and 5/90 mobile App under consumer brand name 590Mobile by KGL’s KEED subsidiary.

To put this in context, NLA would need to generate over GHc450 million volume of gross sales at Point-of-Sale Terminals per annum for the Authority to be able to accumulate a net profit of GHc50 million which will now be delivered at no cost by KGL Technology to the Authority pursuant to reviewed agreement.

This makes the current terms of the agreement between KGL Technology Limited and the National Lottery Authority (NLA) under review by the current Board definitely a game-changer for the revenue mobilization efforts of the National Lottery Authority (NLA), Lotto Marketing Companies, and the Government of Ghana as a whole.

KGL Technology Limited since its inception has contributed significantly to the fortunes of the National Lottery Authority (NLA) and the national economy.

In the area of sports development, the KGL Group has also partnered with the Ministry of Youth and Sports, the Ghana Football Association, and the Senior National Team, the Black Stars ahead of the AFCON and 2022 World Cup Campaigns. Besides this collaborative project, KGL Group recently also committed significant financial resources to the Ghana Football Association for the development of Juvenile Football for a strategic period of 5 years.

KGL Group through its KGL Foundation has equally supported several Charity Organizations, Cultural and social-economic activities across the Country.

KGL Technology Limited has at all material times honored its tax obligations to the Ghana Revenue Authority (GRA) and Government of Ghana and as a responsible corporate citizen, KGL Technology Limited reiterates its full commitment to the revenue mobilization efforts of the National Lottery Authority (NLA) and Government of Ghana, thereby contributing significantly to the Nation’s development agenda.

Issued by: Management of KGL Group

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