Business

Ghc1.5bn for agric highly insufficient – Agric-Impact CEO

Published

12 months ago

March 19, 2025

The Chief Executive Officer (CEO) of Agri-Impact Group, Daniel Acquaye, has stated that the budget allocation to agriculture is inadequate for driving national economic transformation.

He said with only GH¢1.5 billion (approximately $100 million) allocated to agriculture, out of the GH¢279 billion national budget, the sector received just 0.54 per cent of total government spending.

Speaking at the PwC post-budget digest in Accra yesterday, the CEO of the impact investor in the agriculture sector, said achieving rice self-sufficiency alone would require over $100 million in investment, effectively consuming the entire current agricultural budget.

Mr Acquaye said the underfunding contradicted the government’s stated goal of using agriculture as a foundation for economic transformation.

In 2014, African Union members signed up to commitments which have become known as the Malabo Declaration to accelerate agricultural growth and transform the sector for shared prosperity and improved livelihoods.

Under the Comprehensive African Agricultural Development Programme (CAADP), part of an Agenda 2063 continental initiative, the member countries agreed to allocate at least 10 per cent of national budgets to agriculture and rural development, and to achieve agricultural growth rates of at least six per cent per annum.

Underlying the investment commitments are targets for reducing poverty and malnutrition, increasing productivity and farm incomes, and improving the sustainability of agricultural production and use of natural resources.

Agric Fund

The Agri-Impact CEO also added his voice to calls to establish an Agricultural Fund, similar to the Ghana Education Trust Fund (GETFund).

Mr Acquaye argued that while the country successfully produced skilled labour through education, there was no corresponding investment in sectors such as agriculture that could employ those graduates.

He said properly funding agriculture would reduce youth unemployment, improve food security, and drive rural economic development, ultimately strengthening Ghana’s entire economy.

Mr Acquaye observed that while the mining and oil sectors were good as they boosted the country’s Gross Domestic Product (GDP), they did not provide transformational growth.

“We need mining, we need the oil sector. It makes our GDP growth look good. But if you generate $1 billion from mining or you generate one billion dollars from oil, it is not the same as generating $1 billion from agriculture,” Mr Acquaye, whose company is leading a number of youth-focused impact projects in the agricultural sector, stated.

This is because to generate $1 billion from agriculture, the multiplier impact will be higher,” Mr Acquaye said.

On how the Agriculture Fund should be funded, he said “we have developed means of funding education. There is a formula that puts money into GETFund. We can use similar formula to put money into agriculture.”

Big Push

The Senior Country Partner of PwC Ghana, Vish Ashiagbor, contributing to the discussion, said a look at the nominal amount dedicated to agriculture might look insufficient, but there were critical infrastructural development projects under the GH¢10 billion “Big Push” project and other projects that would benefit the sector.

“If you look at it then absolutely it is quite small, which looks strange, given that we’re trying to push agriculture as one of the pillars of growth for our economy.

“However, the other factors around infrastructure, around the drive towards creating agri-zones, all of those will enable agriculture.

So, government does not need to necessarily invest directly in agriculture itself, but to the extent that they create the environment that allows private sector to thrive in agri-zones,” he explained.

Good budget

Mr Ashiagbor described the 2025 budget as a good start and a nice statement of intent.

He expressed the confidence that a successful implementation of the proposed measures could create a more favourable environment for private sector growth, something he noted, had been recognised as the engine of growth, but had remained elusive due to persistent economic challenges.

Mr Ashiagbor highlighted implementation as the critical factor that would determine whether the budget’s business-friendly intentions translated into tangible economic benefits.

Growth, sustainability levy

Commenting on the increase in the Growth and Sustainability Levy to three per cent, the Senior Country Partner said mining companies typically made investment decisions based on long-term planning.

Mr Ashiagbor said making sudden tax increases and extended levy periods particularly disrupted their operations and anticipated returns.

He, however, acknowledged the government’s challenging fiscal position, noting the pressing need to balance revenue collection with expenditure demands.

That difficult balancing act, he stated, required ongoing dialogue between the government and industry to foster mutual understanding and potentially identify win-win solutions that satisfied both revenue requirements and business stability needs.

The PwC Senior Country Partner referenced the minister’s characterisation of recent mining sector profits as “a windfall” due to the record high commodity prices, though he acknowledged that the minister stopped short of using the term “windfall tax.”

That framing, Mr Ashiagbor said, had made the sector a target for increased taxation during profitable periods.

Source: Graphic Online

Business

Ghana Stock Exchange Composite Index Surpasses 14,000 Points for First Time

Published

5 days ago

March 4, 2026

Sunshynbaby

The Ghana Stock Exchange recorded a landmark performance on Wednesday, as its benchmark Composite Index crossed the 14,000 mark for the first time in history.

At the close of the 7,166th trading session on March 4, 2026, the GSE Composite Index rose by 270.78 points to settle at 14,005.32. The Financial Stocks Index also advanced strongly, gaining 309.94 points to close at 8,805.87.

Market capitalisation climbed to GH¢256.75 billion, up from GH¢251.02 billion recorded the previous day, reflecting sustained investor participation across the market.

A total of 3,583,308 shares were traded during the session, with a combined value of GH¢39.82 million. Although trading volume was lower compared to earlier sessions in the week, the total value represented the highest single day turnover recorded so far this week.

Banking Stocks Lead Market Gains

Banking equities accounted for much of the day’s momentum.

GCB Bank PLC posted one of the strongest gains, rising by GH¢4.52 to close at GH¢49.80. The bank recorded 441,752 shares traded, contributing nearly GH¢22 million to the total value of shares exchanged.

Standard Chartered Bank Ghana PLC added GH¢4.72 to close at GH¢51.96, while Ecobank Ghana PLC closed unchanged at GH¢57.00, with 24,534 shares traded.

Other financial stocks also recorded gains. Enterprise Group PLC rose by GH¢0.80 to GH¢9.00, while Ecobank Transnational Inc. gained GH¢0.13 to close at GH¢1.55.

However, Societe Generale Ghana PLC declined by GH¢0.11 to close at GH¢11.40, making it the only actively traded stock to record a loss during the session.

Telecommunications and Energy Counters Advance

Scancom PLC, operators of MTN Ghana, remained the most actively traded stock. The counter rose by GH¢0.02 to close at GH¢5.80, with 1,968,543 shares exchanged, valued at over GH¢11.4 million. The stock’s closing bid and offer prices indicated sustained demand ahead of its upcoming dividend payment.

In the energy and insurance sectors, Ghana Oil Company Limited advanced by GH¢0.52 to GH¢5.77, while SIC Insurance Company PLC gained GH¢0.29 to close at GH¢4.90.

Republic Bank Ghana PLC increased by GH¢0.11 to GH¢2.73, and Atlantic Lithium Ltd rose by GH¢0.12 to GH¢6.52. Benso Palm Plantation PLC edged up marginally by GH¢0.01 to close at GH¢74.01.

Broader Market Performance

Several listed equities recorded no price changes during the session, including AngloGold Ashanti PLC, Guinness Ghana Breweries PLC, TotalEnergies Marketing Ghana PLC, and Unilever Ghana PLC, among others.

Since the beginning of the year, the Composite Index has recorded a cumulative gain of 59.69 percent, while the Financial Stocks Index has returned 89.49 percent. Wednesday’s performance marked the eighth consecutive trading session of gains for the benchmark index, as market observers monitor the 14,500 point level as the next key threshold.

Business

Ghana Banks Write Off GH¢1.64bn in 2025 as Bad Debt Drops 57%, NPL Ratio Improves

Published

6 days ago

March 3, 2026

Sunshynbaby

Banks in Ghana wrote off GH¢1.64 billion in bad debts in 2025, representing a sharp 57.1 percent decline compared to the previous year, according to data released by the Bank of Ghana.

Figures from the central bank’s Domestic Money Banks Income Statement show that in 2024, banks made provisions amounting to GH¢3.82 billion for bad loans, depreciation and other related losses. The significant drop in write-offs in 2025 signals a relative easing in credit losses across the industry.

Despite this improvement, asset quality risks within the banking sector remain elevated. The January 2026 Banking Developments Report indicates that the industry’s Non-Performing Loans ratio declined to 18.9 percent in December 2025, down from 21.8 percent recorded in December 2024.

When adjusted to exclude fully provisioned loan loss categories, the NPL ratio fell more sharply from 8.5 percent to 5.0 percent over the same period, reflecting stronger recovery and provisioning efforts by banks.

However, the total stock of non-performing loans increased marginally by 0.8 percent to GH¢21.0 billion in December 2025. This contrasts with the much higher growth rate of 31.4 percent recorded in December 2024, suggesting that while bad loans are still rising in absolute terms, the pace of growth has slowed considerably.

A breakdown of the NPL figures shows that the private sector continues to account for the overwhelming share of distressed loans. Its proportion of total non-performing loans rose to 97.5 percent in December 2025, up from 96.2 percent a year earlier. In contrast, the public sector’s share declined to 2.5 percent from 3.8 percent over the same period.

The central bank noted that the overall decline in the NPL ratio reflects broad-based improvements in asset quality across most sectors of the economy. However, two sectors recorded worsening loan performance. The construction sector saw its NPL ratio rise from 29.8 percent to 30.7 percent, while the agriculture, forestry and fishing sector experienced a more significant increase from 38.0 percent to 46.3 percent.

All other sectors reported improvements in asset quality during the review period, pointing to gradual stabilization in credit conditions within the banking industry.

Business

Ghana Drops in Global Mining Investment Attractiveness Ranking Amid Policy Concerns

Published

7 days ago

March 2, 2026

Sunshynbaby

Ghana has recorded a decline in its global mining investment standing, slipping seven places in the latest Global Mining Investment Attractiveness Index released by the Fraser Institute.

The country fell from 46th position out of 82 jurisdictions in 2024 to 53rd out of 68 jurisdictions assessed in 2025. Although Ghana’s overall score saw only a marginal decrease, the drop in ranking reflects stronger performance by competing mining destinations worldwide.

Slight Score Decline, Sharper Ranking Impact

In 2024, Ghana achieved a score of 56.98 percent. This declined modestly to 55.21 percent in 2025. Analysts note that the sharper fall in ranking was largely driven by improvements recorded by other countries rather than a significant deterioration in Ghana’s performance.

The Fraser Institute’s Annual Mining Survey evaluates jurisdictions based on mineral potential and policy-related factors that influence exploration investment decisions, including taxation frameworks, regulatory stability, and government policy predictability.

Within Africa, Ghana ranked eighth out of 16 countries surveyed, placing slightly ahead of South Africa, with an overall continental score of approximately 55 percent.

Survey Methodology and Industry Participation

The 2025 survey was conducted electronically between August 5 and November 26, targeting about 2,304 mining industry professionals globally. Senior executives formed a significant portion of respondents, with more than 46 percent serving as company presidents or vice-presidents, while over 25 percent were managers or senior managers.

Participating firms collectively reported exploration expenditures totaling about US$4.2 billion in 2025.

Jurisdictions are ranked according to how public policies either encourage or discourage mining investment. The Investment Attractiveness Index combines two key measures: the Best Practices Mineral Potential Index, which assesses geological prospects, and the Policy Perception Index, which evaluates investor confidence in government policies.

The number of jurisdictions assessed annually varies depending on commodity price trends and activity levels within the global mining sector. Previous surveys evaluated 82 jurisdictions in 2023, 86 in 2022, and 84 in 2021.

Policy Debate Shapes Investor Sentiment

The report comes at a time when sections of Ghana’s mining industry have raised concerns about proposed government reforms, including potential tax and regulatory reviews affecting the sector.

Some mining companies have indicated that changes to existing policies could influence profitability and employment levels if implemented.

Government officials, however, argue that the reforms are intended to ensure the country derives greater value from its mineral resources while maintaining a balance between attracting investment and safeguarding national economic interests.