🚩The central bank’s Monetary Policy Committee (MPC) has lowered the policy rate by 100 basis points at 13.5 percent from 14.5 percent. Announcing the decision at its 100th MPC press conference, Governor of the Bank of Dr. Ernest Addison on May 31 said this was based on risks to the country’s inflation outlook remaining muted in the near term. He added that consumer inflation is expected to remain within the central bank’s target band of 8% plus or minus two percentage points in the next quarter after falling to 8.5% in April 2021 due to lower food price inflation.
🚩Ghana’s trade balance narrowed in the first four months of this year to 1.0% of Gross Domestic Product, as imports continued to surge, data from Bank of Ghana has revealed. However, the country continued to enjoy trade surplus since first achieving that in 2018. The trade balance that is the difference between exports and imports stood at $759 million in April 2021. Compared to same period last year, the trade balance was $1.0 billion, that is equivalent to 1.3% of GDP. Total exports was estimated at $5.13 billion in the first four months of this year, whilst total imports including oil stood at $4.37 billion.
🚩ExxonMobil, a US-based oil and gas firm has exited Ghana’s oil fields and subsequently relinquished 100 percent of its oil exploration rights in Deepwater Cape Three Point Block in the Western Region. A letter issued to Ghana’s Ministry of Energy, Dr. Matthew Opoku Prempeh and copied to the Petroleum Commission and Ghana National Petroleum Corporation, (GNPC) explained, the company was unwilling to enter an extension of the contract originally signed in 2018. 0“EMEPGL hereby notifies the Republic that it has determined not to enter into the First Extension Period, and hereby voluntarily surrenders and relinquishes one hundred percent (100%) of its rights in and to the DWCTP Contract Area,” portions of the letter read.
🚩Oasis Capital, a fund manager of Oasis Africa VC Fund (OAF) has invested an amount of US$1 million in appsNmobile Solutions, a financial technology company in Ghana. The investment is to enable appsNmobile to position itself as a dominant player in the payments space in Ghana and the sub-region. A statement from appsNmobile explained that part of the capital will also enable it to meet the Bank of Ghana’s regulatory capital requirement as well as provide other needed logistics for the business.
🚩The Institute for Energy Security (IES) has charged government to take immediate steps to actualize its directive to Eni Ghana Exploration and Production Limited and Springfield Exploration and Production Limited to unitize the Afina discovery and the Sankofa field. According to the Institute, urgent action is required from government given that time is of essence in maximizing the exploitation of the country’s hydrocarbon resources for the benefits of the citizenry
Prince Henry Danquah
Bora Capital Advisors Ltd.