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The Social Security and National Insurance Trust (SSNIT) has announced a 12 percent increase in pensions for the year 2025, bringing much-needed relief to pensioners nationwide. 

The increment, which takes effect immediately, was announced in a press release issued on Monday, January 6, 2025, following consultations with the National Pensions Regulatory Authority (NPRA).

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How the increase will be applied
  
According to SSNIT, the increase comprises a fixed rate of 8 percent and a flat amount of GH¢72.58, redistributed to benefit low-earning pensioners. This approach ensures an effective increment ranging from **32.19%** for low-income pensioners to 8.04 percent for the highest earners.  

The redistribution mechanism aligns with the solidarity principle of social security, cushioning those at the lower end of the pension scale.  

Pension earnings breakdown
  
1. Minimum Pension:  
   – Increased from GH¢300.00 in 2024 to GH¢396.58 in 2025.  
   – Represents an effective increase of 32.19 percent.  

2. Highest-earning pensioners:  
   – Under PNDC Law 247: GH¢201,792.37 per month.  
   – Under Act 766: GH¢28,703.01 per month.  

3. Average Monthly Pension:  
   – Will increase from GH¢1,776.81 in 2024 to GH¢1,990.03 in 2025. 

SSNIT’s commitment to pensioners  

SSNIT explained that the annual indexation process is designed to maintain the purchasing power of pensioners, ensuring their earnings align with economic realities.  

“The Trust shall annually review the pension payment, which shall be indexed to wage inflation rates of active contributors or another rate determined by the Trust in consultation with the Board of the Authority,” the statement noted.  

Why Indexation Matters

Indexation considers various factors, including:
  
– Average salary of active contributors.  
– Annual Consumer Price Index (CPI).  
– Affordability and the long-term sustainability of the Scheme.  

Impact of the 2025 Indexation
  
Approximately 63 percent of pensioners, receiving GH¢1,814.50 or less, will benefit from an effective increase between 12 percent and 32.19 percent, significantly helping them maintain their standard of living.  

Implementation

The 12 percent pension increase takes effect this month, with payments scheduled for the third Thursday of every month.  

This announcement brings hope and financial relief to Ghanaian pensioners as they adjust to the rising cost of living while benefitting from SSNIT’s commitment to securing retirement income.

Current discoveries of new minerals across Ghana present enormous opportunities for youth development in the country, Chief Executive Officer of the Minerals Income Investment Fund (MIIF), Edward Nana Yaw Koranteng, has said.

He consequently, underscored the need to build a strong human capital base to drive growth in the mining sector.

“We are looking at new mines coming on board, new minerals such as lithium, baryte, more manganese, salt, graphite, sodium and gold. So there is the need for us to have the human capital base to support the growth of the sector,” he said.

Mr Koranteng who was speaking at a media briefing on the MIIF Women from Mining Communities (WoMCoM) Scholarship Scheme in Accra, announced that 41 female students from some mining communities across the country have been selected as first batch of beneficiaries of the scholarship scheme this year.

The beneficiaries who are all female students from the University of Mines and Technology (UMaT) include 39 undergraduate students and two postgraduate students.

The initiative in partnership with UMaT and designed to support 1,000 women from mining communities over the next 10 years aims to boost female participation in the predominantly male-dominated mining industry.
 

Transition

The CEO said there are “conveyor belt of opportunities” awaiting scholarship beneficiaries as they transition from academia to their careers.

He explained that MIIF’s focus extends beyond the Ghanaian mining sector to the broader subregion.

“We are currently exporting talent, which is why we believe Ghana has the potential to become the continent’s hub for mining excellence.

We are developing the sector from a 360-degree perspective by focusing on every element that drives the industry—streamlining value delivery processes, enhancing human capital, supporting contractors across the value chain, and shaping government policies around local content,” Mr Koranteng said.

He expressed confidence in the sector’s positive outlook, saying “with the work we are doing and the support these scholarships provide, the future of Ghana’s mining industry looks increasingly promising.”

 
Equipped workforce

The Vice Chancellor of UMaT, Professor Richard Kwasi Amankwah, expressed gratitude for the support received from MIIF in building a technical training center on UMaT’s campus and the financial support for its needy students.

Encouraging students to take full advantage of the opportunities available to them, he emphasised the importance of identifying problems and creating solutions to contribute to Ghana’s development.

He said Ghana was blessed with an abundance of minerals, including gold, manganese, bauxite, salt, graphite, and clay, however, the country has traditionally relied on exporting raw minerals with minimal processing.

This approach, he said, has limited the potential economic benefits that could be derived from its mineral wealth.

He said there was the need for more robust efforts in training and equipping the workforce with the necessary skills to add value to these minerals locally.

For instance, he pointed to the value addition potential of industrial salt adding that while exporting raw salt yields a certain income, producing caustic soda from it would generate five times more revenue.

Prof. Amankwah said there were some ongoing collaborations with international companies and other institutions expected to bring high-tech solutions to Ghana’s mining sector, ensuring that the country can leverage its mineral resources more effectively.

To support these efforts, he said UMaT has introduced courses and training programmes aimed at developing skilled professionals to help Ghana position itself for long-term economic growth and job creation, making its mineral resources a key driver of sustainable development.

This article was originally published on: Graphic Business

• Africa is brimming with opportunities for international businesses that are ready to adapt and to innovate.
  
• But simply transplanting a model from another region won’t help companies doing business in Africa’s highly varied and complex economic environment.
  
• As the continent’s population becomes the heart of the global workforce, companies that don’t adapt to fit Africa’s markets risk missing out on significant opportunities.

For the last decade, Africa has tempted businesses with the promise of immense opportunity. The continent’s rapidly growing youthful population, vibrant cultural scenes and wealth of natural resources have drawn significant interest from businesses from around the world. So, with all signs pointing to growth for those entering this market, why are many big corporations now leaving the continent?

Unilever closed its manufacturing operations in Nigeria in March 2023 in an attempt to maintain profitability. Nestlé also halted production of one of its brands, Nesquik, in South Africa last year due to falling demand. Diageo is selling its majority stake in Guinness Nigeria – once heralded as a success story in that market – due to worsening economic conditions and a weakening currency.

The recent exit of these companies, and others, from African markets repeats a familiar pattern; foreign companies doing business in Africa often struggle to navigate local conditions and idiosyncrasies – from corporate oversight to foreign policy and domestic infrastructure. Aside from creating domestic job losses, such departures can affect investor confidence. This leads to more tentative local and foreign investment, which in turn can perpetuate a cycle of economic stagnation and foreign dependency.

With the continent projected to be home to a quarter of the world’s population by 2050, multinationals must rethink current business approaches and operations in Africa to help the region’s economic growth match its potential.

Western model misfit

Policy, infrastructure, or lack of demand are commonly cited as the reasons for corporations leaving Africa, but this also suggests a failure to account for local market conditions.

Africa’s nations vary significantly, with differing customs, languages, currencies and market philosophies. Even regions within countries can be polar opposites – both Ghana and Nigeria have north-south divides, with disparities across religion, ethnicity, political and economic lines. The continent’s markets are not formalised or regulated in the same way Western markets are, and they are dominated by SMEs. Its workforce is largely informal and skewed heavily to early-stage talent.

And so, blindly importing successful strategies from other regions is unlikely to be effective in Africa. Western models of talent identification, development and compensation are unlikely to suit an environment where 83% of Africans work in the informal sector, for example. Indeed, many business leaders cite navigating talent complexities as the biggest challenge (but also opportunity) in African markets.

Further, the large informal economies and stratified markets of Africa cater to a region where 429 million people live on less than $2.15 a day. This is a very different business and investment environment from high-spending consumer regions like Europe. Even so, global investors continue to direct funds into startups targeting high-income customer profiles.

Such strategies overlook sectors that are more ripe for innovation such as healthcare and education – fundamental pillars of societal development with wide-ranging applications across the region. By prioritising short-term gains over long-term investment in these foundational areas, investors and businesses risk stifling sustainable growth and transformative impact across Africa.

Charting a different course for growth

These challenges shouldn’t deter companies from doing business in Africa; rather, they should compel a strategic rethink.

Western business models typically emphasise large-scale manufacturing and centralised operations. Asian models tend to focus on export-driven growth. But Africa’s limited formal transport networks, cash-dependent economies and language variations point to the potential for innovation around localisation and fragmentation at scale.

Also, simply assessing end-consumer numbers and potential demand isn’t enough. Businesses must ensure viability across an entire industry’s value chain. They must see themselves as market-makers that enable and empower suppliers to supply and consumers to consume, so everyone can benefit from a growing economy. Specifically, the likes of Unilever, Diageo and GSK should consider rotating their Africa playbooks to become strategic investment firms and enablers of consolidation of fragmented locally optimised ventures at scale – think Avon versus L’Oreal.

Western multinationals are already being replaced in Nigeria by Asian companies that have succeeded by localising costs and adapting to the country’s unique challenges. Similarly, Movemeback has worked with Uber to help it expand across Africa since 2015. In Africa’s cash-reliant economies, Uber had to pivot, accepting cash payments and partnering with local vehicle providers to bridge the affordability gap for taxi drivers.

Finding the right people for doing business in Africa

Talent is central to success, particularly for corporations that are doing business in Africa. Western companies shouldn’t employ disconnected expatriate leaders who manage from afar and are incentivised to adopt centralised and aggregate means of management across sub-regions. The absence of robust middle management exacerbates this challenge. Companies must employ integrated learning and development solutions and embrace local talent who are aware of market nuances.

Policy-makers also have a duty to support these Africa-focussed business models – both for the greater good of people and to influence multinationals to accept medium-term pain in order to reap long-term benefits for shareholders as the market matures.

Rwanda’s private sector partnership-friendly approach under its Rwanda Vision 2020 plan has set clear expectations for private firms in exchange for creating enabling environments for experimentation and pursuing regional scale. Investment in ICT infrastructure has transformed it into a regional tech hub, attracting significant foreign investment by aligning infrastructure with local needs.

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Africa has long since shed the false narrative that it needs “saving” – it is a region with ample opportunities where businesses can yield profit and contribute to growth. But there is still untapped potential.

The recent retreat of some major companies from Africa should serve as a wake-up call for multinationals – a reminder to meet Africa where it stands today. Those that wish to succeed will abandon the notion of simply transplanting Western models, thinking local instead: local talent and leadership, local governments, local investment and local value chains. To loosely reference Darwinian evolutionary theory, the directive is clear for companies wishing to prosper in Africa: adapt or fail.

This article is originally published from: WEF

I’ve said for years that African energy is a vital investment. Backers clearly agree — to the tune of USD47 billion. That’s how much capital expenditure (capex) 2024 saw in African oil and gas, showing a 23% increase from last year. Better yet, we expect growth to continue through the end of the decade.

This capex activity is a welcome sign that energy majors are deepening their long-term interests in Africa. And as our 2025 State of African Energy report details, their momentum has created unique opportunities for local communities, indigenous companies, and national oil companies (NOCs) from other continents.

Emerging Players

While the majority of 2024’s capex was driven by established producers like Angola and Nigeria, emerging players are making noise in the industry. Take Senegal, which saw its first offshore oil production this year. Ghana, following a five-year slump, increased oil output during 2024 by 10% and gas output by 7%.

Exploration hotspot Namibia also deserves a special mention: The Southern African nation aims todrill over 12 offshore wells next year, begin production by 2029, and become one of the top-five African producers by the 2030s. Good work for a nation that only discovered its enormous reserves in 2022! I frequently cite Namibia because it proves that a complete newcomer can attract serious foreign investment with smart, swift policy changes — and poise itself to shake up the energy industry.

Increased Exploration

An exciting question remains: Just where will we find the next Namibia? Thanks to a resurgence in exploration, another hotspot may be around the corner. There were 1,060 wells drilled in Africa this year — more than any time since 2015. Africa has also become a global leader in drilling high-impact wells, which have the potential to significantly increase overall reserves. That strategy is already paying off: Notable 2024 finds include Namibia’s Mopane complex, which holds approximately 10 billion barrel of oil equivalent (boe) – “one of the world’s largest offshore finds,” according to Offshore Magazine. Even while global exploration as a whole remains stagnant, Africa is stepping up to meet growing energy demands.

When exploration is successful, new fields follow. We also expect to see African greenfield spending exceed brownfield by 10% by 2030. These capex trends all demonstrate that investors won’t limit themselves to mature fields: Eyes are on fresh locations, fresh facilities, and fresh opportunities in Africa.

A Gas Future

As we highlight in our 2025 report, one of those opportunities is natural gas. Africa holds nearly 18 trillion cubic meters of reserves, which will prove essential for a just energy transition as natural gas can provide significant near-term emissions reductions while fostering energy security and economic development. Global demand for this clean-burning resource is also growing, particularly in Asia. That’s why I’m glad to see a greater emphasis on developing natural gas resources. In 2023, capex spending on natural gas was about 30%, but this is projected to grow 10% by 2030. It’s another sign that more investors are thinking in the long term about Africa, and interested in being part of a just energy transition.

Take Senegal, where the Greater Tortue Ahmeyim gas field will begin production next year. A Final Investment Decision is also expected in 2024 on Yakaar-Teranga. The West African nation is another fantastic example of how operator-friendly policies, political stability, and vast reserves can attract significant foreign investment: I’m excited to see Senegal transform itself from an oil importer to a gas exporter.

M&A Opportunity

The past year saw a huge increase in divestment by O&G majors: Large IOCs are aggressively streamlining their African portfolios. As a rule, they’re selling mature, high-emission, and high-cost assets. While large divestments often signal trouble, they’re actually creating some promising changes for African O&G.

For one, Asian and Middle Eastern nations are purchasing more assets: Dubai, Qatar, the U.A.E., Malaysia, and Chinese NOCs acquired stakes in Egypt, Mozambique, Namibia, Kenya, and South Africa this year. As global demand for energy grows, particularly in Asia, I’m glad to see these nations looking to Africa for long-term solutions.

Foreign divestment also matters because it’s creating opportunities for indigenous companies. Thanks to a recent Shell acquisition, Aradel Holdings became Nigeria’s most valuable oil company. In Angola, IOC Afentra has acquired Azule (a joint BP and Eni venture) assets and plans to dramatically increase the nation’s overall output.

“Having the big players sell to independents is the future,” oil trader Trafigura said in a statement.

It’s a promising pattern: Majors sell off mature assets and use the capital to invest in fresh fields and facilities. Independent foreign or indigenous companies use their acquired assets to expand but are spared the expense of building facilities from the ground up. These smaller companies are also strongly motivated to further develop and reduce emissions from these existing fields — an environmental and financial win for everyone.

The Angolan government clearly agrees, encouraging regional players with tax incentives and reduced government profit shares. It will be truly fascinating to watch this industry shakeup in Nigeria and Angola, which have been dominated for decades by majors.

It’s no secret that Africa needs O&G majors to stay: They drill over half of our exploration wells and hold a quarter of the continent’s equity production. However, I’m thrilled to see indigenous companies growing and harnessing these assets to their fullest extent.

Conclusion

Just what prompted this surge in African capex? A great deal of credit goes to common sense policy changes in nations such as Namibia, Senegal, Mauritania, Egypt, and Angola. We can also point out that the COVID-19 pandemic artificially slowed capex for several years, so an uptick was inevitable once the world opened up again. 

However, I believe a lot of it comes down to economic reality: Global energy needs are rising. Africa has vast, untapped resources. I urge all parties to continue building a thriving energy industry that takes Africa – and the world – into the next century.

For further insights, check out our 2025 State of African Energy report here.

Source: Africa Energy Chamber

As the world looks to 2025, Africa and the Middle East are stepping into the spotlight as premier travel destinations.

With a mix of affordable luxury, diverse cultural experiences and breathtaking landscapes, this dynamic region is preparing to welcome a surge of international travellers.

Tony Romer-Lee, Co-founder and Managing Partner of Valor Hospitality AMEA, offers an insider’s perspective on how the hospitality industry in Africa is evolving to meet this growing demand.

From innovative accommodations to forward-thinking visa policies, here’s how Africa is positioning itself as a travel powerhouse and what it means for visitors in the coming years.

Africa’s unbeatable value for travellers

One of Africa’s biggest incentives is that its value for money, particularly when it comes to hospitality. According to Romer-Lee, Africa is outshining other global destinations on the Average Daily Rate (ADR) scale.

In simpler terms, travellers can enjoy luxury accommodations and experiences in Africa for a fraction of the price they’d pay in Europe or North America.

This affordability is especially appealing as over-tourism continues to plague popular European destinations like Venice, Amsterdam and Barcelona.

With their charm diminished by overcrowded streets and sky-rocketing prices, more Europeans are setting their sights on Africa’s lesser-travelled gems.

Destinations like Cape Town, Zanzibar and Mauritius are leading the charge. These locations are not only beautiful but also cater to a wide range of travellers, including families seeking multi-generational holiday experiences.

From pristine beaches to adventure-packed safaris, there’s something for everyone.

“Loyalty programmes and points redemption plans will further fuel demand for these destinations,” says Romer-Lee.

Travellers are increasingly looking to stretch their hotel rewards and airline miles in high-end, yet affordable, African hotspots — a trend that’s only expected to grow in 2025.

Branded residence

Another game-changer for Africa’s hospitality industry is the rise of branded residences.

These are properties that combine the comforts of home with the perks of luxury hotel services — perfect for travellers seeking longer stays or a “home away from home” experience.

This trend is particularly attractive to digital nomads, as remote work continues to shape the way people travel.

“Developers are subdividing properties, selling individual apartments to investors who can have the units managed by hospitality companies,” Romer-Lee explains.

Not only does this make financing easier for developers but it also gives travellers more flexibility.

Cape Town and Nairobi are already seeing a boom in branded residences, offering remote workers and long-term travellers fully serviced, comfortable accommodations.

Visa innovation

Visa policies are proving to be a critical factor in boosting Africa’s tourism appeal. Some countries, like South Africa and Tanzania, are leading the way with travel-friendly policies.

South Africa’s digital nomad visa, for example, allows remote workers to live and work in the country without taking jobs from locals. This simple yet effective policy is drawing foreign dollars into the local economy.

Similarly, Tanzania, including Zanzibar, has embraced a more open approach to visas, making it easier for travellers to visit and contribute to its flourishing tourism industry.

“The results of this tourism-friendly approach are evident in the numbers,” says Romer-Lee.

However, not all nations are following suit. Namibia recently announced it would revoke visa exemptions for 31 countries in 2025, citing a lack of reciprocity for its own nationals.

This decision highlights the delicate balance between encouraging inbound tourism and managing immigration concerns.

To thrive in the global travel market, Romer-Lee highlights the need for African countries to adopt visa policies that prioritize accessibility while avoiding the pitfalls of over-tourism—a challenge Europe is already struggling to manage.

As demand for travel increases, so does the need for a skilled and passionate hospitality workforce — a challenge Africa is tackling head-on.

Destinations like Mauritius are facing staffing shortages as skilled workers leave for higher-paying jobs abroad. To combat this, major hospitality brands are doubling down on training and development.

Romer-Lee flags the Drostdy Hotel in Graaff Reinet, South Africa, as a prime example. Owned by the South African College of Tourism, this hotel serves as a training ground for students, equipping them with hands-on experience and a comprehensive education in hospitality.

“By investing in their workforce and fostering a pipeline of skilled professionals, Africa’s hospitality industry is positioning itself for long-term success,” Romer-Lee explains.

This commitment to human capital ensures that travellers receive world-class service while also creating sustainable employment opportunities for locals.

For those seeking adventure, relaxation, and cultural immersion in 2025, Africa offers it all — minus the crowds and inflated prices of other hotspots.

As Romer-Lee aptly put it, the success of Africa’s hospitality sector lies in striking a balance between accessibility, responsible growth, and investment in people.

Whether you’re dreaming of a family getaway to Mauritius, a remote work stint in Cape Town or a cultural escape in Zanzibar, there’s never been a better time to explore Africa’s endless possibilities.

Source: IOL

Ivory Coast is emerging as a powerhouse in West Africa’s oil and gas industry, driven by a solid regulatory framework, attractive fiscal terms and innovative partnerships. Home to significant hydrocarbon reserves and progressive policies, the country has drawn investments from leading energy companies, cementing its status as a regional hub for energy production and exploration. The African Energy Chamber (AEC) (www.EnergyChamber.org) applauds Ivory Coast’s efforts in creating an environment where oil companies can thrive.  

This week, the AEC is participating at the SIREXE 2024 conference in Abidjan. Led by Executive Chairman NJ Ayuk, the chamber engaged with global service companies such as Halliburton, Africa Global Logistics, Sahara Group and SLB, encouraging them to prioritize expansion and innovation. The AEC is committed to supporting Ivory Coast’s initiatives to reduce energy poverty, promote local content, and foster economic development.

As the country continues to expand its role in the regional oil and gas sector, the AEC emphasizes the importance of ensuring that the energy transition includes oil. It is essential that industry stakeholders advocate for a just transition that recognizes the ongoing importance of oil in Africa’s energy future while transitioning to more sustainable energy sources. 

Ivory Coast’s strong policies have laid the foundation for oil companies to drive large-scale projects. Notably, the Baleine field, spearheaded by Eni and the nation’s national oil company Petroci, is a prime example of what is possible when innovation meets efficient governance. The field currently produces over 22,000 barrels per day (bpd) and is set to scale significantly.

As Africa’s first net-zero (Scope 1 and 2) hydrocarbon project, the project is advancing with the arrival of critical infrastructure – the Petrojarl Kong FPSO and Yamoussoukro FSO – set to boost production to 60,000 bpd and add 70 million cubic feet of gas by the end of 2024. The project features the continent’s first-ever net-zero FPSO. This sustainable approach is what the continent needs. Companies such as Eni are using low-carbon solutions to not only operate but prioritize decarbonization. This is what sets them apart. Petroci’s partnership in this project underscores its pivotal role in driving Ivory Coast’s energy ambitions. 

In addition to the Baleine field, Eni made a significant discovery in March 2024 in Block C1-205 – known as the Calao find – which is estimated to hold up to 1.5 billion barrels of oil. This discovery is expected to generate substantial revenues and create over 8,000 jobs. Ivory Coast plans to begin exploiting the Calao field by 2026, strengthening the country’s energy security and economic growth.  

Amid project advancements, Ivory Coast is also strengthening its local content policies. The government has recently approved in principle the National Upstream Local Content Policy, which seeks to reduce dependency on foreign expertise by building domestic capacity. The policy is currently undergoing consultations across all regions, reflecting the country’s commitment to fostering economic sovereignty and strengthening its energy sector. As the voice of the African energy sector, the AEC commends the efforts by the government to advance local content policy, emphasizing the need for oil operators to increase local hiring, training and contracting.  

The country is also strengthening its position through international partnerships. In August 2024, Ivory Coast’s Ministry of Mines, Petroleum and Energy signed production sharing agreements (PSAs) with Eni for four offshore blocks, promising an $80 million investment in exploration over three years. Similarly, onshore exploration has seen a boost with PSAs signed between the Ministry and Elephant Oil for three blocks, further diversifying Ivory Coast’s energy portfolio and unlocking onshore hydrocarbon potential. 

Exploration campaigns have revealed substantial deposits across the country and key international partnerships continue to advance Ivory Coast’s oil and gas sector. In March 2024, Vaalco Energy acquired a 27.39% stake in the Baobab field through its purchase of Svenska Petroleum Exploration, valued at $66.5 million. The Baobab field, located offshore Ivory Coast, is expected to add substantial capacity to Vaalco’s operations.

Similarly, in November 2023, Ice Oil&Gas signed a PSA with Petroci for offshore block CI-705, furthering exploration in the Grand Lahou area with a commitment to invest $40 million in the next seven years. Further strengthening its energy footprint, Murphy Oil signed production-sharing contracts for five blocks in Ivory Coast in June 2023, spanning both shallow and deepwater areas. The company’s activities include developing the Paon deep-water gas and light oil field in block CI-103 and evaluating potential from previous drilling in blocks CI-531 and CI-709. 

Ivory Coast’s efforts to position itself as a regional oil and gas hub extend beyond production. The Ministry has identified 26 blocks available for leasing and is accelerating certification of reserves in existing blocks. Downstream opportunities also abound, with Petroci spearheading projects in refining and petrochemicals. Notably, Société Ivoirienne de Raffinage (SIR), Ivory Coast’s national refining company, is playing a central role in meeting the country’s growing energy demands, underlining the importance of downstream development in supporting long-term energy stability and economic growth. 

“Ivory Coast is not just a key player in West Africa’s energy sector; it is a model for what the future of African oil and gas development should look like. With its progressive policies, commitment to local content and willingness to embrace innovation, Ivory Coast is positioning itself as a beacon of sustainable and inclusive growth,” said Ayuk. “It is crucial to continue building on these partnerships, invest in infrastructure and ensure that growth benefits the country and the broader African continent.” 

Distributed by APO Group on behalf of African Energy Chamber.

Source: Africa.com

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At a time when the domestic revenue from the traditional tax sources is fast dwindling, governments in the last two decades have made some attempts to focus on what many have described as ‘low hanging fruit’, property taxes, to shore up domestic revenue.

At a time when the domestic revenue from the traditional tax sources is fast dwindling, governments in the last two decades have made some attempts to focus on what many have described as ‘low hanging fruit’, property taxes, to shore up domestic revenue.

There have been many projections made and experts believe that considering the number and nature of properties littered across the country, particularly those in prime areas such as East Legon, Cantonments, Ridge, Adentan, Airport residential, all in Accra, and other parts in the Ashanti, Western and Northern regions, there is the need for the government to seriously up its game to collect more property taxes, at least, from the affluent.

There have been many projections made and experts believe that considering the number and nature of properties littered across the country, particularly those in prime areas such as East Legon, Cantonments, Ridge, Adentan, Airport residential, all in Accra, and other parts in the Ashanti, Western and Northern regions, there is the need for the government to seriously up its game to collect more property taxes, at least, from the affluent.

Some estimate that property tax collections can contribute between 10 and 15 per cent of the total domestic revenue raised per annum and this is enough to shore up overall domestic revenue.

In Ghana, property taxes are governed by the Local Government Act, of 1993 and collected by MMDAs. All property owners are required to pay property tax, with some exceptions.

While Ghana’s property tax system aims to be progressive, gaps in administration constrain full effectiveness. Meanwhile, there is a strong belief that by streamlining collection processes, revenue from that source will improve.

An opinion piece shared on the International Monetary Fund (IMF) blog, titled, ‘How property taxes can help low-income countries develop’, painted a picture of what countries such as Ghana, an emerging market, can do to turn around their financial fortunes.

The report said the world’s governments must raise an additional $3 trillion to achieve sustainable and inclusive economic growth goals this decade.

The cost in emerging markets equals four per cent of gross domestic product—and 16 per cent for low-income countries. 

As to how countries can finance such staggering price tags, it said large cities such as Delhi and Lagos had shown the way forward.

It was observed that taxing property more efficiently could play a meaningful role in raising revenue at the local level, allowing countries to invest more in their people, a new IMF analysis shows. 

Previous IMF research has shown that countries have ample potential to raise more domestic tax revenue if they need it—up to five percentage points of gross domestic product (GDP) over two decades. 

Of course, the political challenges of such reforms are far from trivial, as recent events in several countries suggest that raising taxes can create social unrest. 

It was clear from the report that, more efficient real estate taxes have an advantage in this regard: by being locally collected and spent, they may be politically less challenging than increases in broad-base national taxes.

Recurrent taxes on immovable property could help local governments capture the wealth generated through construction-intensive urbanisation. 

Generating such revenue fairly is especially important given the difficulty in developing countries of taxing income and wealth, which can be highly mobile.

The appeal of property taxes is clear when compared to revenue raised in advanced economies: more than one per cent of GDP on average in OECD countries, and nearly three per cent in some advanced economies. 

By contrast, they raise only around 0.1 per cent of GDP in emerging Asia and Africa. 

Achieving such a large growth requires improving property-tax coverage and addressing the capacity challenges in valuing real estate as ways to reverse the current revenue underperformance. 

New property identification technologies and simplified valuation methods have become widely available. 

With policy reforms and better technology, recurrent property tax revenues in developing countries should be at least 10 times higher than current levels.

Local revenue and spending

When well-designed, property taxes become a reliable and progressive form of municipal financing. 

They enhance the accountability of local governments since proceeds can be used to fund better local public services and tax the increase in wealth of those who own real estate that has been appreciated due to urbanisation and associated public infrastructure development. 

The tight link at the local level between revenue and spending shields property taxes from national politics and imposes higher accountability standards on local councils for the effective use of the resources.  

National legislation should regulate how much property taxes can differ across a country, limiting divergences in the level of local public services funded by this source. 

Municipalities should limit exemptions to a narrow range of public organisations, and forgone revenues should be regularly reported.

The impact on “asset-rich but cash-poor” households such as pensioners can be softened by deferring taxes until the property is sold, at which point full payment is due.

Satellites and drones

It’s best to take a gradual approach to property tax reforms, using modern technology to broaden the coverage of area-based taxes (expressed as a fixed rate per square metre). 

The goal should be to transition to full value-based property taxes in coming years as countries gain experience in implementation and market price information is meticulously recorded for periodic property valuation. 

Modern mapping technology, such as satellite imagery and aerial photography by drones, can be used to fast-track the expansion and coverage of property taxes to all parcels that ought to be included in the fiscal register.

Indian officials in Delhi and the greater Bangalore metropolitan area have started using satellite imagery to map properties in a geographic information system. In Africa, several municipalities have made impressive strides. Lagos increased tax collection fivefold to more than $1 billion in 2011 by broadening the base of its property tax, coupled with better enforcement.

The increased precision of satellite images enables the accurate measuring of surface areas and the development of fiscal register maps that depict buildings and their alterations. This allows the fast roll-out of an area-based property tax until valuation capacity has advanced to migrate toward a market value-based property-tax system that can raise more revenue.

Demand for capacity development from the IMF in this area indicates that many countries are seeing the benefits from this combination of the right policies and technology enablers. It makes property tax reform effective and politically appealing, especially when its objectives are communicated properly to the public.

Way forward

It is also imperative to note that, for the assemblies to collect property taxes more effectively, the appointment of a Chief Executive Officer must not just be based on political popularity and favours, but purely on grounds of competence in all aspects.

The MMDEC must be capable of bringing innovative ideas and must also be well-versed in financial management.
Governments must do away with nuisance taxes in the country’s tax structure to pave the way for residents and property owners to have the edge in paying property taxes.

Based on international practice, Ghana also needs to allow the monies collected by the assemblies to be used directly on development projects such as proper access roads, and security among other things within their respective metropolitan, municipality and districts. Only a small percentage should be allowed into the consolidated fund.

To say that satellites, drones, and the right policies can help countries increase revenue by up to 10 times at the local level, cannot be over-emphasised.

Property taxes can be a game changer. The potential is there but it will take more positive actions to make it work in the best interest of the country.

Source: Graphic Business

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JOHANNESBURG (miningweekly.com) – Why is it that gold equities are continuing to underperform the gold price? That is a question Mining Weekly put to Barrick president and CEO Dr Mark Bristow after he noted the lag of gold equities during the presentation of the third-quarter results of his New York- and Toronto-listed gold and copper mining company.

The gold equity underperformance comes amid demand for physical gold putting upward pressure on the gold price as de-dollarisation within the central bank reserve balances takes place.

“So, you’re effectively seeing a switching of dollars for gold in the central banks, particularly the emerging market central banks,” Bristow outlined in an interview with Mining Weekly.

The two biggest owners of treasury bonds are China and Japan. Then, again, even retail physical gold sales at Costco have been evident. Interestingly, the Western world playing in the gold space was not that apparent until two months ago.

“Over the last two months we’ve seen an increased inflow of ETF gold, and that’s Western investors investing in gold. When you look at it, one can interpret that investment in physical gold is the ultimate hedge against risk.

“As the gold price has moved up, one would expect that there would be more and more interest in gearing that gold movement, and the best way to do that is with equities. But at the same time, there’s been a redemption within most of the gold specialist funds, as people take profits, and people are trying to position themselves, I guess, for the next phase in investment opportunities. It sounds contrary, but we were a bunch of investors and there’s a logic to the fact that at a high gold price, you start seeing people taking their money out of gold funds.

“So, it’s a complex situation. It’s people wrestling with risk and to complicate it, you’ve seen the equities reach. You know, more and more eyes, although the gold price itself has outperformed the S&P, and I think the gold industry and the mining industry in general is at a place where there’s a shortage of optionality. The mining industry, apart from Barrick, hasn’t invested in exploration, which brings optionality into the stock.

“That’s the traditional driver of premiums in the gold industry, we haven’t seen that. What we’ve seen rather is fund managers and investors demanding short-term gratification, instant gratification, from equity, and as you know, the mining business is a long game with long-term capital. So, it’s a complicated situation, and, that’s what I’m managing in Barrick. I’ve always created value over the long term. It’s my driver. It’s the very foundation of our Randgold DNA, which is now Barrick’s DNA and that doesn’t always fit neatly with short-termism.

“Physical gold investment is a long-term hedge against global risk. But everyone has become very short term on equity, and that’s driving most of the equities. But gold has not performed as well as some of the other equities, and that’s where the generalists are right now. They’re in IT stocks and the big global innovation stocks; that makes sense,” Bristow pointed out.

What is Barrick planning to do to increase gold equity demand, or increase demand for Barrick equity?

We don’t need to raise money in the market. We’re effectively independent of the market and so what we need is patient, long-term investors. You would have seen that our net earnings were up 33%, cash flow up 27%. We bought back some more stock because we don’t believe that we’re optimally priced and we also reduced debt. We want a strong balance sheet so that we can remain independent given our big growth projects that we will start building next year. There were many years that we built that value foundation in Randgold before the market recognised the real value that Randgold brought in, and we’re building that in Barrick. Already, if you look at our business, we’re pointing to 30% organic growth. We don’t need other people’s money to deliver on those objectives. We’re building that optionality within our stock price enabling investors to buy something that’s got the upside such as Barrick. That’s our focus.

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How is Barrick ensuring that it closes its non-operating tailings storage facilities safely and in an environment-friendly manner?

These tailings are liabilities that were bought in North America in that over-exuberant period when Barrick ran around buying everything, and in many cases, they bought more liabilities than they even understood, and that’s a risk associated with M&A at the top of the market, which we’ve witnessed in the last few quarters. The mining industry today is growing its closure liability, and we’re shrinking it. We’ve reduced our closure liability by 36% since the beginning of the merger with Randgold.

Why aren’t you first recovering the gold from the tailings and then closing them?

We’ve done that with some of our mines and Morila was a very good example. Remember, the tailings dam mining in South Africa is often associated with very old mines that had inefficient processing facilities and super high grades. When you’re mining and processing 20 g/t, or even 10 g/t, and you’re getting 90% out, still one to two grams is in the tailings dam, and that’s a great business at these gold prices. But a lot of the tailings dams that we are dealing with, legacy dams, are a product of much lower-grade processes. We check all these tailings dams for viability as far as reprocessing goes. It’s part of the closure.

You spoke about skills being in short supply in the US and you are planning to automate. In what respect will you automate?

Labour is expensive in the US and if there’s one model for where automation may pay real returns is when you have expensive labour, and then not a lot of it. We’ve invested heavily in Nevada. There’s always labour turnover in a developed economy when it comes to hard work. We feel that if we’re going to pioneer a viable automation integration, America is a good place to start. But having said that, we have just completed our first one-mine proof-of-concept, which is a fully integrated, digitalised mine in Kibali. Now that we’ve got it working, we’re also rolling that out across the organisation. That’s really pulling together all the data nodes that sit on our process controls and machine optimisation software. People are very quick to refer to AI, but it’s a little bit different because we’re not intelligent yet. We’re very smart in data processing, and that’s what we are using to further optimise our capital base, particularly in processing. We do it in new, modern big trucks and underground equipment. They all have enormous data points, which you can use to monitor and manage machine efficiency and planned maintenance, et cetera. So, Barrick is moving towards that integrated real-time data and ability to process it for many aspects.

Is the whole of Kibali digitised or just a section of it?

It’s the whole of Kibali as part of the one-mine policy. We have one mine so we can see the whole mine, whether it’s the underground production or the processing throughput or the recoveries, or whatever. Kibali is one of our most automated mines, and so we used it as our proof-of-concept and based on that, we can now look to roll it out, and we’re busy doing that across the group.

How long did it take to digitise Kibali?

About 10 to 12 months. It’s quite fast. We introduced digitisation as a group initiative, so we’ve all watched it and been part of it, and now we’re educating the different regions to be able to roll out digitalisation across their mines as well.

It’s interesting that it’s coming out of Africa.

That’s where the real leverage sits and what we’re using to put Barrick back on the map.

You said it’s a mystery why Reko Diq isn’t recognised for the contribution it has the potential to make. Why do you think Reko Diq is failing to be recognised?

Perception brings a lot of prejudice in emerging markets. When we acquired Moto mines to build Kibali, there was lots of apprehension about whether it was doable and Kibali has been a fantastic investment. We brought in AngloGold Ashanti just to share the risk but I think there’s nobody in our register who would argue against the fact that maybe we should have done the whole lot. But we are 50:50 in Reka Diq as well.

POSITIONED TO COPE WITH CYCLES

Barrick’s continuing investment in its future and its ability to uncover and unlock the value opportunities embedded in its global asset portfolio position it to capitalise on the current market fundamentals as well as to continue strongly throughout the future cycles, which are inevitable.

The business is built on growing profitably without the need for mergers or acquisitions.

While 2024 has been a challenging year in many ways, Barrick’s quarter-three performance arrows point in the right direction, and the company believes a foundation has been laid for a strong fourth quarter, which should enable it to end the year at the lower end of its group gold and copper production guidance range.

The higher margins in its gold operations, driven by the higher gold price and cost discipline, are in addition to the ongoing investments in infrastructure in Nevada gold mines in the US, ongoing plant ramp-up at the flagship growth project, Pueblo Viejo, in Dominican Republic, and the progress being made with Lumwana and Reko Diq. 

Source: Engineering News

Castle Minerals Limited, an Australian-based mining company with substantial project areas across Ghana, has received a significant boost from Ghana’s Minerals Income Investment Fund (MIIF). 

In an announcement today, Castle Minerals said the MIIF has committed a US$2 million investment to support Castle’s gold exploration initiatives and the Kambale Graphite Project in northern Ghana.

This strategic investment, formalised in a non-binding term sheet, includes a US$500,000 share investment in Castle Minerals and a US$1.5 million stake in its Ghanaian subsidiary, Kambale Graphite Limited (KGL), which owns the Kambale Graphite Project. The deal is expected to advance the graphite project through to a pre-feasibility study, with plans to produce specialist graphite concentrates essential for lithium-ion battery anode manufacturing.

Castle’s Executive Chairman, Stephen Stone, expressed enthusiasm for the partnership, describing it as “transformational” for Castle’s operations in Ghana. 

He noted, “The proposed transformational funding arrangement with Ghana’s sovereign wealth fund…establishes a de-risking platform for the offtake of a major proportion of graphite production and the provision of development capital.” Stone added that the support aligns with Ghana’s ambition to develop Sub-Saharan Africa’s first lithium-ion battery manufacturing hub, supported by domestic sources of critical minerals like graphite and lithium.

The investment provides MIIF with substantial privileges, including preferential rights for additional capital during Kambale’s development and an option to purchase up to 50% of the graphite produced locally. MIIF will also secure representation on Castle’s and KGL’s boards, furthering Ghana’s role in the project’s governance.

MIIF CEO Edward Nana Yaw Koranteng highlighted the importance of the investment in advancing Ghana’s critical minerals sector, stating, “The Minerals Income Investment Fund of Ghana…fully aligns with the Government of Ghana’s critical minerals policy and its aspiration to establish Sub-Sahara’s first lithium-ion battery manufacturing facility.” This investment follows MIIF’s recent alliance with Atlantic Lithium’s Ewoyaa lithium project, reflecting Ghana’s growing role in the global supply chain for electric vehicle batteries and energy storage.

The Kambale Graphite Project, strategically located near the Upper West region’s capital of Wa, boasts a high-grade 22.4 million tonne resource with 8.6% graphitic carbon, meeting specifications essential for battery-grade anode production. Recent test work confirms Kambale’s graphite can achieve the stringent purity levels required for anode material in electric vehicles.

Source: Graphic Business

The World Bank has committed $9 billion in agribusiness investments, calling for the creation of a comprehensive global ecosystem as food demand is set to increase by up to 60 per cent. 

The call follows the Bank’s observation of four emerging shifts that could reshape the agribusiness landscape such as improving productivity, climate resilience, and providing job security for the world’s 1.2 billion young people in the next decade. 

The President of World Bank Group, Ajay Banga, echoed the need for world leaders and development partners to ensure that the opportunities in the agribusiness sector were harnessed for the good of all. 

He was speaking on “Agriculture and food as an engine for sustainable growth and jobs,” on Wednesday, at the 2024 International Monetary Fund (IMF)/WBG Annual Meetings in Washington, DC (USA). 

The four pivotal shifts – climate finance, private capital flow, advancements in digitalisation, and the linkage between smallholder farmers and large food companies and traders, he said, presented opportunities for reshaping agribusiness. 

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“We are combining a new way of working with a new level of investment – doubling our agri-finance and agribusiness commitments to $9 billion annually by 2030.Taking advantage of this opportunity will not happen without a new approach. For us, that change begins today to create a comprehensive ecosystem for agribusiness,” he said. 

Mr Banga noted that the Bank had for the past 16 months examined the challenges from every angle – how to increase food production, boost productivity, and resolve issues around water scarcity, fertilizers, infrastructure, and financing. 

“It moves us beyond fragmented efforts to a constellation of solutions that includes everything from warehousing to logistics to production, but with smallholder farmers and producer organizations at the centre,” he added. 

He stated that with the Bank’s newly simplified Guarantee Platform, there would be a boost in agric and agribusiness transformation, making it easier to deliver tailored solutions to meet the diverse demands of various partners. 

“The effort to transform agribusiness is not only about securing the food systems of tomorrow—it is fundamentally a jobs initiative… delivering quality of life and job opportunities,” Mr Banga said. 

The provision of jobs, he said had become necessary as in the next 10 years, 1.2 billion young people in developing countries would enter the workforce, with only 420 million jobs projected to be available, leaving nearly 800 million without a clear path to employment. 

“We stand at a crossroads, and the path we choose today will determine the future. By transforming agriculture and agribusiness, we can create the food system of tomorrow, raise living standards, and create jobs,” he stated. 

“The increase in agricultural productivity—and incomes—will help create jobs, boost revenues, and improve the quality of food and nutrition.

Climate-smart production practices will mean fewer emissions and cleaner air and water. Overall, a better quality of life,” the World Bank President said. 

Source: Graphic Business

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Thousands of international students expected to study at three Ontario colleges are missing the fall semester, after Ottawa announced it would further tighten Canada’s study permit system.

Some school officials are attributing the dramatic enrollment decline to a chilling effect created by the federal government’s policy, and to visa delays that have resulted from a stricter approach.

Glenn Vollebregt, the president of St. Lawrence College in Kingston, Ont., said his college was expecting 1,600 new international students this fall, but only 775 are enrolled in courses.

“This is not normal,” said Vollebregt, who confirmed many of the students had trouble getting their visas on time, and the college has approved deferral requests for about one-third of the students.

“This is … a direct result of some of the federal policy decisions that we’ve seen take place.”

Last month, Immigration Minister Marc Miller announced he would lower the cap by another 10 per cent, meaning some 300,000 fewer permits would be issued over the next few years. Canada plans a limit of 437,000 study permits in 2025 and 2026.

Vollebregt said the policy means Canada’s brand as an education destination has taken a hit. “Essentially it’s Canada saying we’re closed for business,” he said.

Michael McDonald, director of government relations and policy for Colleges and Institutes Canada, said colleges have expressed deep concerns about a drop in international student enrolments this fall.

“We are expecting sizable declines across our membership,” he said.

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McDonald said he thinks the federal changes have brought uncertainty — both for schools, which rely heavily on international students’ tuition fees, and for potential students, who are deciding whether to come to Canada to continue their studies.

“We think that kind of uncertainty further depresses … enrolments and puts into question a lot of the recruitment efforts,” he said.

Ottawa insists a cap on international students is necessary to bring stability to the country’s ballooning population of temporary residents.

“The annual growth in the number of international students couldn’t be sustained while ensuring students receive the support they need,” said Michelle Carbert, an Immigration Department spokesperson.

“International students are not responsible for the challenges that communities are facing, but the recent skyrocketing growth of this population puts significant pressure on services.”

Carbert said foreign students are encouraged to apply for visas as soon as they get a letter of acceptance from learning institutions to avoid delays.

Mohawk College, which has several campuses in different Ontario cities, welcomed close to 1,500 students from other countries this fall — about 38 per cent fewer than last year, said Katie Burrows, its vice-president for international students.

“This is significant, and it is completely out of the norm,” she said.

She added there is a financial hit that comes from not seeing the expected fees come in. “This year, we can manage it. Going forward, it’s going to be more difficult,” she said.

The college just opened a new 300-bed student residence in downtown Hamilton in anticipation of welcoming more international students, Burrows said — but only 60 students are living there.

She attributed the decrease to several factors, including concerns foreign students have about their future in Canada because of government policy.

Another of the federal changes would affect the availability of work permits for college graduates, which were widely available in the past but will now be restricted to areas that have labour-market shortages in Canada. The change will affect students who apply for permits after Nov. 1.

That has seemingly been the case at Conestoga College, too, which said 1,400 international students deferred their fall programs to the winter semester.

“These deferrals may be the result of visa delays,” said Brenda Bereczki, the executive director of corporate communications at the college.

Brian-Paul Welsh, an immigration consultant at Northern Education Consultants, agreed with the school officials that there are two main factors at play — foreign students rethinking their destinations and “significant” visa delays.

Welsh said Immigration, Refugees and Citizenship Canada had previously come under fire for not reviewing visa applications as carefully as it should have.

That has changed recently, and now every application is being reviewed “quite thoroughly to ensure that they meet the criteria before they give them a successful decision,” he said.

Another layer of bureaucracy could be adding to the time it takes, he said. Ottawa announced in January it would require provinces to issue attestation letters for international students, without which students couldn’t apply for a visa.

Still, Welsh said the larger issue may be the federal government’s policy direction.

Students may be holding back while they wait and see whether the possibility of becoming a permanent resident after their studies is still in the cards, he said.

“The potential benefits might not outweigh what they know it would actually cost,” he said.

Source: GlobalNews

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(Bloomberg) — UK business groups warned the country’s new Labour government against raising a key tax on employers after Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves both signaled a hike is being considered at the budget later this month.

Executives on Tuesday warned that raising the payroll tax — known as national insurance — would hurt economic activity, with a particular impact on the retail and hospitality sectors. That came after both Starmer and Reeves suggested their electoral promise not to raise NI applied only to the component paid by workers, and not to the rate levied on employers.

“It would be a really damaging way to raise the money,” Neil Carberry, chief executive officer of the Recruitment and Employment Confederation, told Bloomberg Radio. “National Insurance isn’t a tax on profits. It’s a tax on activity. It falls most heavily on labor-intensive firms. Those tend to be retailers, hospitality, health firms, consumer-facing businesses,” he added, describing the proposal as a “real challenge” for high streets.

The push-back illustrates the difficult decisions Reeves faces as she seeks to use her budget to plug what she’s called a £22 billion ($29 billion) void in the public finances this year, without holding back growth or breaking election manifesto commitments ruling out rises on “working people” to income tax, national insurance and value-added tax — the Treasury’s main revenue-raisers.

While Labour could expect to face claims from the opposition Tories that doing so would contradict its manifesto wording, government officials argue the document left enough leeway to raise the payroll tax for businesses. Moreover, the Tories attacked Labour during the campaign for not ruling out a rise in NI for employers.

Reeves has said that tax rises are coming at her Oct. 30 budget, and she and Starmer this week have given their strongest indication yet that they are considering increasing the business component of the payroll tax.

“We were very clear in the manifesto that we wouldn’t be increasing tax on working people,” the premier told BBC TV on Tuesday, when asked if the election commitment on national insurance applied to employers as well as employees.

The premier’s language was a repeat of what Reeves told reporters at an international investment summit hosted in London on Monday, and will be seen as a clear hint that the government is considering the move.

Lifting the main employer rate of national insurance by one percentage point would raise £8.45 billion in the 2025-26 financial year, according to estimates published by His Majesty’s Revenue and Customs.

“If we see a rise in national insurance contributions paid by employers, that’s going to increase the cost of taking someone on, of creating a job, and that will make it more difficult for businesses,” Rain Newton-Smith, director-general of the Confederation of British Industry, told BBC radio on Tuesday. She said such a rise would in particular affect firms “who are creating a lot of jobs across our hospitality sector, our hotels, our pubs.”

That view was backed up by Kate Nicholls, chief executive of UK Hospitality. “An increase would particularly hammer sectors like hospitality, where staffing costs are the biggest business expense,” she said. “Hospitality businesses are much less able to stomach yet another cost increase, when they’re already managing increases in other areas like wages, food, drink and energy.”

Meanwhile Craig Beaumont, executive director at the Federation of Small Businesses, told Bloomberg that such a tax rise would fall hardest on the UK’s one million small employers.

“It’s these who create local jobs and take on those furthest from the labor market,” Beaumont said. “A hike would mean less growth, an acceleration of the dip in jobs we are seeing in UK small businesses, and downward pressure on pay and pension contributions – all directly hitting working people.”

Newton-Smith also flagged potential consequences for economic growth and the money the Treasury has to fund Britain’s already-stretched public services. “If those overall increases in costs of hiring aren’t matched by higher productivity, then it makes it harder for businesses to create the jobs and the growth that we need to really fund our public services,” she said.

Source: Bloomberg

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Ghana’s import market continues to be dominated by refined petroleum products, with gas oil and motor spirit super accounting for a quarter of the total import bill in the second quarter of the year.

Out of the country’s total import bill of GH¢58.8, gas oil accounted for GH¢7.3 billion, with motor spirit super accounting for GH¢7.2 billion.

Presenting the international trade statistics for the second quarter of 2024, Government Statistician, Professor Samuel Kobina Annim, said the country’s total trade value was GH¢123.0 billion, with exports totaling GH¢64.2 billion and imports totaling GH¢58.8 billion.

This led to a trade surplus of GH₵5.4 billion, marking a reversal from a deficit of GH¢3.1 billion recorded in the same period in 2023.

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Trade partners

He said the data indicated that Asia remains Ghana’s leading trade partner, contributing over half of the country’s imports and nearly half of its exports in the period under review.

“Between the second quarter of 2023 and second quarter of 2024, the share of imports from Europe declined by 7.5 per cent, while imports from Asia increased substantially by 8.5 per cent,” he said.

He said Gold bullion led Ghana’s exports with a value of GH¢37.0 billion, accounting for 57.6 per cent of total exports.

Other major exports included crude petroleum (GH¢12.6 billion) and cashew nuts (GH₵1.2 billion).

Top export destination

The United Arab Emirates (UAE) remained Ghana’s top export destination, accounting for GH¢15.0 billion, representing 23.3 per cent of total exports.

Switzerland followed closely with exports valued at GH¢13.2 billion representing 20.5 per cent, while South Africa ranked third, with exports amounting to GH₵8.3 billion (12.9%).

China remained the primary source of Ghana’s imports, contributing GH¢12.3 billion (20.9% of total imports), followed by the UAE with a value of GH¢9.1 billion (15.4%) and the United Kingdom with an import value of GH¢5.2 billion (8.8%).

Prof Annim said the Export and Import Unit Value Indices (UVIs) revealed price shifts in key commodities, adding that export prices recorded a 40.5 per cent year-on-year increase, driven largely by surging gold prices while import prices increased by 18.9 per cent.

“In the computation of nominal and real trade values, we have denominated it in cedis. The more than doubling of the nominal values were from GH¢46.3 billion around the second quarter of 2021 to the current figure of GH¢123 billion, so we have adjusted for price changes from a cedi-denominated perspective,” he said.

Source: Graphic Business

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By outsourcing HR functions to GroConsult, companies can concentrate on their core business activities rather than getting bogged down by administrative tasks related to employment management. This allows for better resource allocation and strategic focus on growth initiatives.

In a significant development for Africa’s economic future, the African Capacity Building Foundation (ACBF), the leading institution for capacity development in Africa, and the African Tax Administration Forum (ATAF), the continent’s premier authority in tax matters, have signed a Memorandum of Understanding (MoU). 

This MoU marks a critical step towards strengthening Africa’s tax systems by enhancing capacity building initiatives for domestic resource mobilization and supporting sustainable development in Africa.

Under this MOU, ACBF will provide expertise in leadership development, capacity building, and institutional strengthening through its Institutional Accelerator Model (IAM), in support of the public financial management system in Africa, drawing from its extensive experience in building human capital and institutional capacity for Africa’s sustainable development. 

ATAF will provide expertise in tax administration, policy, and legislation, building on its proven track record of enhancing African tax systems.

 “Strengthening domestic resource mobilization is fundamental to any robust global public financial management system. ACBF remains dedicated to collaborating with African nations to support these critical development areas. Our strategic partnership with ATAF, recognized as the leading authority on taxation in Africa, will significantly enhance and complement ACBF’s ongoing efforts to strengthen the capacity of African countries to finance their development priorities.” said Mr. Mamadou Biteye, Executive Secretary of ACBF.

By combining expertise and resources, ACBF and ATAF will support African countries in building robust tax systems, ultimately contributing to improved domestic resource mobilization and sustainable development. This partnership will focus on key initiatives, including capacity building programs for senior tax administration and policy leaders, developing organizational assessment tools, and promoting best tax capacity building practices. Additionally, the collaboration will facilitate research and knowledge sharing on tax policy and administration, ensuring that African countries receive comprehensive support in building effective tax systems. These initiatives will form the backbone of our joint efforts. 

 “This MoU marks a significant step in advancing Africa’s tax systems and supporting the broader mandate of ATAF towards effective and sustainable tax administrations. By combining ATAF’s experience and expertise in tax matters with ACBF’s capacity-building expertise, this partnership will strengthen our collective efforts to enhance domestic resource mobilization and improve fiscal management across the continent. Through this collaboration, we aim to build a more robust tax infrastructure that equips African nations to meet future challenges and support sustainable development.” commented Mr. Logan Wort, ATAF Executive Secretary. 

With this MoU, ACBF and ATAF are committed to a long-term goal of significantly improving the efficiency and effectiveness of Africa’s taxation architecture. This commitment is a testament to our belief in the potential of African leaders and institutions to drive inclusive growth and sustainable development on the continent. We are optimistic about this partnership’s positive impact on increased domestic resource mobilization and sustainable development.

Source: Daily Observer

WHAT MAKES GROCONSULT’S PAYROLL AND TAX COMPLIANCE SERVICES UNIQUE

GroConsult’s payroll and tax compliance services stand out in several key ways that make them unique and beneficial for businesses.

First and foremost, GroConsult offers a comprehensive approach that ensures clients remain compliant with local and national regulations. This is crucial in a landscape where tax laws and payroll regulations can frequently change. By staying updated on these changes, GroConsult helps businesses avoid costly penalties and legal issues that can arise from non-compliance.

Another distinctive feature is the personalized service that GroConsult provides. The team works closely with clients to understand their specific needs and challenges, offering tailored solutions that fit their unique circumstances. This client-centric approach not only enhances the quality of service but also builds strong, trusting relationships.

Additionally, GroConsult integrates technology into its payroll processes, utilizing advanced software that streamlines payroll management. This integration ensures accuracy in calculations, timely payments, and efficient reporting, allowing businesses to focus on their core operations without the stress of managing payroll complexities.

Furthermore, GroConsult’s experience in managing payroll for both local and international companies adds a layer of expertise that is invaluable for businesses operating in multiple jurisdictions. Their understanding of various labor laws and tax implications across different regions enables them to provide informed guidance to clients expanding their operations.

Finally, GroConsult’s commitment to providing ongoing support and resources, such as training and compliance updates, empowers clients to stay informed and proactive in their payroll and tax management. This dedication to continuous improvement and education sets GroConsult apart as a leader in payroll and tax compliance services.

In summary, GroConsult’s unique blend of comprehensive compliance, personalized service, technological integration, international expertise, and ongoing support makes its payroll and tax compliance services a valuable asset for businesses seeking to navigate the complexities of payroll management effectively.

The African Union Commission (AUC) and the Global Africa Business Initiative (GABI), an initiative of the United Nations (UN) Global Compact, have renewed their commitment to advancing development across the African continent. 

This follows the signing of letters of intent, marking a significant step towards strengthening the bond and realising the mutual goals of the two institutions. 

The institutions have, over the past two years, been working together, harnessing the continent’s potential by promoting investments in trade and business opportunities. 

The signing of the letters of intent is to, therefore, strengthen collaboration between the two parties and advance mutual goals in the AU 2024 Agenda for education and GABI’s 2024 themes, as well as the broader and longer term partnership towards the achievement of the AU Agenda 2063 and the Sustainable Development Goals (SDG). 

The signing of the letters of intent occurred on the sidelines of the AU Sixth Mid-Year Coordination Meeting, in Accra, over the weekend.

Madam Tolulope Lewis Tamoka, Chief of Intergovernmental Relations and Africa, UN Global Compact, signed on behalf of GABI, while Mr Albert M. Muchanga, Commissioner for Trade and Industry of the AUC, signed on behalf of the Commission.

Present at the signing ceremony were Madam Fatima Kyari Mohammed, AU Permanent Observer Mission to the UN; Dr Benedict Okeychukwu Oramah, President and Chairman of the Board of Directors, African Export–Import Bank (Afreximbank) and Mr Charles Abani, UN Resident Coordinator to Ghana.

Speaking at the event, Madam Fatima Mohammed, AU Permanent Observer Mission to the UN, described the signing of the letters of intent as a significant milestone which would solidify Africa’s “strong working relations with the UN” and also institutionalise the GABI, which had become a huge platform for foreign engagement with the private sector.

She called for deliberative actions in all sectors of the African economy, particularly with the private sector, to ensure the achievement of set out goals.

Madam Fatima noted that the private sector played a crucial role in driving economic growth, creating jobs and fostering innovations across the continent. 

Leveraging opportunities within the sector towards achieving Agenda 2063 and the SDGs, she said, therefore, required strategic and deliberate actions.

“We need to be deliberate in our actions to be inclusive to ensure all sectors of the society benefit in order for growth to be sustainable. We need to be deliberate when it comes to investment and focused in ensuring human capital development for education, and trading as well as investment in healthcare and critical infrastructure.

“We need to be deliberate in strengthening our institutions to ensure a conducive environment for businesses to thrive and we need to be deliberate in our efforts to achieving regional integration, facilitating trade and investment across Africa borders through initiatives such as the Africa Continental Free Trade Area (AfCFTA),” she stressed.

Mr Muchanga, AUC Commissioner of Trade and Industry, expressed excitement about the signing of the letters of intent, saying it would consolidate engagement between the two parties and ensure prosperity for the continent.

He also reaffirmed the Commission’s commitment to collaborating with the UN towards achieving a common goal, adding that it was ready to ensure full implementation of the letters of intent.

“We are committed to implementing the letters of intent that we have signed.” 

Dr Oramah, President and Chairman of the Board of Directors, African Export–Import Bank (Afreximbank), said the Bank was “proud to be firm supporter of the initiative”.

He said as a Bank, it believed in the African global movement, saying “any initiative that brings all of us together is a positive one for the continent of Africa.”

Mr Charles Abani, UN Resident Coordinator to Ghana, also highlighted the importance of the private sector in achieving the AU 2063 agenda and the SDGs.

On the Agenda 2063 of the AU and the SDGs, he identified six areas as critical to achieving the targets.

This include working on food systems; improving accessibility, efficiency and affordability of energy; digital transformation and the opportunities; leveraging the private sector for jobs, creativity and strong social protection; education and addressing climate change.

Global Africa Business Initiative, also known as GABI, is the premier private-sector led global platform that galvanises African and global private and public sector leaders to amplify and accelerate Africa’s “unstoppable business, trade and investment opportunities” for Africa and the world.

GABI’s goal is to position Africa as the world’s premier business, trade and investment destination and reshape Africa’s global narrative. 

Source: GNA