mr baku u are right um at ur back corrupt ndc must go
mr baku u are right um at ur back corrupt ndc must go
america man 9 years ago
u are right baku ndc must go
u are right baku ndc must go
Citizen 9 years ago
The problem of our economy has to do with so many holes in the system that is paving the way for official corruption because or our laws are not been enforced and we take advantage od every situation to connive, loot and shar ... read full comment
The problem of our economy has to do with so many holes in the system that is paving the way for official corruption because or our laws are not been enforced and we take advantage od every situation to connive, loot and share. We need to enforce our laws and prosecute those officials who engage in sabotage and activities hat drain the economy in millions of dollars. THIS IS WAY OUR PROBLEM LIE. We should take the bull by the horns, otherwise the next coup will be messier.
KWAME KWAME 9 years ago
Because of poor negotiation skills of most African countries including Ghana in the past, we signed many mining contracts with foreign firms that were not in favor of our countries. The foreign firms benefited almost in the ... read full comment
Because of poor negotiation skills of most African countries including Ghana in the past, we signed many mining contracts with foreign firms that were not in favor of our countries. The foreign firms benefited almost in the proportion of 90:10 and left behind numerous environment hazardous conditions resulting in ill-health of folks in mining communities over the years. In time of high mineral prices, they continued to rack in the windfall profits all to themselves. Some of these companies also resort to the habit of under reporting their earnings before taxes, thereby paying lesser corporate taxes to the Ghana Government. In the absence of re-negotiation of mineral contracts, the Government has to use its fiscal policy to derive more revenue from these natural resources so we can develop our nation better. If you see how these firms take mineral ores in long trains,the soil and everything without beneficiation that can create more jobs for our people, you will realize that sooner or later there will be nothing left underground for us to mine again. We should continue to use the tax system to progressively move from the 90:10 to something like 60:40, (still in their favor). I am sure of these companies recoup their return on investment in the first 3 to 5 years of their operation. The revenues they are generating now are pure profits and there is nothing wrong for the country to share in this windfall profits for the development of the country including the the nedded infrastructure (roads, lectricity, water) as well as provision of proper health services to the people in the communities where they operate.
KWAME KWAME 9 years ago
The action of the Central Bank of Ghana makes one believe that Governor of Bank of Ghana is not independent. The independence of the Central Bank of a country is vital so that they can institute better monetary policies irre ... read full comment
The action of the Central Bank of Ghana makes one believe that Governor of Bank of Ghana is not independent. The independence of the Central Bank of a country is vital so that they can institute better monetary policies irrespective of the Government in power. In fact, the Governor of the Central Bank should be nominated the President but vetted by Parliament. He/she should given say 5 year contract, renewable for another 5 years for a total of 10 years. The contract would be renewed by parliament instead of the President based on performance. With this type of arrangement, there will be job security for the Governor even when there is a change of government. The Governor in this respect becomes non-partisan and independent, making If this is not the current arrangement, then Parliament should make the necessary changes to give more power to the selected Governor. This is the only way the Central Bank can be objective in their work with other sectors of the economy especially the Ministry of Finance and the private banks operating in the country.
KWAME KWAME 9 years ago
The huge issuance of treasury bills and bonds by the Bank of Ghana is seriously CROWDING OUT the private sector of the economy of Ghana, that is, there IS lack of access to finance for the businesses in the country especially ... read full comment
The huge issuance of treasury bills and bonds by the Bank of Ghana is seriously CROWDING OUT the private sector of the economy of Ghana, that is, there IS lack of access to finance for the businesses in the country especially for the SMEs THAT CAN TRANSFORM THE ECONMY. But we all know that private sector is the engine of growth for any nation. If we crowd out the private sector, how can our nation develop? Currently these treasury bills and bonds are paying yields or interest of between 20 -28% APR. If I am a commercial bank operating in Ghana, why will I lend money to any private company that are considered risky investment at say 20% return, if I can invest in risk-free Government Treasury bills paying me the say or more than 20% returns? THREE changes are required: First, the amount of treasury assets issued to finance Government expenditures should be drastically reduced. That is, there is need to tighten the monetary policy.
Second, The amount of treasury assets commercial banks can keep on the balance sheets needs to be drastically reduced by the Central Bank.
Third, the interbank interest rate that is charged when banks borrow/lend among themselves has to also be reduced drastically.
With this two simple reforms, the commercial banks will have no options but start to look at more potential investments from the private sector in order to keep their operations profitable. This will help the channel more financing to our private businesses, industries etc. Once we grow the private sector, the tax base will be increased and through enhanced fiscal policy, the Government will grow its revenue for its expenditures in a rather more sustainable manner. This is why its is very important that the Governor of the Bank of Ghana MUST BE INDEPENDENT. She/he can then institute these not so popular but robust policies for the benefit of the tax payer or all Ghanaians and not for just the party in power.
KWAME KWAME 9 years ago
The huge issuance of treasury bills and bonds by the Bank of Ghana is seriously CROWDING OUT the private sector of the economy of Ghana, that is, there is lack of access to finance for the businesses in the country especially ... read full comment
The huge issuance of treasury bills and bonds by the Bank of Ghana is seriously CROWDING OUT the private sector of the economy of Ghana, that is, there is lack of access to finance for the businesses in the country especially for the small and medium enterprises (SMEs) THAT CAN TRANSFORM THE ECONMY. But we all know that private sector is the engine of growth for any nation. If we crowd out the private sector, how can our nation develop? Currently these treasury bills and bonds are yielding or paying interest of between 20 -28% APR. If I am a commercial bank operating in Ghana, why will I lend money to any private company that are normally considered risky investment at say 20% return, if I can invest in risk-free Government Treasury bills paying me the say or more than 20% returns? THREE changes are required: First, the amount of treasury assets issued to finance Government expenditures should be drastically reduced. That is, there is need to tighten the monetary policy.
Second, The amount of treasury assets commercial banks can keep on their balance sheets needs to be drastically reduced by the Central Bank.
Third, the interbank interest rate that is charged when banks borrow/lend among themselves has to also be reduced drastically.
With this three simple reforms, the commercial banks will have no other options but to start to look at more potential investments from the private sector (SMEs) in order to keep their operations as going concerns and profitable. This will help channel more need financing to our private businesses, industries etc. As we grow the private sector, the tax base will be increased and through enhanced fiscal policy, the Government will grow its revenue for its expenditures in a rather more sustainable manner. This is why it is is very important that the Governor of the Bank of Ghana MUST BE INDEPENDENT. She/he can then institute these not so popular but robust policies for the benefit of the tax payer or all Ghanaians and not for just the party in power.
mr baku u are right um at ur back corrupt ndc must go
u are right baku ndc must go
The problem of our economy has to do with so many holes in the system that is paving the way for official corruption because or our laws are not been enforced and we take advantage od every situation to connive, loot and shar ...
read full comment
Because of poor negotiation skills of most African countries including Ghana in the past, we signed many mining contracts with foreign firms that were not in favor of our countries. The foreign firms benefited almost in the ...
read full comment
The action of the Central Bank of Ghana makes one believe that Governor of Bank of Ghana is not independent. The independence of the Central Bank of a country is vital so that they can institute better monetary policies irre ...
read full comment
The huge issuance of treasury bills and bonds by the Bank of Ghana is seriously CROWDING OUT the private sector of the economy of Ghana, that is, there IS lack of access to finance for the businesses in the country especially ...
read full comment
The huge issuance of treasury bills and bonds by the Bank of Ghana is seriously CROWDING OUT the private sector of the economy of Ghana, that is, there is lack of access to finance for the businesses in the country especially ...
read full comment