Economy
Ghana Poll: SME Should Top Winner’s Agenda—Nmonwu
By Dipo Olowookere
The party that emerges as the winner of Ghana’s general election, to be held on 7 December, should seize the opportunity to drive economic growth by creating policies and a legislative environment where business builders can thrive.
That’s according to Mr Magnus Nmonwu, Regional Director for Sage in West Africa, the market and technology leader for integrated accounting, HR & payroll, and payment systems.
He said improving the ease of doing business as well as setting sound macro-economic policies would help to generate GDP growth for the Ghanaian economy.
Small & Medium Businesses are an engine for job and wealth creation in several growing economies around the world.
“Ghana has been an exemplary democracy for the past two decades and made some impressive progress in reducing poverty during the last commodities boom.
With its sound legal system and a regulatory environment that gives businesses stability, it is one of the most business-friendly countries in sub Saharan Africa,” says Mr Nmonwu.
“We believe that the time is now ripe for the government to collaborate more closely with the private sector on ways to create jobs and raise income levels. With an estimated 90% of businesses in Ghana being Small & Medium Businesses, this sector generates and drives much of Ghana’s income and employment. Supporting it can rekindle economic growth for the country.”
Mr Nmonwu further noted that one of Ghana’s most significant economic opportunities lies in diversifying its economic base and boosting exports. Government can support these opportunities through targeted investments in infrastructure, education and vocational training, and small business financing. “We have seen some interesting initiatives in recent years,” he adds.
Financing remains a challenge
“For example, the launch of the Ghana EXIM (Export Import) Bank addresses the need for financing if business builders in the country are to grow the small business sector and exports. Financing remains a challenge for many smaller Ghanaian companies, so providing them with low-interest loans is an intervention that will make a difference.”
Another area where focus could pay off is skills development, particularly with an emphasis on the science, technology, engineering and mathematics skills needed to boost the economy into the digital age and services economy. Ghana should also look at how investments in roads, power and telecoms – in partnership with the private sector – might drive growth by lifting productivity; it could also be a way to create opportunities for small businesses through procurement.
Modernising government IT
Modernising the government’s ICT system is another opportunity, Mr Nmonwu says. “By implementing the right accounting, payroll and citizen interaction systems, the government can improve efficiencies while showing its commitment to accountability and transparency,” he adds. “It can also use online technology to make it easier for entrepreneurs and individuals to interact with the government.”
“Entrepreneurship has the potential to power the economies in West African countries. It is entrepreneurs who are the drivers of prosperity, and it is in government’s interest to support them,” he says. “Business builders take risks to follow their dreams and pursue their passions, and they hold the key to West Africa’s prosperity.”
By Adedapo Adesanya
The Naira recovered about 0.26 per cent or N3.99 against the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Thursday, January 23 after coming under pressure in recent times.
During the session, the exchange rate of the local currency to its American counterpart closed at N1,548.59/$1 in the official market compared with the previous day’s N1,552.58/$1.
Also, against the Pound Sterling, the domestic currency gained N3.32 yesterday to trade at N1,912.21/£1 compared with Wednesday’s value of N1,915.53/£1 and on the Euro, it improved by N3.82 to sell for N1,617.72/€1 versus N1,613.89/€1.
The forex market may be reacting positively to news that the Central Bank of Nigeria (CBN) would launch a FX Code, which will serve as a guideline to the banking industry to promote ethical conduct of Authorised Dealers in the Nigerian FX market, next week.
The code will further reduce speculative activities, eliminate market distortions, and give the CBN improved oversight capabilities to effectively regulate the market.
The bank noted that authorised dealers would subsequently conduct all FX transactions in the interbank FX market on the EFEMS approved by the apex bank where transactions will be reflected immediately.
However, in the black market segment, the Nigerian Naira lost N5 against the greenback during the session to quote at N1,665/$1, in contrast to midweek’s rate of N1,660/$1.
As for the cryptocurrency market, it was lively yesterday as attention is increasingly centered on potential policy developments under the government of President Donald Trump of the US.
On Thursday, President Trump signed an executive order to ban the digital dollar and promote crypto and AI innovation in the country.
Meanwhile, the US data released recently showed the “all tenant rent” index, which leads the shelter inflation in the Consumer Price Index (CPI), rose at a slower pace last quarter. That has raised hopes that the US Federal Reserve will walk back on its hawkish December rate forecasts.
These helped Ethereum (ETH) gain 5.4 per cent on Thursday to sell at $3,394.79, Solana (SOL) appreciated by 4.4 per cent to $260.86, Cardano (ADA) jumped by 2.9 per cent to $1.00, and Litecoin (LTC) expanded by 2.6 per cent to $116.78.
Further, Bitcoin (BTC) rose by 2.1 per cent to $1o4,978.31, Ripple (XRP) leapt by 0.7 per cent to $3.16, Dogecoin (DOGE) increased by 0.6 per cent to $0.3572, and Binance Coin (BNB) soared by 1.6 per cent to $710.31, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 each.
By Adedapo Adesanya
The global crude oil market waned on Thursday after the US President, Mr Donald Trump, urged the Organisation of the Petroleum Exporting Countries (OPEC) to bring down the cost of the commodity during his address at the World Economic Forum (WEF).
Brent crude futures lost 71 cents or 0.9 per cent after the speech to close at $78.29 a barrel and the US West Texas Intermediate crude (WTI) crude futures contracted by 82 cents or 1.09 per cent to $74.62 per barrel.
At WEF in Davos, Switzerland, President Trump announced he would ask Saudi Arabia and OPEC to bring down the cost of oil.
Since he took office, the uncertainty over how Mr Trump’s proposed tariffs and energy policies would affect global economic growth and energy demand have weighed on prices.
He threatened to add new tariffs to his sanctions threat against Russia if the country does not make a deal to end its war with Ukraine.
He also vowed to hit the European Union with tariffs and impose 25 per cent tariffs against Canada and Mexico.
On China, Mr Trump said his administration was discussing a 10 per cent punitive duty because fentanyl is being sent from there to the US.
On Monday, he declared a national energy emergency intended to provide him with the authority to reduce environmental restrictions on energy infrastructure and projects; and ease permitting for new transmission and pipeline infrastructure.
Market analysts say there will be more potential for a downward choppy movement in the oil market in the near term due to the Trump administration’s lack of clarity on trade tariffs policy and the impending higher oil supplies from the US.
Meanwhile, the US Energy Information Administration (EIA) reported an inventory dip of 1 million barrels for the week to January 17. In fuels, the EIA estimated mixed changes.
The change in crude inventories compared with a draw of 2 million barrels for the previous week, which also saw another round of sizable builds in fuels.
This contradicts forecasts by the American Petroleum Institute (API) which showed that on the US oil inventory front, crude stocks rose by 958,000 barrels in the week ending January 17 and added that gasoline (petrol) inventories rose by 3.23 million barrels and distillate stocks climbed by 1.88 million barrels, they said.
By Dipo Olowookere
The recalibration of portfolios by investors further depressed the Nigerian Exchange (NGX) Limited on Thursday by 0.05 per cent in the absence of a positive trigger.
Amid the profit-taking, the banking space continued to witness bargain-hunting during the session, rising at the close of business by 1.04 per cent.
However, sell-offs crushed the insurance sector by 1.23 per cent, the consumer goods index depreciated by 0.81 per cent, and the energy sector lost 0.36 per cent, while the industrial goods counter closed flat.
As result, the All-Share Index (ASI) depreciated by 47.93 points to 102,788.20 points from 102,836.13 points and the market capitalisation gained N1 billion to close at N63.148 trillion compared with the preceding day’s N63.147 trillion.
Like the previous session, the market breadth index was flat after the bourse ended with 28 price gainers and 28 price losers.
Morison Industries depleted by 9.98 per cent to N3.61, C&I Leasing slumped by 9.91 per cent to N3.91, Ikeja Hotel crashed by 8.89 per cent to N12.30, Neimeth went down by 8.51 per cent to N3.44, and Sunu Assurance shed 8.03 per cent to settle at N5.50.
But SCOA Nigeria gained 9.76 per cent to sell for N3.60, DAAR Communications increased by 9.09 per cent to 84 Kobo, May and Baker jumped by 8.43 per cent to N9.00, Prestige Assurance appreciated by 6.82 per cent to N1.41, and Red Star Express chalked up 4.99 per cent to finish at N5.05.
The activity chart was mixed yesterday after the trading volume shrank by 0.10 per cent, the trading grew by 50.00 per cent, and the number of deals leapt by 12.95 per cent.
A total of 394.4 million stocks valued at N22.8 billion were traded in 12,160 deals during the session versus the 394.8 million stocks worth N15.2 billion transacted in 10,766 deals in the preceding day.
GTCO ended as the busiest equity after the sale of 42.2 million units for N2.6 billion, UBA traded 37.5 million units worth N1.3 billion, Zenith Bank transacted 25.2 million units valued at N1.2 billion, Access Holdings exchanged 24.3 million units for N601.6 million, and Jaiz Bank traded 13.8 million units worth N41.4 million.
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