President’s Monthly Insight – February 2019

February 28, 2019 / Comments (0)

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Some of the major outcomes of the 3rd German-African Business Summit (GABS) which was held in Accra from February 11 to 13 2019 were the establishment of the German-Ghanaian Business Council, the establishment of a cooperation agreement between Afrika-Verein (German Africa Business Association) and the Ghana Investment Promotion Centre (GIPC), the opening of a German Desk for financial solutions to investors and trading companies at Access Bank Ghana in cooperation with the German Development Bank for the Private Sector (DEG), the opening of the Knauf Training Center and the signing of an agreement for renewable energy supply between Siemens and Westpark Ghana.

Cumulatively the GABS, which was opened by the Ghanaian Vice-President, Dr. Bawumia together with the German Minister for Economic Cooperation and Development, Dr. Gerd Müller; Deputy Minister for Economy and Energy, Thomas Bareiß; and President of the sub-Sahara Africa Initiative of German Business (SAFRI), Prof. Heinz-Walter Große, re-enforced the predominant position of Ghana as the preferred destination for German investments in Africa. The establishment of the German-Ghanaian Business Council is expected to facilitate the exchange of information and views on economic cooperation, trade and investment as well as advance industrial cooperation on Small and Medium scale enterprises. The Council will also seek to collaborate on matters of mutual interest in respect of multilateral trade negotiations. Without a doubt, the establishment of this Council will help to address and hopefully resolve some of the issues that inhibit bilateral business relations between the two countries.

Based on the 2019 State of the Nation’s (SONA) address by President Akufo-Addo, Ghana’s GDP growth has picked up very strongly in the last two years. The real GDP growth has increased from 3.4% in 2016 to 8.1% in 2017. It was further disclosed that the 2018 provisional data for the first three quarters indicate a strong real GDP growth of 6.0%, higher than the annual target of 5.6%; thereby forecasting a real GDP growth of 7.6% for 2019. There has also been a reduction in the fiscal deficit from the 7.3% of rebased GDP in 2016 to a provisional 3.9% of GDP at the end of 2018, drop in inflation from 15.4% at the end of 2016 to 9% in January this year, the lowest in six years.

We at the GGEA recognize these improvements in the economic fundamentals of the country and remain hopeful that this is work in progress. We have confidence in the evolving Ghanaian economic story.

GGEA President                                                                                                                                     Stephen Antwi

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