GNBCC’s Annual Business Breakfast

20-12-2024

GNBCC’s Annual Business Breakfast

On Tuesday, December 17, 2024, GNBCC hosted its Annual Business Breakfast Meeting, bringing together Managing Directors of GNBCC Premium Member Companies alongside invited guests from PricewaterhouseCoopers (PwC), the Ghana Investment Promotion Centre (GIPC), the Ghana International Trade and Finance Conference (GITFiC), and the Netherlands Embassy. The primary objective of the meeting was to review 2024 as an economic year and discuss anticipated changes in 2025 following the December 7 elections, with a focus on Ghana as a key investment destination.

Guests arrived promptly at the La Villa Boutique Hotel conference room, where a breakfast buffet was ready to receive them. The morning began with networking and a brief moment for guests to enjoy their meals. A little before 9:00 AM, Mr. Tjalling Yme Wiarda, GM of GNBCC and organizer of the Business Breakfast series for the past eight years, officially welcomed attendees. He expressed his gratitude to the participants for their punctuality, shared his reflections on Ghana’s economic performance over the year – he stated that it is not going well for companies : a lot of complaints about the GRA, high inflation which makes business more expensive every day and an almost bankrupt government. Also he asked why you read in the newspaper that Ghana’s economy expands 7,2% on Q 3 while most companies are in survival modus; also he wanted to know what will happen with the new GIPC act because it will not be handled by this parliament during its last sitting and all matters pending before parliament will elapse or expire when the House ceases to subsist by Midnight Jan 6 2025.

After this intro he introduced the Dutch Ambassador, H.E. Jeroen Verheul. Ambassador Verheul provided insights into Ghana’s trade relations and investment prospects, emphasizing opportunities that may arise with the installation of a new government in 2025. He stated that the Ghana electorate has foremost voted against the current government looking for an alternative and better future. This past 4 years there was no or little improvement of the business climate  because this current government did no act (only talk) . Even the new GIPC act has not been past in the Parliament these past 3,5 years. Also he mentioned Ghana did not have a stable exchange rate which affect the predictability of investing & doing business in Ghana. The tax exemption regime ; why are tax exemptions handed out ? No clarity from the side of the government . The Dutch Embassy has a focus on horticulture and cocoa in Ghana. Also in the Netherlands with the new government there are still a lot of uncertainties; the Ambassador  does not expect a lot of changes concerning the trade relation but he do expects a lot of cuts in the development cooperation – this will have no impact in Ghana because in Ghana we already went from aid to trade.  

Mr. Vish Ashiagbor, Director and Country Senior Partner at PwC, discussed the current state of the Ghanaian economy, addressing key challenges and opportunities. He examined Ghana's program outlook, promises made by the NDC, and economic forecasts from entities such as the IMF, EIU, and Fitch. PwC’s perspective on the 2025 economic outlook provided a foundation for further discussion. 2024 will have an average growth of 3,1%  and it is expected that the growth will increase to approx. 5%. At present the T-Bill rates are 29,88%, BoG policy rate is 27% with an average commercial rate of 31% if you want to borrow money for local investments . This is far too high for any local investor who needs money for expansion etc. Also the Public Financial Management Reforms  (PFM) has been stalled by this government, the government lacks discipline to cut expenses . Also the land situation is still bad, no digitalization of who owns what and it remains a source of conflict . President elect John Mahama promises to waive  a raft of existing revenue raisers / tax handles. On the other hand , he pledges to implement  projects that will need funding. How does he propose to fund these projects  without taxing ? . Mr Ashiagbor mentioned the key risks identified by IMF: Energy sector challenge, Inflationary pressures, Debt sustainability concerns, External vulnerability, Structural weaknesses and Election driven policy slippage. Also the rating agencies have their concerns and have stated that without progress on structural reforms  Ghana remains widely exposed . They mention fiscal consolidation and PFM reforms ; Property tax reforms for revenue mobilization; energy sector reforms for sustainable debt and agriculture reforms to improve trade deficits (reduce reliance on imports)

Following Mr. Ashiagbor’s presentation, Mr. Selassie Ackom, CEO of GITFiC, highlighted the macroeconomic state of the West African region in 2025, connecting his analysis to the AfCFTA agreement. He centered his discussion on projected GDP growth in countries like Togo, Senegal, Nigeria, and Côte d’Ivoire, comparing Ghana’s role in the regional economic landscape. In a comparison it was shown and expected in 2025  that the best and strongest growing economy is Senegal (9,3%) , followed by Ivory Coast with 6,4% and Togo with 5,3%. Ghana with 4,3%  is doing slightly better as Nigeria (3,16%) . It was noted by the audience that Senegal, Ivory Coast and Togo have a very low inflation rate due to their connection with the Euro.

The final presentation was delivered by Mr. Charles Opoku Mensah, Head of PR & Communication at GIPC, who reflected on the earlier presentations and shared his views on the GIPC Act and expectations for legislative and governmental changes in 2025. He emphasized the importance of fostering a stable and attractive investment climate under the incoming administration.  He mentioned that GIPC brought in 316 million US$ with 108 projects in 2024 and that indeed investors are moving to next door neighbours (Togo and Ivory Coast) . The new GIPC act needs to be resubmitted in 2025 to the new parliament and he expected it will go through in 2025.

The meeting included a Q&A session where members and guests posed questions to the speakers in an open dialogue on critical economic issues. The interaction enriched the discussions and offered clarity on some of the insights presented. Ambassador Verheul concluded the event with his final remarks, reflecting on some of the presentations and questions raised during the session. He asked what growth Ghana wants – Mr Ashaigbor had explained that the 7,2% growth was foremost in mining and quarry operations as well as in gold; not in the service industry hence ‘ the man in the street is not noticing it’ – growth through mining and gold affects the environment, due to galamsey Ghana will need to import water. What kind of investment does Ghana want to attract ?.

Also Ghana has done nothing to improve the investment climate; compare it with Rwanda; that country has steered its measures based on the World Bank report on doing business – what measures should you take as a country to improve your investment/ doing business  climate – as a result Rwanda is attracting high amounts of FDI (including Africa’s first  F 1 race this century) . They have a dedicated strategy, Ghana doesn’t. Ghana was in a very difficult position ; IMF was afraid for a Zimbabwe scenario meaning hyperinflation. Zimbabwe does not have its own currency anymore, all pensioners lost their savings due to hyperinflation, the economy collapsed – Ghana was at the brink of such an economic disaster and it is not yet safe . It has to change its act otherwise we can go immediately to IMF Programme number 18 . Let us have hope with this new government.

Mr. Wiarda expressed gratitude to the speakers for their valuable contributions and presented them with gifts from GNBCC. The event officially ended a few minutes before 11:00 AM, allowing participants to continue networking and enjoy more breakfast.

GNBCC extends its heartfelt gratitude to all guests for their participation and to the speakers for sharing their time and expertise. As Ghana prepares for 2025, we encourage all stakeholders in the business climate to reflect on the insights shared at this meeting. Together, we can work toward strengthening Ghana’s position as an investment destination. 

Click here for the pictures from the event.

Cheers to a successful 8th Annual GNBCC Business Breakfast Meeting!🍻

GNBCC | News