BUSINESS
GHANA – The Ministry of Finance says it is «disappointed» by the US rating agency S&P Global
Ghana is once again disappointed to be sanctioned by international rating agencies for challenges that do not depend on its leaders’ ability to manage the economy, while a new rating from Fitch Ratings continues the negative series.
The Ghanaian Ministry of Finance said “disappointed by S&P’s decision to downgrade Ghana’s rating despite the bold policies implemented in 2022 to address macroeconomic challenges and ensure debt sustainability, greatly exacerbated by the impact of these global external shocks on the economy”
In a note published on 6 August, the American Credit Rating Agency estimated that Ghana’s efforts to reduce its deficit position were insufficient to restore balance to its debt. Among other things, its analyses are based on the fact that the country’s borrowing costs are increasing rapidly, while economic growth is moving at a slower pace, which contributes to further degrading the debt-to-GDP ratio.
The situation provokes a second disagreement with Ghana, which has hitherto been a respected issuer of debt on the international capital market. The country’s first speculative rating was given by Moody’s, whose analysts also doubted the country’s ability to repay its debt. Following S&P Global Ratings, Fitch Ratings, which on 10 August also estimated that Ghana’s public debt was “speculative”.
The country is indeed facing macroeconomic challenges, but upon analysis, a large part of these challenges are international in nature and the government has little means to intervene. Even if inflation, which is eroding the purchasing power of households and therefore the country’s growth, reached 29.8% at the end of June 2022, it is important to note that this difficulty is partly due to US monetary policy. which struggles to control its own inflation and leads to a rise in the dollar, impacting exposed countries such as Ghana.
A similar reasoning can be applied to the depreciation of Cedis, which reinforces the effects of inflation and the ability to honour international commitments. Ghana’s central bank is running out of options, after raising key rates to historic levels. The severity of the opinions issued by the rating agencies will not fail to make more than one leader in Africa think.
Many countries that have shown strong resilience during the most challenging times of Covid-19, and continue to resist negative external factors, are at risk of being deemed “speculative” for challenges that do not depend on their domestic policies. This situation could lead to even greater difficulties in accessing capital markets for a continent which sometimes requires a budgetary orthodoxy that is not always found in developed countries, They are considered to be more reliable, and yet they have been at the root of the biggest crises of the last decade, not to mention the global warming for which they are largely responsible.
Source : Agence Ecofin / Par Idriss Linge
The presidency of Togo has announced that the project to exploit the manganese mine of Nayega, located in the Savanes region in the north of the country, is entering its operational phase. According to a statement issued on June 10, 2025, production is scheduled to start at the end of June 2025, with an initial volume of 4,000 tons per month, which should gradually double to reach 8,000 tons per month.
Keras Resources is the technical partner retained by the Togolese government to carry out this project. A statement from Keras, relayed by the presidency, details that the company signed a cooperation agreement in 2023 with the Togolese state, owner of the mine through the Togolese Manganese Company (STM). Under the terms of this agreement, Keras will receive a remuneration of 1.5% of the mine’s gross revenue for three years for its advisory services, as well as 6% for brokering services.
The reserves of the Nayega mine are estimated at 8.5 million tonnes, which would allow exploitation over a period of 11 years. The authorities of Lomé welcome the expected contribution of the mine to the national budget, a benefit that should be strengthened by the rigorous management of the generated revenues, as indicated by our colleagues from Agence Afrique.
With a growing global demand for manganese, particularly in steel alloys and renewable energy technologies, Togo is seeking to assert itself as an essential supplier of this strategic ore. This positioning could play a catalytic role for the national economy, always according to information from the Africa Agency.
Source: senego / Photo credit: Republicoftogo.com
The Gabonese government decided on Friday to ban the import of broilers in order to promote national poultry production and ensure food security, according to the final communiqué of the council of ministers chaired by the head of state, Brice Clotaire Oligui Nguema.
The ban will be effective from 1 January 2027, thus leaving a period of 18 months (1 year and 6 months) for actors in the sector to structure themselves, invest and prepare to meet national demand.
“This measure aims to restore domestic poultry production, boost agricultural investment, reduce food dependency and strengthen the trade balance,” the government hopes. Gabon also hopes to foster “the emergence of a network of rural jobs, the rise in quality of products consumed locally and the creation of an economic ecosystem around this sector”.
The government has also planned a detailed operational plan to be presented within 45 days by the ministers responsible for economy and trade.
Libreville dreams of reducing its dependence on poultry imports and strengthening the country’s food security. In addition, the promotion of local poultry farming should have a positive impact on rural areas, generating jobs and contributing to the development of a vibrant poultry ecosystem.
Imported frozen chicken is the most consumed food in Gabon because of its low price and packaging ready to be thrown into a pot.
“The star of the freezer” is how Gabonese people refer to frozen chicken because it is often the only food, if not the default food, found in the freezers of Gabonese families.
Frozen chicken and meat are generally imported from Latin America and Europe. Their massive presence on the market has destroyed local production.
The Council of Ministers also announced a ban on exporting crude manganese from 1 January 2029. The objective is to promote local industrial development, create jobs and maximize the value of this resource, of which Gabon is the world’s second largest producer.
Sources: gabonactu.com
Mauritania is in the spotlight. On Thursday, May 29, 2025, Sidi Ould Tah was elected president of the African Development Bank (AfDB), at the annual meeting of the institution held in Abidjan. He succeeds Akinwumi Adesina of Nigeria, in office since 2015.
His election came after a hard-fought duel against Samuel Munzele Maimbo of Zambia, who finished in second place. The election, which was marked by major geopolitical and economic issues, took place against a background of high expectations regarding governance and development financing on the continent.
The Senegalese Amadou Hott, long perceived as one of the favorites, finishes in third place, followed by the South African Bajabulile Swazi Tshabalala. Despite significant diplomatic support, notably for Hott, the momentum in favour of Sidi Ould Tah has prevailed in the last few rounds.
Former minister and general manager of the Arab Bank for Economic Development in Africa (BADEA), Sidi Ould Tah is recognized for his experience and strategic vision. He will officially take office on 1 September 2025.
Photo credit: Forbes Africa
