Guest House project, remodeling of regional offices, others cost BoG GHS 937m in capital expenditure commitment for 2023
The Bank of Ghana has reported capital expenditure commitments totaling GH¢937.04 million for the year 2023.
This marks a substantial increase from the GH¢711.21 million capital expenditure commitments recorded in 2022.
Per the Bank’s 2023 Annual Report report, the GH¢937.04 million capital expenditure commitments were not provided for in the financial statements as of 31 December 2023.
These capital expenditure commitments by the apex bank encompass capital expenditure contracts that have been awarded but not yet executed, reflecting the central bank’s ongoing investment in major projects.
Key initiatives include the remodeling of regional offices, the development of a new Bank of Ghana headquarters, and the construction of a guest house in Tamale.
The Bank of Ghana recorded a significant deficit in 2023 with total liabilities surpassing assets by GH₵65.36 billion, representing an increase from the previous year’s GH₵54.52 billion deficit.
Impairment on the Bank’s assets regarding Government of Ghana (GoG) securities for 2023 was GH¢53.7bn. This is an increase in impairment compared to the GHS 48.4bn recorded in 2022.
Within the same review year – 2023 – the Central Bank made a loss of GHS 10.5bn.
Meanwhile, the Board of the Bank of Ghana, in a bid to fortify the Central Bank’s financial position amidst favorable macroeconomic conditions and return the Bank to a positive equity position, has unveiled a suite of strategic measures aimed at ensuring long-term sustainability and resilience.
Emphasizing the imperative of rebuilding a positive equity stance over the medium to long term, the Board has articulated a steadfast commitment to refraining from monetary financing of the Government of Ghana’s budget.
This resolve, enshrined in the Memorandum of Understanding forged with the Ministry of Finance in April 2023, underscores the Bank’s dedication to upholding fiscal prudence and averting potential inflationary pressures.
In tandem with its commitment to fiscal discipline, the Bank further remains focused on optimizing its operational efficiency and bolstering profitability. Through the continued refinement of its investment portfolio and the judicious management of operating costs, the institution seeks to enhance its financial resilience and augment its capacity to navigate the ever-evolving economic landscape.
Furthermore, Central to the Bank’s strategic agenda is the pursuit of early recapitalization, a mission that enjoys broad consensus among key stakeholders, including the Ministry of Finance and the International Monetary Fund (IMF).
In the wake of extensive deliberations stemming from the second review of the ongoing IMF program, culminating in April 2024, the Bank is poised to finalize a Memorandum of Understanding with the Ministry of Finance to delineate the roadmap for recapitalization.
