• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Investors want Ghana to retain fiscal stance

5 years ago
in Economy, highlights, Home, home-news, latest News
2 min read
0 0
0
59
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Investors are hoping that the incumbent, President Nana Akufo-Addo, will retain his position in order to sort out Ghana’s fiscal challenges by winning a second term in Monday’s election.

As at Tuesday, December 8, the votes were still being counted but the incumbent president had a slight lead.

The New Patriotic Party’s Akufo-Addo faced off against his main opponent and predecessor, John Mahama, of the National Democratic Congress on Monday, December 7, 2020.

The two parties have dominated Ghanaian politics since 1992.

International investors with an interest in Ghana seem to have more confidence in the Akufo- Addo administration than one that would be put together by John Dramani Mahama in the event that he overturns the incumbent’s early lead and wins the election.

The havoc wreaked by the coronavirus pandemic drove Ghana’s ratio of debt to gross domestic product to 71% in September, the highest in four years.

Before the global health crisis, Ghana was already under fiscal pressure due to the costs of cleaning up the banking sector and meeting energy-sector liabilities.

The government was forced to abandon a fiscal rule it introduced in 2018 to cap the budget deficit at 5% of GDP in any year, with the shortfall forecast to reach 11.4% for 2020.

RelatedPosts

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

While both parties say they’re in favor of sustainable budget deficits over the next four-year term, they differ on how quickly they’ll get there.

Akufo-Addo’s NPP plans to cut the deficit to 8.3% of GDP in 2021, and below 5% of GDP by the third year of the presidential term. Mahama’s NDC has said a “more realistic” deficit for 2021 will be about 12%, even with serious structural reforms.

Here’s a round-up of investor views:

Simon Quijano-Evans, chief economist at London-based Gemcorp Capital LLP:

  • “If the incumbent government were to win the elections, markets would probably award them the benefit of the doubt, given their track record of recent years.”
  • “The current government’s fiscal plan makes sense as a baseline scenario and markets will probably judge performance on a quarterly basis.”
  • “Securing credibility in the fiscal space will help lower interest costs” to support growth and job creation.

Kevin Daly, portfolio manager at London-based Aberdeen Standard Investments:

  • All issues related to debt, including the need to increase tax revenue, “are likely to be addressed quicker by the incumbent party as they can hit the ground running.”
  • The government’s deficit plan for 2021 is “positive.”
  • The country should consider tapping international debt markets early and issuing up to $3 billion, Daly said.
  • Payment for energy-sector liabilities, “another key issue that must be addressed,” could be sought from multilateral lenders so as to reduce the amount of market financing.
  • “The new government should be open to approaching the IMF given the large 2021 financing needs.”

Mark Bohlund, senior credit analyst at REDD Intelligence:

  • “Most of the fiscal slippage occurred during the NDC’s time in office.”
  • “I expect the NDC and Mahama to be more fiscally expansive and more likely to approach creditors for a renegotiation of terms than Akufo-Addo.”

Nana Adu Ampofo and Kobi Annan, analysts at U.K. and Ghana-based Songhai Advisory:

  • The NPP deserves credit for the economic successes maintained between 2017 and 2020 pre-Covid-19, they said.
  • Taming debt “will remain the critical challenge if the NDC wins.”
  • Reorganization of debt on the heels of an NDC victory would introduce waste “at a time when the country can ill afford it.”

Dylan Smith and Andrew Matheny, Goldman Sachs economists:

  • “The market’s focus on the outcome of the vote may be missing the point. We see little to separate the economic ideology or actual policies of the two main parties.”

Tags: 2020 electionfiscal deficitinvestors
No Result
View All Result

Highlights

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

Banking Sector Soundness Remains Robust in 2024 Amid Strong Profitability, Adequate Capital Buffers

Sha’Carri Richardson Withdraws from US Trials Following Arrest

From Singuluma to El Kaabi: Can CHAN 2024 Unleash the Next Hat-trick Hero?

Ghana to Welcome King’s Baton Relay on August 8 Ahead of 2026 Commonwealth Games

Trending

Features

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes

August 2, 2025

Parliament Adjourns Sine Die After Intense Legislative Session Marked by Reform Calls and Tributes Parliament has adjourned...

GACL Terminates Evatex Revenue Assurance Contract Amid OSP Probe

August 2, 2025

Cyber Security Authority Flags Rising Mobile Data Scam, Cautions Public

August 2, 2025

Gov’t Reopens Talks With PayPal to Restore Full Service Access in Ghana

August 2, 2025
Bank of Ghana

Financial Sector Assets up 34.6% in 2024 to GHS 525.59 Billion

August 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.