Government says non-deal engagements with offshore and domestic investors successful

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The government says its non-deal engagements with offshore and domestic investors have been largely successful and the feedback received so far from the market is encouraging.

“We have observed that Ghana’s Eurobonds spreads have started to tightened across the curve, meaning that the engagement was successful and had an impact,” Minister of State at the Finance Ministry, Charles Adu Boahen, said.

He said the engagement over the past three days had impacted the market positively and allowed the government to address investors’ concerns over the economy, in particular, on the 2022 budget.

Senior officials from the Ministry of Finance and the Bank of Ghana
embarked on a Non-Deal roadshow to engage investors on the country’s recent economic performance and outlook.

“As a government, we felt it necessary to speak directly with our investor base and assure them of the steady progress being made towards economic rebound anchored on fiscal
consolidation and debt sustainability, as we have done in the past,” the Minister said.

He said during the engagements investors raised concerns about the clarity on the policy to cut 2022 expenditure by 20 per cent across the board; 2021 Economic performance and outlook; Ghana’s relationship with the IMF and whether Government intends to undertake any
programme with the Fund.

There were also issues on the status of the E-Levy Bill before Parliament; the 2022 revenue target and Government’s ability to meet the target and the non-accessibility of the International Capital Market and its implication on Ghana’s reserves position.

Mr Adu Boahen said the country’s GDP growth was robust, despite challenging global economic challenges imposed by the COVID-19 pandemic.

He said the average growth rate of 5.2 per cent for the first three quarters of 2021 had already exceeded the budgeted growth rate of 4.4 per cent for the full year of 2021.

“Our Gross Domestic Product (GDP) growth rate continues to be robust despite the challenges. For the third quarter of 2021, GDP growth stood at 6.6 per cent compared to –3.2 per cent for the same quarter during the previous year,” Adu Boahen said.

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