Ghana’s gold buying from artisanal miners, a transfer to fomarlise the commerce and considerably increase exports, would have unfavourable implications on the agriculture sector, S&P International Rankings has disclosed
The federal government, upon assuming workplace, established the Ghana Gold Board (GoldBod), the only authority with unique rights to purchase, promote, weigh, grade, assay, worth and export gold and different treasured minerals in Ghana.
However S&P is warning that this might have unfavourable results on the agriculture sector, significantly the cocoa sub sector.
“The federal government’s initiative to buy gold from artisanal miners is formalizing the commerce and considerably boosting exports, significantly within the context of excessive gold costs. Nevertheless, this has unfavourable implications for the agricultural sector, particularly cocoa farming”, it revealed in an announcement on Ghana.
S&P additionally identified that Ghana’s fiscal efficiency ought to enhance following important slippage in 2024. “The fiscal deficit on a money foundation was largely in keeping with the revised finances, however the authorities accrued substantial arrears to suppliers and contractors, ensuing within the deficit on a dedication foundation being 3.7 proportion factors of Gross Home Product (GDP) bigger than budgeted, it added.
It additionally acknowledged that Ghana’s FX reserves buffers are being rebuilt from low ranges due to favorable present account dynamics. In 2024, the present account recorded its largest surplus on report, reaching $3.58 billion, or 4.4% of GDP. An improved commerce surplus and better remittance inflows fueled the rise. This helped usable FX reserves (gross FX reserves web of encumbered property) rise by $2.8 billion to nearly $4.6 billion.
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DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially characterize the views or coverage of Multimedia Group Restricted.
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