Viewpoint of an international writer on Akufo Addo's government

The current Ghanaian leader, Nana Akufo Addo [QUOTE]

"As angry spectators criticizing football players during a match, many of us are unhappy with the government of Akufo Addo, but as mentioned in one of my articles, One of the best ways to find out if the current Ghanaian government is doing well or not, is to read other foreign newspapers. The article below on the economy from Ghana under Nana Akufo Addo was written by an Italian writer, Giambattista Pepi.After reading it, I did the translation. "The source: https://bit.ly/2X1fCZE

Ghana has undoubtedly gone through a complicated period in recent years, with an economy facing a currency crisis, double-digit inflation, very high interest rates and growing indebtedness.

However, today, Ghana's growth is picking up and the economy has entered a transition phase.

We have recently been to the country and have seen many positive developments. The International Monetary Fund expects GDP growth in Ghana to reach 8.6 percent in 2018, well above the 3.4 percent forecast for the rest of the sub-Saharan region.

Ghana is the second largest economy in West Africa, driven by exports of oil, gold, cocoa and timber. The recent increase in oil prices and production are the main drivers of improved prospects, while the downward trend in inflation has led to a recovery in domestic demand.

Tullow Oil, one of our oil and gas funds, was one of the main beneficiaries of this context, increasing production on the TEN Field site off the coast of Ghana. The stable political situation has also helped to improve the prospects for the country.

The government of President Nana Akufo-Addo, who has been in power since January 2017, has made considerable progress in reducing public spending and achieving budgetary targets.

Maintaining fiscal discipline will be vitally important for the reversal of the situation in Ghana, especially given its debt-to-GDP ratio of about 70 percent and the likelihood of the IMF completing its program in the country. December.

Ghanaian banks have encountered difficulties with badet quality, and the loan portfolio has also been influenced by lower oil prices and exposure to some public companies in the energy sector. who have a lot of difficulties.

The Bank of Ghana has significantly increased the capital requirements for local institutions from C $ 125 million to about $ 400 million (about $ 100 million), with the aim of triggering a consolidation of the sector by reducing the number of banks in the country 34 to about 24.

In addition, credit expansion in the private sector, controlled by annual loan growth, increased to 5%. The two banks we met during our last trip to the country aim for a level between 10% and 20% for 2018.

Standard Chartered Ghana has expressed optimism about the prospects for fundamentalism in Ghana and expects this to lead to higher ROE levels. This bank has the highest nonperforming loan (NPL) ratio in the industry at 45% compared to an average of 21%, but debt coverage ratios are strong.

The limited liquidity and the price / book value ratio (P / B) are more limited, following the sharp rise in share prices in 2017. Instead, EcoBank Ghana has adopted a more proactive approach to badet quality and has reduced its own ratio of non-performing loans to 12%.

Improved fundamentals and a strong management team make this an interesting opportunity. In conclusion, we returned from our trip to Ghana with more optimism about the country's up and down economic development.