
<p>LONDON/JOHANNESBURG (Reuters) &#8211; Ghana, Africa’s largest gold producer, is planning an up to $500 million listing of its gold royalty fund in London in October, though the deal could still run into political opposition, three sources familiar with the matter told Reuters.</p>



<p>Agyapa Royalties, a government-backed fund that holds equity interests including mining royalties in the state&#8217;s gold assets, has hired Bank of America&nbsp;<a href="https://www.reuters.com/companies/BAC.N">BAC.N</a>&nbsp;and JPMorgan&nbsp;<a href="https://www.reuters.com/companies/JPM.N">JPM.N</a>&nbsp;to pursue an initial public offering (IPO) on the London Stock Exchange this year, the sources said.</p>



<p>Royalties are payments that give the owner the right to receive a percentage of production from a mining operation, or retain a stake in them.</p>



<p>Ghana wants to take advantage of the precious metal’s strong performance this year to raise $400 million-$500 million from the IPO, the sources said. The fund’s shares will also be listed on the Ghanaian Stock Exchange.</p>



<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="800" height="600" src="https://www.cnbcafrica.com/wp-content/uploads/2020/06/shutterstock_270259862.jpg" alt="" class="wp-image-374206" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2020/06/shutterstock_270259862.jpg 800w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/shutterstock_270259862-300x225.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/shutterstock_270259862-768x576.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/shutterstock_270259862-696x522.jpg 696w, https://cms.cnbcafrica.com/wp-content/uploads/2020/06/shutterstock_270259862-600x450.jpg 600w" sizes="auto, (max-width: 800px) 100vw, 800px" /><figcaption>Ghana. Shutterstock </figcaption></figure>



<p>Yet, the listing could be derailed or pushed back because of resistance from Ghana’s main opposition party ahead of a December general election, the sources said.</p>



<p>“It’s genuinely 50-50 at the moment, but if the local politics works out, the deal is ready to go this year,” said one of the sources.</p>



<p>Ghana’s finance ministry was not immediately reachable due to a public holiday. JP Morgan declined to comment while Bank of America did not immediately respond to a request for comment.</p>



<p>If it goes ahead, the listing would benefit from a surge in gold prices as the COVID-19 pandemic pushed investors into safe-haven investments.</p>



<p></p>



<p>While the spot gold price has come off a record high hit in August, it is still up a whopping 27% so far this year at $1,931 an ounce&nbsp;<a href="https://www.reuters.com/quote/XAUUSD">XAU=</a>.</p>



<p>Canadian companies Yamana Gold and Wheaton Precious Metals have both signalled their intention to add a London listing this year.</p>



<p>For London investors, it is an opportunity to increase gold exposure and potentially fill the gap left by South Africa’s Randgold, which delisted in 2018.</p>



<p>The deal would also come at a time when the market for IPOs has come roaring back after a dismal first half of the year, with The Hut Group&nbsp;<a href="https://www.reuters.com/companies/THG.L">THG.L</a>&nbsp;sealing a 5.4 billion pound ($6.99 billion) float last week.</p>


gold-is-money-2430051_1280

Ghana plans $500 million London listing of gold royalty fund: sources

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6190976030001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script><br />
<amp-brightcove data-account="1571595826001" data-video-id="6190976030001" data-player-id="default" layout="responsive" width="16" height="9"><br />
</amp-brightcove></p>
<p>Ghana and Cote d&#8217;Ivoire plan to raise the price farmers get paid for cocoa by about 21 per cent. Both countries account for over 60 per cent of the global production of the cocoa bean. Chike Nwagwu, CEO of Novus Agro, joins CNBC Africa’s Esther Awoniyi for more.</p>


Ghana

Ghana, Cote d’Ivoire plan 21% hike on farm gate cocoa prices

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6190606039001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script><br />
<amp-brightcove data-account="1571595826001" data-video-id="6190606039001" data-player-id="default" layout="responsive" width="16" height="9"><br />
</amp-brightcove></p>
<p>Mozambique’s headline inflation remained unchanged at 2.8 per cent year on year in August and S&#038;P Global Ratings downgraded Ghana’s long-term foreign and local currency sovereign ratings from B to B- as  the COVID-19 pandemic will exacerbate the country’s fiscal challenges, with government debt increasing to over 70 per cent of GDP in 2020. Ridle Markus, Africa Strategist, Absa Corporate and Investment Banking joins CNBC Africa for more.</p>


S&P downgrades Ghana’s foreign & local currency to B-


<p>ACCRA (Reuters) &#8211; Ghana will reopen air borders to international travel as of Sept. 1 after closing them in March to limit the spread of the coronavirus, President Nana Akufo-Addo said in a speech to the nation on Sunday.</p>



<p>Land and sea borders will remain closed, he said.</p>


640px-Flag_of_Ghana.svg

Ghana to reopen international air borders from Sept. 1, says president

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6182116214001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>Ghana launched and handed over the Secretariat of the African Continental Free Trade Area to the African Union at a time when the Ghana Union of Traders Association has asked Nigerians in retail trading to close shops in Ghana. Obiora Madu, CEO of Multimix Group joins CNBC Africa to discuss ways to address Africa&#8217;s regional integration challenges.</p>


How to address regional integration challenges in West Africa

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6182108991001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>The Nigerian government says it will take urgent steps to address the closure of retail businesses owned by its citizens residing in Ghana.</p>


How will Nigeria address closure of Nigerian retail businesses in Ghana?

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6181841916001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>Traders say most banks in Ghana are attractively valued as most are trading below their book values and provides a good entry point for investors.</p>


Databank Group: Where to find investment opportunities in Ghana’s banking sector


<p>ACCRA (Reuters) &#8211; Ghana expects cocoa output of around 900,000 tonnes in the 2020/2021 season, up 5.8% from the forecast for 2019/2020, the country’s Cocoa Board (COCOBOD) said, according to a parliamentary report published on Wednesday.</p>



<p>Ghana is the world’s second-biggest cocoa producer. Its growing season runs from October to September.</p>



<p>The report also said the COCOBOD planned to raise $1.3 billion in syndicated loans to fund cocoa purchases during 2020/21 from a consortium of banks and financial institutions, with the government as guarantor.</p>



<p>The loan will carry annual interest of one month Libor plus 1.75%, a commitment fee of 0.62% per year and an upfront flat fee of 1.25%.</p>


cocoa

Ghana expects 5.8% increase in cocoa output in 2020/2021

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6180168255001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>Ghana&#8217;s total public debt stock rose to 67 per cent of GDP as at the end of June this year compared with 62.4 per cent of GDP as at the end of December 2019.</p>


COVID-19: How Ghana plans to fund its widening budget deficit


<p>ACCRA (Reuters) &#8211; Ghana’s central bank on Monday maintained its policy rate at 14.5%, citing a need for macro-economic stability despite the slowdown brought on by the coronavirus pandemic.</p>



<p>Ghana’s economy, which relies heavily on natural resources like cocoa, gold and oil, is expected to grow in 2020 at its slowest rate in nearly 40 years, leading the government last week to announce a $17.4 billion support programme. [nL5N2EU61X]</p>



<p>Bank of Ghana Governor Ernest Addison described mixed economic indicators during a monthly news conference. He noted a gradual rebound in credit growth and “reassuring results” from stress tests conducted on banks this month.</p>



<p>However, he said the budget deficit for the first half of 2020 stood at 6.3% compared with the 3% target and expressed concern about rising inflation.</p>


currency-note-paper-money

Ghana central bank keeps benchmark policy rate steady at 14.5%

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6175549502001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>West African leaders have begun a virtual extraordinary summit to negotiate an end to the deepening political crisis in Mali. This comes after presidents from Nigeria, Ivory Coast, Senegal, Ghana and Niger held talks on Thursday last week that ended in a stalemate. Onyekachi Adekoya, Managing Director of PR24 Nigeria joins CNBC Africa for more.</p>


ECOWAS holds extraordinary summit on Mali’s political crisis

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6175495610001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>Ahead of Ghana’s MPC rate decision today, the Bank of Ghana’s economic activity indicator has shown a fall of 10.6 per cent in May, whilst consumer and business confidence levels have rebounded amid their sharp declines in April. Ridle Markus, Africa Strategist, Absa Corporate and Investment Banking joins CNBC Africa for more.</p>


COVID-19: Ghana records 10.6% y/y decline in economic activity in May

<div style="max-width: 700px;">
  <video-js
    data-account="1571595826001"
    data-player="c0AOssA7"
    data-video-id="6174702210001"
    data-embed="default"
    controls=""
    data-application-id=""
    class="vjs-fluid"></video-js>
</div>
<p><script src="//players.brightcove.net/1571595826001/c0AOssA7_default/index.min.js">
</script></p>
<p>A one-day summit by West African leaders from Nigeria, Ghana, Cote d’Ivoire, Senegal and the Niger Republic ended in a stalemate after the leaders met with Mali’s President Ibrahim Boubacar Keita and Muslim Cleric Mahmoud Dicko and other opposition leaders to negotiate an end to the political crisis in the country. Protesters took to the street on the 5th of June demanding a better economy, an end to corruption, a stronger fight against jihadist groups and irregularities in the local election results. Dennis Amachree, CEO of Zoomlens Security Solutions joins CNBC Africa for more.</p>


Mali political crisis: No deal reached after Five ECOWAS leaders intervene

Mali political crisis: No deal reached after five ECOWAS leaders intervene


<p>LONDON/ABIDJAN (Reuters) &#8211; The steepest dive in cocoa demand in a decade has thrown into jeopardy a plan by top producers Ivory Coast and Ghana to guarantee some two million farmers a living wage, sources within the countries’ regulators said.</p>



<p>Leading chocolate-makers agreed to a proposal from the African nations last year to charge the industry a premium for cocoa beans and guarantee a minimum income to farmers who earn just $1 a day.</p>



<p>But the scheme, set to come into effect this October, was based on expectations that international cocoa prices would stay within average ranges. Instead, the impact of the COVID-19 pandemic on demand has driven them to their lowest in nearly two years and they are expected to stay weak for at least a year, the industry says.</p>



<p>“It is not certain we will be able to guarantee farmers the amount originally expected,” a source at Ivory Coast’s cocoa regulator the Coffee and Cocoa Council (CCC), which sets the official farmer price each season, told Reuters.</p>



<p>The source, who declined to be named because he is not authorised to speak to the press, said the country’s cocoa sales for next season were some 30% below average levels for the time of year.</p>



<p>The CCC did not respond to Reuters’ requests for comment.</p>



<p>A spokesman for the Ghana Cocoa Board (Cocobod) said in a statement sent via WhatsApp the process of determining the price cocoa farmers will get was ongoing. He added, however, farmers would still get a better price than without any premium.</p>



<h3 class="wp-block-heading">MINIMUM WAGE ERODED</h3>



<p>Market weakness could appear a good thing for chocolate consumers offered discounts on the high street, but for farmers it could mean hunger.</p>



<p>Already the closure of retail outlets during lockdowns to try to contain the novel coronavirus stifled impulse-buying of chocolate, significantly denting demand.</p>



<p>Now widespread economic hardship is expected to limit sales just as the industry anticipates production will rebound when the new cocoa season starts, generating a large global surplus.</p>



<p>A series of meetings between representatives of the cocoa industry, Ivory Coast and Ghana last year agreed a premium of $400 a tonne for all sales for the upcoming 2020-21 season, including any production sold ahead of the season’s start in October.</p>



<p>Because the market has suffered a sustained fall with prices now below $2,000 a tonne, even with the premium added, the earnings of Ivory Coast and Ghanaian farmers will fall below the guaranteed minimum wage.</p>



<p>Four sources in total at Ivory Coast and Ghana’s cocoa regulators, all asking not to be named, predicted the income guarantee would be missed by around $120 a tonne. That would mean farmers get some increase in revenue, but far short of expectations.</p>



<p>Calculations made by Ivory Coast and Ghana when the new pricing plan was agreed a year ago showed a $400 premium would allow them to guarantee farmers 70% of a minimum $2,600 a tonne target price from 2020/21 onwards, or about 20% more than they currently receive.</p>



<p>Farmers in Ivory Coast and Ghana said they had yet to be told they would receive any less and were counting on an increase for the upcoming season.</p>



<p>“Life is hard for us cocoa farmers and if the price is not good, we cannot live well. Everything is expensive and you don’t earn enough to live like men. Here in the village we survive,” Alidou Konate, a farmer with 7 hectares in Duekoue, in western Ivory Coast told Reuters.</p>



<p>Francis Yeboah, who has 3 acres in the Ashanti region of Ghana said all farmers had “put a lot of hope in this new pricing system” and it was up to industry and the government to make up the difference in the event of any shortfall.</p>



<p>“Even if the coronavirus has an impact on the market and it lowers the price, it is up to the government to find a way to maintain a high price for the poor cocoa farmers that we are. It’s not up to us to make a sacrifice but to the chocolate-makers and the government,” he said.</p>



<h3 class="wp-block-heading">TRADE ALSO ANXIOUS</h3>



<p>Figures from the industry offer little comfort.</p>



<p>An internal report from Barry Callebaut, seen by Reuters, shows the world’s biggest chocolate maker expects a global surplus of 317,000 tonnes in 2020/21, the biggest since 2016/17, when excess supplies kept world prices below $2,000 a tonne for more than a year.</p>



<p>Barry Callebaut also adjusted a previously expected 85,000 tonne deficit for 2019/20 to a 6,000 tonne surplus.</p>



<p>The company’s sales dropped 14.3% in the April to June quarter. It expects a gradual rebound over the next three years, but it will not be enough to balance the market in 2020/21.</p>



<p>It is not just farmers who will suffer. Some traders fear for their livelihoods.</p>



<p>“I’m concentrating my efforts on saving my job. Our business is getting impacted. Small trade houses will probably go bankrupt this year,” the head of cocoa trading at a global commodities house said, also asking not to be named.</p>



<p>($1 = 0.7965 pounds)</p>


Cocoa_farmer_David_Kebu_Jnr_holding_the_finished_product,_dried_cocoa_beans_ready_for_export._(10687070725)

Pact to aid poor cocoa farmers in peril as COVID-19 hits demand

REPETITION – HIGHER RESOLUTIONSouth Afr

WEEKEND READ: Alas 2010, I knew it well – what has happened to the world since that night of tears, joy and skullduggery?


<p>ACCRA (Reuters) &#8211; Ghana’s President Nana Akufo-Addo will self-isolate for 14 days on the advice of doctors after a person in his close circle tested positive for coronavirus, the government said in a statement late on Saturday.</p>



<p>“He has, as at today, tested negative, but has elected to take this measure out of the abundance of caution,” the statement said, adding that the president will continue to work during the period, in compliance with COVID-19 safety protocols.</p>



<p>The statement did not say if the close person was a staff or family member.</p>



<p>Ghana has recorded 19,388 coronavirus cases, one of the highest number of cases in sub-Saharan Africa, with 117 deaths.</p>



<p>The West African nation’s deputy trade and industry minister Carlos Kingsley Ahenkorah resigned on Friday for violating coronavirus self-isolation measures after he tested positive for the virus.</p>


gettyimages-1186223719-594×594

Ghana’s president self-isolates after close person tests positive for coronavirus


<p>ACCRA (Reuters) &#8211; Ghana’s deputy trade and industry minister Carlos Kingsley Ahenkorah has resigned for violating coronavirus self-isolation measures after testing positive for the virus, President Nana Akufo-Addo said in a statement on Friday.</p>



<p>“This follows the admission by the deputy minister of his breach of the COVID-19 protocols, when, as a person certified to be positive of the virus, he visited a registration centre in his constituency before the period of self-isolation was complete,” the statement said.</p>



<p>The West African nation has recorded one of the highest number of corona virus cases in the continent since the outbreak at 18,134, with 117 deaths. Last month, Health Minister Kwaku Agyeman Manu tested positive for the virus.</p>


Ghana

Ghana plans $500 million London listing of gold royalty fund: sources

Ghana, Cote d’Ivoire plan 21% hike on farm gate cocoa prices

S&P downgrades Ghana’s foreign & local currency to B-

Ghana to reopen international air borders from Sept. 1, says president

How to address regional integration challenges in West Africa

How will Nigeria address closure of Nigerian retail businesses in Ghana?

Databank Group: Where to find investment opportunities in Ghana’s banking sector

Ghana expects 5.8% increase in cocoa output in 2020/2021

COVID-19: How Ghana plans to fund its widening budget deficit

Ghana central bank keeps benchmark policy rate steady at 14.5%

ECOWAS holds extraordinary summit on Mali’s political crisis

COVID-19: Ghana records 10.6% y/y decline in economic activity in May

Mali political crisis: No deal reached after five ECOWAS leaders intervene

Pact to aid poor cocoa farmers in peril as COVID-19 hits demand

WEEKEND READ: Alas 2010, I knew it well – what has happened to the world since that night of tears, joy and skullduggery?

Ghana’s president self-isolates after close person tests positive for coronavirus

Ghana minister resigns after breaching COVID-19 measures

News Tips

Advertise With Us

Ghana

Ghana plans $500 million London listing of gold royalty fund: sources

Ghana, Cote d’Ivoire plan 21% hike on farm gate cocoa prices

S&P downgrades Ghana’s foreign & local currency to B-

Ghana to reopen international air borders from Sept. 1, says president

How to address regional integration challenges in West Africa

How will Nigeria address closure of Nigerian retail businesses in Ghana?

Databank Group: Where to find investment opportunities in Ghana’s banking sector

Ghana expects 5.8% increase in cocoa output in 2020/2021

COVID-19: How Ghana plans to fund its widening budget deficit

Ghana central bank keeps benchmark policy rate steady at 14.5%

ECOWAS holds extraordinary summit on Mali’s political crisis

COVID-19: Ghana records 10.6% y/y decline in economic activity in May

Mali political crisis: No deal reached after five ECOWAS leaders intervene

Pact to aid poor cocoa farmers in peril as COVID-19 hits demand

WEEKEND READ: Alas 2010, I knew it well – what has happened to the world since that night of tears, joy and skullduggery?

Ghana’s president self-isolates after close person tests positive for coronavirus

Ghana minister resigns after breaching COVID-19 measures

News Tips

Advertise With Us

Newsletters