Ghana’s insurance industry recorded a substantial 22% growth in its investment assets in 2023, reaching a total value of GH₵10.5 billion, up from GH₵8.6 billion in 2022, according to the latest Bank of Ghana’s 2023 Financial Stability Review report.

Ghana’s Insurance industry seems to have weathered the storm of the COVID-19 pandemic and the domestic debt exchange programme.

The life insurance sub-sector led this growth, with investment assets valued at GH₵7.0 billion as of December 2023, compared to GH₵3.5 billion in the non-life sector.

Fixed-income assets remain a common investment strategy across life and non-life sectors.

However, the share of government securities in investment portfolios has seen a notable decline, possibly influenced by the effects of the Domestic Debt Exchange Programme (DDEP).

In the non-life insurance sector, holdings in government securities decreased by 13%, reducing their share from 38% in 2022 to 27% in 2023.

Fixed deposits in this sector now make up 23% of the investment portfolio, with listed securities and investment properties contributing 27% and 19%, respectively.

Similarly, the life insurance sector recorded a 9% reduction in government securities, dropping from 49% of its portfolio in 2022 to 40% in 2023.

This shift has been accompanied by a rise in other asset classes, with investments in properties growing to 23% and fixed deposits increasing by 8 percentage points to 21%.

These shifts indicate strategic diversification in response to market conditions, positioning the insurance industry for resilience and continued growth.

The growth in investment assets and diversification efforts signal the sector’s commitment to adapting to economic dynamics while providing financial stability for policyholders.

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Source: citinewsroom.com

The Ghana Shippers Authority (GSA) with support from the Ministry of Transport (MoT) has secured the release of six Ghanaian cargo trucks detained at the Dakola border in Burkina Faso.

In April of this year, the trucks were initially detained by Burkinabe Customs (Douanes) on suspicion of transporting prohibited goods from Ghana into Burkina Faso.

In June 2024, GSA intervened in the detention of twenty trucks carrying unwholesome cargo, flagged by Burkinabe authorities, after Joint Association of Port Transport Unions-Ghana’s (JAPTU-Ghana) efforts to resolve the issue proved unsuccessful.”

To resolve the issue, the Ghana Shippers’ Authority (GSA) and the Ministry of Transport held a series of stakeholder meetings at the Dakola border and Tema port, and collaborated with its Burkinabe counterpart, the Conseil Burkinabe Des Chargeurs (CBC), to secure the release of the detained trucks.

On 20th August 2024, Frederick Atogiyire, Northern Zonal Manager of the Ghana Shippers’ Authority (GSA), led a team to meet with Dr. Kassoum Traore, Director General of the Conseil Burkinabe Des Chargeurs (CBC), and his team to discuss the detained trucks.

Dr. Traore clarified that under Burkinabe law, unwholesome cargo can result in the confiscation of both the cargo and trucks.

He assured the team that progress was being made and that an out-of-court settlement had been reached with the shipper, paving the way for the trucks’ prompt release.

In a media briefing in Tamale, Frederick Atogiyire, Northern Zonal Manager of the Ghana Shippers’ Authority (GSA), announced that the Burkinabe Customs had efficiently processed the trucks for departure, enabling them to resume their journey to Ouagadougou on 25th August 2024, and subsequently return to Ghana on August 29, 2024.

Mr. Atogiyire expressed his appreciation for the Burkinabe Authorities’ concerted efforts in facilitating the trucks’ release.

Source: Citi Newsroom

The Ghanaian Cedi has crossed the GH¢16 mark against the US Dollar on the currency retail market.

A survey conducted by the Citi Business News team at various forex bureaux and banks in Accra revealed that the dollar is being sold at rates ranging from GH¢15.95 to GH¢16.20.

This development occurs as the International Monetary Fund (IMF) recently lifted restrictions on dollar auctions by the Bank of Ghana, following a significant increase in the country’s reserves under a US$3 billion economic recovery programme.

According to the July 2024 Summary of Financial and Economic Data from the Bank of Ghana, the Cedi depreciated by approximately 19.6% against the US Dollar on the interbank forex market as of July 2024. This rate of depreciation is slightly lower than the 21% decline observed in the retail market.

When the Citi Business News team visited some forex bureaux within the capital, some operators cited the current economic situation and the recent directive by the Bank of Ghana requiring Ghana cards as proof of identification from customers before transacting any service.

A forex bureau operator, Bernice Arthur, noted: “You know, now things are hard. So when the customers come, they would be begging that we should reduce the rates, you know, and when we do that, it will also affect the business. So we bargain and sometimes the customers will leave. Other times, too, we need to come down for them so that at least we can still be in business. ”

Meanwhile, another Forex bureau operator, Edward Lawson, linked the slow pace of his business to the hoarding of foreign currencies in anticipation of higher rates.

“Business has become slow because some are waiting for the dollar to rise before they come and change, which is very bad.”

Economic and Fixed Income Analyst Wilson Zilevu identified market sentiment as a key factor driving the high exchange rates.

“Speculative behaviour of foreign exchange dealers is all churning out today. Recently, the central bank also organized a seven-day option for foreign exchange dealers where they can lock in their prices.”

He urged the Bank of Ghana (BoG) to reassure industry players about the supply of forex in the market.

Source: citinewsroom.com