Finance Students & Associates-FINSA (UGBS)♨
                🇬🇭12th March, 2019
                ⏰6:00pm

BUSINESS SPACE📈

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📡 Ghana to meet investors this week to test Eurobond Demand

West Africa's second largest economy, Ghana will meet investors this week to gauge appetite for a proposed sale of as much as $3bn in Eurobonds, according to two people familiar with the matter. They said that the officials will organize meetings in Boston, New York and London from Wednesday. If the feedback from the meeting is favorable, it may lead to an immediate issuance, but the ministry will return at a later date if price demands are too high, they added. The country needs $2bn in foreign currency debt to help finance its 2019 budget and will take an additional $1bn if loans or securities are secured at lower rates than it's paying for existing liabilities.

📡 Price of pre-mix fuel increases...as middlemen take over

The price of pre-mix fuel has increased by some 30% in and around Tema, as middlemen buy the commodity in large quantities, create artificial shortage, and then resell the essential commodity to fishermen at a higher price. The commodity which used to be sold at GH¢7.50 per gallon is now sold by middlemen for GH¢10.00 a gallon. The challenge with middlemen is further compounded by the proliferation of various pre-mix committees in the area. From a reasonable pre-mix committee of two, there are now about 10 committees in the area. Fishermen have also blamed the expansion project at the Tema harbour for making them spend so much on fuel. Previously, 5litres of pre-mix fuel was enough to journey from Tema to Nungua and Teshie for fishing, but they now require 20litres to travel the same distance.

📡 Govt announces reforms to improve 'ease of doing business' ranking

Vice President Dr. Mahamadu Bawumia has outlined various reforms being undertaken to see Ghana improve in the next ease of doing business ranking this year. He said that he is positive such action will improve the economic situation in the country. Some of the reforms include TIN Number Acquisition, Launch of Mobile Application and online platform for the ease of filing tax returns, implementation of electronic Justice System among others. According to the latest World Bank annual ratings, Ghana ranked 114 among 190 economies of doing business in 2018. This is four points up from the 120th position in 2017.

📡 Vodafone Ghana to roll out 4G services next month

The Telecommunications company is preparing to roll out it's 4G services next month after securing the spectrum for $30m last year. Vodafone will be the second Telecommunications company to operate on the 4G spectrum after MTN which secured the LTE license in 2015 at $67.5m. The sale of the Spectrum is in line with Section 58 of Electronic Communications Act of 2008, Act 775 on Spectrum Management which allows the NCA's to assign the frequency. Vodafone are in the final stages of it's integration processes to commence operations on the 4G Spectrum.

📡 Govt to build four Shea butter processing factories in 2019

Government in collaboration with the African Development Bank and the Rural Enterprise Programme will establish four new modern Shea butter processing facilities in the country before end of 2019. This was disclosed by the Ministry of Trade and industry. The initiative falls under the government's one district one factory programme. Speaking at the 12th International Shea Conference in Accra, Minister for Trade and Industry, Alan Kyeremanteng said government will continue to roll out initiatives to make Ghana a leader in Shea production. Meanwhile, the U.S. Ambassador to Ghana, Stephanie Sullivan had assured of the US' commitment to increase investments into Ghana's Shea industry.

|Policy Rate in Ghana - 16.0%|

|Inflation Rate in Ghana - 9.00%|

|Treasury bills rates|
Period        Discount Rates         Interest Rates
91 - Day           14.1855%                  14.7071%
182 - Day         14.0810%                  15.1474%
2-Yr Note                                            19.7500%

Foreign News💤

⚖ Access Bank set to become Africa's largest bank in 2019

Access Bank Plc, parent company of Access Bank Ghana, which is one of the leading retail banks in Africa by customers when it completes it's merger and integration processes with Diamond Bank in Nigeria. The newly merged will together have an overwhelming customer base of more than 29 million customers - the largest in Nigeria, which is Africa's largest on the African continent. The deal was approved on March 5, 2019 when shareholders of Access Bank and Diamond Bank endorsed the merger scheme at the Extraordinary General Meeting held separately by both banks.

⚖ Nigeria's Access Bank signs $162m loan to boost capital

Access Bank Plc, which is in the process of taking over rival Diamond Bank, have signed an agreement for a $162m loan to boost it's capital and fund lending operations. The loan is being arranged by the Dutch Development Bank, FMO while financial institutions including Belgian Investment Co. for Developing Countries, Blue Orchard Microfinance Fund, Finnish Fund for Industrial Cooperation Ltd. and Ecumenical Development Cooperative Society are providing the financing. Access Bank said in a statement.

⚖ Benin readies for it's first foray into foreign Bond markets

The West African country with a GDP of about $10bn is readying a series of meetings with would-be takers for a first ever sale of Eurobonds, according to a person familiar with the matter. Citigroup Inc., The person said that Natixis SA and Societe Generale SA have been hired to organize the meetings which would take place in Europe and the U.S.  from Tuesday. The however asked not to be identified because the matter isn't yet public.

⚖ China's car sales have fallen for 8 straight months. It may get worse before getting better

China's auto sales fell nearly 14% in February making it the eight straight month of year-on-year declines. China is the world's largest vehicle market and auto sales is a key barometer of the health of consumer sentiment and the broader economy. As part of efforts to boost it's slowing economy, China announced last week a set of measures to stimulate growth. Those included tax cuts that could help boost demand for autos, but the effect is likely to take time, analysts said.

|Daily Interbank FX Rates|

Currency           Pairs Code    Buying    Selling
U.S Dollar              USDGHS       5.2326      5.2378
Pound Sterling        BPGHS       6.8458      6.8547
Swiss Franc           CHFGHS      5.1831      5.1890
Canadian Dollar   CADGHS 3.9041      3.9085
Euro                         EURGHS      5.8828      5.8874
Chinese Reminbi     CNYGHS    ,0.7780      0.7785

🌀|Sources|
www.citibusinessnews.com
www.bog.gov.gh
www.myjoyonline.com
www.bloomberg.com
www.cnbc.com 
www.wikipedia.com
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Term of the day📚

🤔 Eurobond

A eurobond is denominated in a currency other than the home currency of the country or market in which it is issued. These bonds are frequently grouped together by the currency in which they are denominated, such as eurodollar or euroyen bonds. Issuance is usually handled by an international syndicate of financial institutions on behalf of the borrower, one of which may underwrite the bond, thus guaranteeing purchase of the entire issue.

🤔 Can you name some types of eurobonds?
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📍Compiled & edited by:
Philip Elike Gagah
Agnes Boatemaa Appiadu