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Concerted effort needed to build a viablemonetary union – Dr Addison
Dr Ernest Addison, Governor, BoG
A concerted effort is required to help improve the region’s macroeconomic environment and place it on a stronger convergence path for a viable monetary union, Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has stated.
That, he said, would help facilitate the move by Economic Community of West African States (ECOWAS) for a single currency by 2027.
According to him, the assessment of the regional economies for 2022 showed that no member state satisfied the four primary convergence criteria, and same cannot be achieved in 2023.
The convergence criteria include a single-digit inflation, a fiscal deficit of not more than four per cent of Gross Domestic Product, and central bank deficit financing of not more than 10 per cent of previous year’s tax revenue.
ECOWAS initiated a move two decades ago for a single currency as pertained in Europe and the Authority of the ECOWAS Heads of State and government adopted a new roadmap for the launch of the ECO and a new Macroeconomic Convergence and Stability Pact, which should be met by member states by December 31, 2026.
COVID-19 pandemic disrupt¬ed the plan to launch the ECO in 2020.
Dr Addison made the call at the 43rd Ordinary Meeting of the Economic and Monetary Affairs Committee and the Operations and Administration Committee of the West African Monetary Agency.
The meeting, being convened by the Government of Ghana under the auspices of the Ministry of Finance and the Bank of Ghana, in collaboration with West African Monetary Agency (WAMA), the West African Africa Institute for Financial and Economic Management (WAIFEM), and the West African Monetary Institute (WAMI), formed part of the West African Monetary Zone meeting currently underway in Accra to review macroeconomic developments in the region.
Dr Addison, in a keynote address read on his behalf by the Director of Research of BoG, Dr Philip Abradu-Otoo, said the concern now was whether the 2026 deadline for achieving the convergence was still realistic in the face of the disruptive effects of the repeated shocks on the region.
“This, perhaps, calls for a readiness assessment for the launch of the ECO in 2027 as we move along,” he stated.
The Governor said in spite of the challenges, notable progress had been made in the roadmap for the implementation of the single currency objective, adding that “A lot more remained to be done”.
“While we strive to fulfil the arduous task of meeting the convergence criteria, we need to pay equal attention to other key areas of the roadmap,” Dr Addison stated.
He stressed the need for the unification of the payment and settlement systems and harmonisation of statistics in the region.
Dr Addison said the meeting would involve critical discussions across various sectors of the region’s economies and the im-plementation of roadmap of the single currency for the region.
The Governor of BoG entreated the delegates to participate actively and help broaden the policy discourse towards a viable monetary union.
The Director-General of WAMA, Momodou Bamba Saho, said there was the need for enhanced strategies and reforms to ensure all the member states of ECOWAS met the ECO Convergence Criteria.
“It is incumbent that our work here not only remains pertinent and useful to member states, but also serves as bedrock of stability and cohesion in these very complex times,” he stated.
BY KINGSLEY ASARE
Ghana’s gold and minerals sector is set for a major spotlight as Meetings. Co, in partnership with key industry stakeholders, announces the Mining & Minerals Convention 2025, scheduled from August 26-27, 2025, at the Kempinski Hotel Gold Coast City, Accra.
Held under the theme “Shaping the Future of Ghana’s Gold Industry,”‘ the Convention will convene government leaders, regulators, miners, refiners, investors, sustainability partners, innovators, and responsible mining, and global competitiveness,policy experts to explore strategies that position Ghana’s gold industry for long-term growth.
The two-day convention will feature presidential and ministerial keynote addresses, industry thought leadership, technical paper presentations, policy dialogues, fireside chats, exhibitions, and high-level networking sessions.
Convention delegates can anticipate a dynamic and insightful experience, marked by thought leadership from leading policymakers and regulators, in-depth discussions on key topics such as sustainability, ESG, digital gold, and responsible sourcing, as well as valuable opportunities to forge public-private partnerships and investment deals.
Moreover, the event will offer practical action points aimed at unlocking greater economic value for Ghana.
The 2025 edition will be supported by a strong coalition of strategic partners, including the Ministry of Lands and Natural Resources, the Minerals Commission, GoldBod, the Minerals Income and Investment Fund (MIIF), and the Ghana Extractive Industries Transparency Initiative (GHEITI).
The Minister for Finance Hon. Cassiel Ato Forson has disclosed that a sum of nine hundred and Eighty-Seven Million, Nine Hundred and Sixty-Five thousand and Seventy-Three Ghana Cedis (GHS987,965,073.00) from the Consolidated Fund into the District Assembly Common Fund Account, being the first quarter amount due to the DACF.
Furthermore, the Finance Minister informed the House that a total amount of Two Billion, Thirty- Three Million, Four Hundred and Sixty-Nine Thousand, Six Hundred and Seven Ghana Cedis (GHS2,033,469,607) has been disbursed to the National Health Insurance Fund.
While the Ghana Education Trust Fund has also received a total of Two Billion, Seven and Ten Million, Two Hundred and Twenty-Seven Ghana Cedis (GHS2,710,227,947.00) for the months January, February, March and April,2025.
The Finance Minister disclosed this in his statement to Parliament on the payments to statutory funds on the floor of the House.
In addition, he cautioned that the Administrator of the District Assembly Common Fund is required to ensure that 80% of this amount is transferred directly to the Assemblies without fail and expenditure returns submitted to the Ministry of Finance before subsequent releases will be made.
He added that Members are encouraged to monitor the utilization of these amounts sent to their respective Assemblies in line with the approved guidelines by Cabinet.
In his closing remark, Ato Forson said he’s going to take the concerns of the House seriously.
For his part, the Majority Leader, Mahama Ayariga made known the President’s prioritization of women in the country stating that President Mahama is “Pro-women”.
This is due to the fact that women are going to be the core beneficiaries from the expenditures going to be made by the MMDA’s, he added.
The Minority Leader Alexander Afenyo-Markin questioned the Finance Minister why road contractors have not been paid for more than five months. He said the Minister must not be applauded for since the allocation of these funds were long overdue.
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