John Boadu’s Guinness Ghana Issues Damning Verdict on Economy Ahead of 2020 Budget

Whatsup News has intercepted the latest Annual Report of Guinness Ghana Breweries Plc (GGBL) which has issued a damning verdict on the performance of the Ghanaian economy in 2018 to June 2019.

In the Annual report which is expected to be officially approved by shareholders when the biggest brewery in Ghana holds its annual at Golden Bean Hotel in Kumasi on November 13, 2019, it outlined how unfavourable some key macro-economic indicators had been in the country last year and the first half of this year.

GGBL says the dire economic conditions are characterised by rising utility and commodity prices; high non-food inflation; low growth rate and rapidly depreciating local currency.

This prescription by GGBL is despite glowing accolades being given the Ghanaian economy by appointees of the Akufo Addo administration. Incidentally, the Board of GGBL includes the General Secretary of the ruling party who happens to be a professional accountant.

 “During the financial year, 2018 GDP growth was 6.3%, albeit down from 8.4% GDP growth reported in 2017. Inflation remained below 10%, although we note that there continues to be a divergence between food inflation and non-food inflation. There has been a rising trajectory of non-food inflation, taking it up to an average 10.5%,” the summary of the GGBL annual report read.

It continues that the less-than-encouraging figures “has been driven by rising utility and commodity costs. In addition, Ghana Cedi depreciation has fuelled inflation on imported items.”

Ahead of Finance Minister Ken Ofori-Atta reading the 2020 Budget statement tomorrow, November 13, 2019, GGBL states that the year 2019 has seen an incredibly poor performance of the local currency. “In the fiscal year to June 2019, the Ghana Cedi to US Dollar rate cumulatively depreciated by 18%, compared with 2.4% depreciation over the comparative period ended June 2018. The Monetary Policy Committee kept the policy rate steady at 16% as of June 2019. The 91-day Treasury bill rate, which is the reference rate for our company loan, increased to 14.8% in June 2019 from 13.3% over the comparative period,” the alcoholic beverage giant stated. Notwithstanding the poor performance of the economy, GGBL has declared significant dividends to its shareholders to the total tune of GH¢ 9 million at GH¢ 0.0293 per share.