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Telecel Ghana to Review Data and Voice Prices Despite Complaints

Telecel Ghana

Telecel Ghana has announced a potential price adjustment for its voice and data services, effective August 12, 2024. This news came as a surprise to many subscribers, and some have been vocal about it.

The reason for the price raise has not yet been disclosed; however, in the past, price increases of this kind have frequently been associated with increased operating expenses, fluctuations in exchange rates, and rising energy prices.

Many customers have expressed their dissatisfaction on social media, where they have expressed their frustration over the announcement. On Twitter, one person expressed discontent by stating that “With all the recent online protests about internet pricing in this country, you’d think Telecel Ghana would be considerate in reviewing their new data packages. But no! They’ve made it ridiculously expensive! Why is it that this country seems to enjoy making people’s lives miserable?”

Most telecel users are very dissatisfied with the high cost of internet services, despite the National Communications Authority’s efforts to defend its management of the sector. This means individuals and businesses will need to reassess their communication budgets and consider how these changes could impact their operations. In some cases, negotiating with service providers for more favorable rates, especially for large-scale users, might be necessary.

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The Collapsed Tema Oil Refinery to Resume Operation in 3 Months: Minister of Energy Reveals

Tema Oil Refinery

The collapsed Tema Oil Refinery (TOR) is expected to restart operations within the next three months, according to plans as disclosed by Herbert Krapa, The minister of State at the Ministry of Energy.

In a Facebook post following his visit to the Tema Oil Refinery (TOR) and Sentuo Oil Refinery on Tuesday, July 23, 2024, the minister announced efforts to find a strategic partner to revitalize TOR. He emphasized that the goal is to bring TOR back to full operational capacity, and an agreed timeline for this resumption has been established in coordination with TOR management.

“Earlier today, I paid working visits to Tema Oil Refinery and Sentuo Oil Refinery. I am happy to announce that together with the management of TOR, we agreed on a three-month timeline for the resumption of the plant.

“I also announced the government’s plan to immediately revive TOR’s Testing Laboratory for revenue generation. I charged both TOR and Sentuo to see each other as partners and collaborate for the growth of both refineries,” Krapa added.

Tema Oil Refinery

In addition, he said, “There is no gain in saying TOR needs all our support and attention, and we all need to put our hands on deck. It is for these reasons that I chose TOR to be my first official visit to the institutions that work under the ministry. I don’t think it’s late in the day.”

The Tema Oil Refinery (TOR), led by Managing Director Kofi Tagoe Mocumbi, shut down a few years ago because of a lack of crude oil, which is a necessary raw material for refining. TOR was able to handle about 45,000 barrels of crude oil per day before it closed.

Oil sector participants have expressed disapproval of the refinery’s closure, blaming the nation’s high fuel prices in part on the dependence on imported fuel to replace domestic production.

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MTN Nigeria Losses ₦519.1 Billion in First Half of 2024

MTN nigeria

MTN Nigeria reported a ₦519.1 billion substantial loss after taxes for the first half of 2024. The losses were mostly caused by Nigeria’s difficult macroeconomic circumstances, which included record-high inflation and a declining value of the naira.

Despite the challenges faced, MTN Nigeria recorded a 32.6% increase in revenue, amounting to 1.5 trillion. 

Its unaudited statistics for the half-year ending June 2024 show that these losses were from the devaluation of liabilities denominated in foreign currencies, which were made worse by the naira’s fall from ₦907/ in December 2023 to ₦1,505/ in June 2024.

MTN, the largest corporation in Nigeria based on market value, reported that its revenue increased by 32.6% to ₦1.5 trillion in spite of the losses. Net FX losses of ₦887.7 billion, however, had a major adverse effect on the company’s financial performance.

Karl Toriola, CEO of MTN Nigeria, commented on the study and highlighted the challenging economic climate, pointing to the fact that the inflation rate averaged 32.8% for the first half of the year and reached 34.2% in June.

He continued by saying that if not for the forex losses, the corporation would have reported an after-tax profit of ₦102.3 billion.

Nigerian firms’ and telecom companies’ operating costs have increased substantially due to the country’s high rate of inflation and currency devaluation. Higher import costs for technology and services have resulted from these economic conditions, which has an impact on telecom operators’ entire cost structure.

Moreover, the profitability of large corporations has been negatively impacted by increased operating costs brought on by inflation and currency volatility, which has forced many of them to strike a balance between the challenge of offering consumers reasonable services and the requirement to maintain high-standard infrastructure.

While MTN Nigeria’s financial loss may have an immediate impact on dividend payments to shareholders, the company’s long-term profitability may be restored by revenue growth and strategic initiatives.

The corporation may also decide to change prices as a result of the economic challenges, but it will still work to strike a balance between affordability and sustainability.

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Ghana’s Inflation Rate Drops, Signaling Ease of Economic Crisis

Inflation: Ghana notes

For the fourth month in a row, Ghana’s consumer inflation has continued to see a steady reduction, dropping to 20.9% year-on-year in July.

On Wednesday, government statistician Samuel Kobina Annim revealed to members of the press that the drop is a result of a fall in both food and non-food inflation. The drop represents a 1.9 percentage point drop from June’s 22.8%, signalling a gradual easing of the economic pressures that intensified throughout 2023.

In July, food inflation stood at 21.5%, while non-food inflation was slightly lower at 20.5%. But the inflation rate for imported items was recorded at 15.6%, significantly lower than the 23.3% observed for locally produced goods.

This sustained decline in inflation, which began in April 2024, represents a steady flow of price growth. 

On a month-to-month basis, the pace of inflation growth also slowed, with a 2.1% increase from June to July 2024, down from 3.2% in May. This two-month trend suggests that inflation is reducing.

Inflation picture

Year-on-year data shows a significant reduction in food inflation, which is now approximately 2.4 times lower than in August 2023. However, food prices remain slightly higher than those of non-food items.

Also, locally produced goods experienced a higher inflation rate of 23.3%, compared to 15.6% for imported items.

A report by Bloomberg said, after an unexpected interest rate drop at the start of the year, Ghana’s central bank decided on maintaining the benchmark rate of 29%, as Ghana’s weak currency obscured the potential of rising consumer prices. 

Another report by MyJoyOnline, revealed that the Cedi depreciated by around 19.6% against the US dollar in the interbank currency market as of July 2024, according to the Bank of Ghana.

In spite of this, the steady drop in inflation over the past four months has brought some relief to consumers and businesses alike. 

Kejetia Market Disconnected From Power Grid Over Gh¢7m Debt

kejetia market

The Kejetia Market, has been disconnected from the power grid by the Electricity Company of Ghana (ECG) for their failure to pay outstanding debts of over GH¢7 million.

The power cut, which took effect on Monday, August 12, comes after numerous warnings to settle the arrears. 

Despite a previous agreement to clear the debt, ECG claims the market has defaulted on the payment plan, leading to the disconnection.

In April 2024, the kejetia market experienced a similar power outage, which was restored after management assured commitment to paying the debt.

A payment plan was drawn up, but ECG insists the market has failed to adhere to it.

The managing director, Edmond Kofi Duffuor, claims they have shown commitment to paying the debt, but ECG remains unsatisfied.

kejetia market

He said, “From a total of 9.7 million Ghana cedis as of June, we have paid about 1.7 million Ghana cedis, so why should we be in darkness when we are committed? I’m not paying any other service provider any money. No other person is receiving money from Kejetia Market apart from ECG.”

According to Asaase radio, Benjamin Obeng Antwi, an ECG spokesperson in the Ashanti West Region, said the market management has defaulted on payments for the months, and despite several attempts to engage with the kejetia market management and provide ample time for repayment, the company’s efforts were unsuccessful.”

“It was only last Friday that they came to pay GHC400,000, but they should have cleared their arrears by 25th July before starting to service their July bills,” Antwi explained. 

Traders at the Kejetia market are, however, calling on the Local Government Ministry to intervene and address the electricity supply issue to ensure the market’s smooth operation.

However this is not the first time this unfortunate situation has happened. In April this year, the market was disconnected for about a week and just like now, they had to rely on generators, which management of the market deem unsustainable.

P-Square Feud: Peter Okoye Denies Reporting Twin Brother Paul to EFCC

Peter and Paul OKoye: P-square

On Monday, Peter Okoye, now known as Mr. P, shared more insight about the family feud currently going on with the group P-square. In a statement on X, he dismissed claims by his twin, Paul, that he petitioned the Economic and Financial Crimes Commission (EFCC) to arrest him on multiple charges.

Peter emphasized that his focus was on uncovering the truth behind a secret company, Northside Music, allegedly owned by their eldest brother, Jude Okoye, and his wife, Ifeoma.

The statement read, “Before I tell you the whole story, here is what I need you all to understand.

“It’s always surprising to me when people say, ‘P-Square is always bringing their family matters into the public eye.’ Let me clarify this. P-Square is not just a family; it’s a public brand, but Peter, Paul, Jude, Anita, Ifeoma, Lola, and the rest of our family members are family, but P-Square is an entity that belongs to the public as much as it does to us.

“Our fans have played a significant role in our success, so they have the right to know what’s happening with their beloved brand, P-Square. That’s why it’s understandable when certain aspects of our lives are shared publicly.

“Now, let’s get straight to the point. I want to make it clear that I never reported my twin brother Paul to the EFCC. I know many of you were disappointed when Paul accused me of doing so.

“He mentioned that I wrote a petition against him, which he claimed made the EFCC ask him to provide a surety. This statement suggested that he was detained, which is not true.

“Peter, Paul, and Jude own a management company together called Northside Entertainment, which we use to manage all of P-Square’s affairs. One day, I discovered another company with a similar name, but this one was called Northside Music instead of Northside Entertainment.

“This surprised me, so I decided to investigate further, and guess what? To my shock, the founders and directors of this secret company were none other than Jude Okoye and his wife, Ifeoma Okoye, and the registered address was the family home of Jude’s wife.”

Peter mentioned that he had asked Paul many times about the company and missing royalties, but Paul denied knowledge of such information. 

He said, “I approached him multiple times—at least four different times—asking if he knew anything about this secret company and the whereabouts of some of P-Square’s royalties. Each time I met with him, he denied knowing anything about it.

“I want to set the record straight. I hereby challenge Paul or anyone else to show any petition that I, Peter Okoye, ever submitted against my twin brother Paul or that has Paul’s name on it.

“I am still writing this with so much shock because I gave clear instructions to my legal team, with a standing order, that under no circumstances should Paul be included in my petition.

“Their focus was to remain solely on the primary suspects, Jude Okoye and his wife, Ifeoma Okoye, since they were the directors of this secret company, Northside Music.”.
Paul’s recent interview about the EFCC incident contains a lot of lies.”

Peter’s side: How It Started

According to Peter, he discovered that millions of dollars and hundreds of Naira had been diverted from their company, Northside Entertainment, into the secret company’s account.

“The real story goes back to the shocking discovery I made, but what really got me very upset was finding out that for years, millions of dollars and hundreds of millions of naira were being secretly diverted into this secret company’s account, Northside Music, from our own company, Northside Entertainment.

“This was not just a minor issue; it was a massive betrayal that had been going on for several years,” he emphasized.

“Peter, Paul, and Jude own a management company together called Northside Entertainment, which we use to manage all of P-SQUARE’s affairs. One day, I discovered another company with a similar name, but this one was called Northside Music instead of Northside Entertainment.

“This surprised me, so I decided to investigate further, and guess what?To my shock, the founders and directors of this secret company were none other than Jude Okoye and his wife Ifeoma Okoye, and the registered address was the family home of Jude’s wife.

“Still in shock, I knew I had to talk to Paul about it. I approached him multiple times—at least four different times—asking if he knew anything about this secret company and the whereabouts of some of P-SQUARE’s royalties. Each time I met with him, he denied knowing anything about it.

According to Peter, Paul’s recent interview about the EFCC incident contains a lot of lies. This statement was made by Peter after he had earlier expressed frustration over Paul’s constant discrediting of his efforts in the group. The brothers are both currently pursuing solo careers as Rudeboy and Mr. P.

Nedco Loses GH¢ 3.7 Million To Illegal Connections

Nedco

The Northern Electricity Distribution Company (NEDCo) says they have incurred a loss of GH¢3.7 million due to illegal power connections in the Northern region.

Managing Director of NEDCo, Osman Ayuba, informed the Public Accounts Committee of Parliament on Monday, August 12, that efforts are underway to curb the menace and minimise further losses.

He said, “In the northern area alone, we have had about 627 summons that have been issued to these illegal connectors, and in the northern area alone, the number was 473. Those who were served in the northern area were 103. And NEDCo-wide, it was 173, so you can see that it is tilting towards the northern area.

Nedco

“And an estimated power loss or stolen power in the northern area was GH¢3.7 million. The whole NEDCO area was GH¢4.1 million.”

In detailing the situation, Ayuba noted that 627 summonses were issued to those involved in illegal connections, with 473 cases recorded in the Northern Region alone. Out of these, 103 individuals were served in the region, contributing significantly to the overall losses.

The total estimated loss from illegal connections across the entire NEDCO operational area was GH¢4.1 million, with the Northern Region accounting for the majority of the losses. However, following the issuance of summons to offenders, NEDCo has recovered GH¢1.5 million.

4.4-magnitude earthquake hits Los Angeles

earthquake:hollywood

On Monday afternoon, according to the U.S. Geological Survey, a 4.4-magnitude earthquake struck about 2.5 miles south of the Los Angeles neighborhood of Highland Park, a neighbourhood not far from the famous Hollywood sign and the Griffith Observatory, shaking homes and startling residents. 

It was reported at about 12:20 p.m. and felt throughout L.A. County in areas including Pasadena and Studio City. The United States Geological Survey (USGS) initially reported the earthquake as a 4.6-magnitude temblor, later updating it to a 4.4-magnitude temblor.

Recalling another quake in the area in June, which had an epicenter in South Pasadena, seismologist Dr. Lucy Jones said Monday’s earthquake was in “essentially the same location” as the one in June. 

The quake was felt in nearby cities Pasadena and Glendale, and all the way to the coastline in areas like Manhattan Beach and El Segundo. The USGS said there was no tsunami warning from the quake. Officials said they are monitoring for damage or injuries, but as of around 1:10 p.m., none had been reported.

Firefighters reported water gushing out of a broken pipe while looking through a building at Pasadena City Hall. While it is still not confirmed whether it was caused by the quake, seismologists at the California Institute of Technology, Caltech, said they felt shaking at the Pasadena campus. 

This quake comes in the aftermath of a 5.2-magnitude earthquake near Bakersfield last week. Last week’s quake rattled the Southern California region, with shaking felt throughout parts of Kern, Ventura, and Los Angeles counties. 

In the following two days, there were more than 400 tremors within 10 miles of the quake’s epicenter, which USC seismologist John Vidale said could all be considered aftershocks since that area doesn’t usually have much seismic activity.

For Monday’s earthquake, however, the USGS did not report aftershocks within an hour. 

Majority of Banks in Ghana Can Avoid Recapitalization- World Bank

Recapitalisation

According to the World Bank’s 8th Ghana Economic Update, more than half of Ghana’s 23 banks are in a strong position to avoid needing recapitalization. Over two-thirds of the required recapitalization target, which had been expected to be completed in three years, was successfully accomplished by the majority of banks within a year, according to the World Bank.

In order to strengthen the banking sector’s resilience and enable it to offer substantial support for the recovery of the real economy, the Bank of Ghana expects that these recapitalization operations will be completed early.

Recapitalization

The 8th Ghana Economic Update from the Bretton Woods institution highlighted that the banking sector is now stronger and better capitalised than during the DDEP, with increased profitability, though some emerging risks remain.

The Bank of Ghana further stated that those banks affected by the Domestic Debt Exchange Programme (DDEP) in 2023 are still following the Central Bank’s directives and implementing their approved capital restoration measures.

According to the Bretton Woods institution’s 8th Ghana Economic Update, the banking industry is now stronger and more capitalized than it was under the DDEP, with higher profitability, even though some emerging risks remain.

Notably, banks have experienced significant increases in profitability; in December 2023, return-on-equity after taxes increased to 34.2% from -34.4%. In a similar vein, return on assets increased throughout that time from -3.8% to 5.4%.

The increased regulatory norm of 10.0% was easily by the Capital Adequacy Ratio (CAR) of 13.9% in December 2023, owing to regulatory relief that prevented losses from the domestic debt restructure from being completely recognized.

However, the non-performing loan (NPL) ratio for the sector jumped from 16.0% in December 2022 to 20.7% in December 2023 and then to 25.7% in April 2024.

The rise is mostly attributed to increased credit risk, which is a result of the macroeconomic crisis of 2022’s delayed repercussions.

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Gold For Oil Policy Still on Course—Bank of Ghana

Gold for oil policy

According to the Bank of Ghana (BoG), the government’s Gold for Oil Policy is progressing as planned. The government started the program to deal with Ghana’s running out foreign exchange reserves and the strong demand for dollars from oil importers, which was pushing down the Cedi and increasing living expenses.

During an appearance before the Public Accounts Committee of Parliament on Monday, August 12, the First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari, provided an update on the policy.

Gold For Oil Policy

First Deputy Governor of the Bank of Ghana, Dr. Maxwell Opoku-Afari, gave an update on the policy on Monday, August 12, while testifying before the Public Accounts Committee of Parliament.

“The gold for oil programme is on track and the reason why the risk for the separate account is somehow mitigated is that the Central Bank’s participation in terms of financial contribution to the gold for oil program is capped and nothing more is being added to that” he said 

According to the government, the purpose of the Gold for Oil program is to enable direct barter between the government and the Central Bank using gold that the Central Bank has bought to pay for imported oil goods.

“So it is the receivables that are coming from within that cap amount that have been used to continue to finance the gold for oil programme.” he added

The government’s G40 Programme Framework, dated February 3, 2023, outlines the strategy and states that there are two ways to pay for the oil supply: barter trading or using FX earned by selling gold to a broker.

The Bank of Ghana (BoG) will supply suppliers who are prepared to accept gold in direct exchange for petroleum products with the same amount of gold under the barter trade.

The BoG carries out a gold supply agreement through the Broker Channel, selling gold to a gold broker who offers FX cover to pay for petroleum products.

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