₦airaland Forum

Folks have talked of Kenya's debt here many at times,little did I know that people take Eurobonds not for development but for cpnsumption at nearly 10% price points.

[b]Bolgatanga Central Member of Parliament, Isaac Adongo has revealed that Ghana borrows $10.6 billion yearly to pay for the consumption of goods and services.

According to Mr. Adongo, it is a worrying thing that should be addressed else the Akufo-Addo-led government will plunge the country into doom leaving huge debts behind for the future generation.

Speaking on the floor of Parliament on Thursday after the Finance Minister addressed legislators on the depreciation of the cedi and the Eurobond, the Bolga Central MP said government shouldn’t have gone for the Eurobond in the first place because it is a complete waste of time since it’s not utilised well.

The NDC MP explained that it is appalling to know the current government only borrows to pay for goods and services.

“What is worrying is the fact that there’s nothing now left to pay for goods and services and we go to borrow to pay for goods and services. So if we take goods and services together, you take the difference in wages and salaries, we are borrowing 10.6 billion every year to pay for our consumption...We are leaving a debt for our children without an asset and you’re still celebrating it,” he quizzed.

“It is so serious that if we look at the utilisation of the last two Eurobonds, it is better we didn’t go to the Eurobond in 2017 because if this is what we are going to be doing then this country is doomed...You go to the capital market to borrow and spend on consumption. 630 million of our Eurobond of 750 million was spent on consumption and the Minister of Finance should be worried,” he warned.[/b]

https://www.ghanaweb.com/GhanaHomePage/business/Ghana-borrows-10-6bn-to-pay-for-consumption-Adongo-734101

Why doesn't your current president continue with that advocacy pushed by Gadaffi if it be that you are true Pan Africanists. I didn't like the way Gaddafi was bullied by the West but that doesn't mean that he was all clean and clean. Remind me,what was the end of him?

vaxx2:
When Ghana was romancing the non allinged nation , you guys are still a British stooge. gaddafi was promoting the idealogy that was spread by kwame inkrumah to have a single state instead of been divided . That land occupation in South Africa and east Africa is not allowed in west africa, since our goverment fought the British to their throat. we aren't timid to be occupied by Asian who are presently demanding to be recognised as a special tribe in your country .



our independence is won not gifted

Oh boy! And who is seeking for Ghana's validation or recognition? You folks plagiarised the picture of Nairobi on your policy state document!

https://www.ghanaweb.com/GhanaHomePage/NewsArchive/Ghana-apologises-for-plagiarising-photo-of-Kenya-skyline-751074#

psychologygh:
you know you never answered a single of my point or at least address any of them other than to type gibberish. And about government sponsoring young people abroad before and after colonial rule was far rampant also in then Gold Coast and now Ghana. Almost all our leaders now and then including Nkrumah himself were all beneficiaries of this nation sponsored scholarship schemes.Most of them went, studied and came back to help the nation.When Ghana was a nation and fought for independence, Kenya was still a colony and a puppet to the west and still is.

And the funny thing is upon all the fucking and worshipping of the balls of the white man and now the Chinese and Indians,majority of Kenyans are still poor today and live among world largest slums even in the so called urban areas.How much more your poor peasant farmers who's lands were forcefully taken away from them to be given to the British just to farm tea and flowers.I mean,are you that dumb and controlled.

IMF programme don't run a country, Argentina and co always run to IMF because they're developing and want the best for their nations,IMF just advice you on austerity measures that
manage your micro economic indicators in order for investor confidence and credit credibility. We are rated B+ on the international credit credibility alongside SA,Egypt and co.

As for Chinese loans,we have taken billions.Even Mills took 3 billion dollars Chinese loans when we had no oil and now 2 billion dollars Chinese loans for bauxite mining has been realeased this year for roads infrastructures. Most major highways and flyover were done with Chinese loans buh we don't let any economy controls us because we have the natural resources to act as collateral unlike your tea dependant economy who has nothing with the Chinese government seizing your economy if you can't pay your Chinese loans burdens which I know you can't. No African economy can manage such loans. Your little tea economy is debt stricken and still worship white tourists like Gods.I have particular issues with how Indians still control your asses and don't you feel ashamed that you couldn't drive away your oppressors even when you claimed to gain your fake independence. Your country is still as poor as f**k.filled with slums and poverty EVERYWHERE.

And Akufo Addo is better than any president your nation will ever have.Check his legendary speeches on YouTube and you will be a follower. I can promise you that if you even aren't already.

My good Kenyan friends please come and carry your brother away cos he's drank as hell and high just as Uhuru is always with his red eyes.

I bet you 99.8% of Ghanaians don't know if there's a country called Kenya or what Kenya is. I can bet you that the Bible's Can an is far known then Africa's Kenya.The few Ghanaians on this site have nothing buh respect for Kenya and all African countries just as our father Nkrumah did.It's only Nigeria who we have an unsettled score with since the17th hundreds and post colonial era buh we're still best of brothers.

You took my tweet literally!

Just30:
we dont have a public debt book

though those infos are now public documents that can be obtained from the BOG and Finance ministry.

We also get oversubscrpitions. No one should cheer that!

Just30:
and Ghana has floated one this year
for 3 billion dollars and it was oversubscribed by 20billion dollars

A 'MARGINALLY' story yet again!

Kenya’s debt to GDP ratio shrinks marginally - IMF report

When it comes to money matters,margins do matter!

https://www.the-star.co.ke/business/2019-05-30-kenyas-debt-to-gdp-ratio-shrinks-marginally-imf-report/

The Ghana Revenue Authority missed its collection forecast by 9.7% in the first quarter, according to data released Monday on the website of the Finance Ministry. The fiscal deficit was 1.6% of gross domestic product for the period, against a targeted 1.4%, it said. The West African nation has fallen short of its budgeted revenue by 3.5 billion cedi ($656.4 million) over the past three years, with collections averaging only 13% of GDP, compared with 20% by its West African peers, it said.


From Bloomberg https://www.bloomberg.com/news/articles/2019-06-02/ghana-makes-staff-changes-at-revenue-agency-to-boost-collection

13% of GDP!


https://www.bloomberg.com/news/articles/2019-05-28/ghana-s-debt-at-the-highest-in-four-years-as-revenue-undershoots



Total debt was at $38.9 billion at the end of March, up 16% from a year earlier and the highest since at least March 2015, when the central bank started publishing these numbers in dollars. As a percentage of gross domestic product, debt rose to 58% in the month compared to 50% a year ago. More than half of that is external loans.

The debt decreased marginally,marginally!

Can they show their debt books in public for all to see?

rvp20182:
Again when it come to macro-economics - you have it worse than Nigeria.

Now where evidence that Kenya commercial debt has risen because we have flouted two Eurobonds (6B dollars)

Here are Kenya external debt register - as of Sept 2019.

Owners of banking shares were Wednesday Sh38.3 billion richer after a surge in the lenders’ stock on news that Parliament’s finance committee had asked MPs to repeal a cap on commercial lending rates.

Eight of the 10 banks listed on the Nairobi Securities Exchange (NSE) gained on what stock dealers linked to increased demand for the lenders’ shares on the expectation of increased profitability and stock gains.

This marks the biggest single-day gain by bank stocks in many months, analysts said, in a share price appreciation that started on October 18 when news leaked that President Uhuru Kenyatta had demanded that lawmakers remove the cap on commercial lending rates.


The rate cap really squeezed us although the economy continued showing its resilience.Almost all sectors felt it! The Mp's got it wrong at first,it's better now that they have corrected it.

https://www.businessdailyafrica.com/news/Bank-shares-gain-Sh38bn-in-a-day-on-rate/539546-5331184-r4k2ce/index.html

vaxx2:
You keep hiding under interest rate capping as if it is not a flaw from your governance. Your poor lending ratio push up the idea by your parliamentarian to introduce capping .... forgetting the impact on your micro economics performance ..... Per head is a factor in economics, it averagely give a valid judgement opinion on who is doing better . concrete statistics has proven we are doing 8 million in 2018 but you foolishly ignore that and drag up dangote who is just a secondary player in the cement industry in Ghana to form your porous opinion. An act of madness. so economically, per dangote 6 million 2018 data , we are doing far better than kenya ....



Either per head or per consumption, Ghana is miles ahead of you.

I don't think folks who have been bailed out a countless of times by IMF have the moral authority of teaching us economics!

https://www.economist.com/middle-east-and-africa/2019/06/22/after-its-16th-bail-out-ghana-hopes-to-put-the-imf-behind-it

Sirens wailing, a black government car pushes through the traffic, past the beggars and street vendors, up a potholed road. Vehicles like these, the perks of a growing number of political appointees, are a common sight in Accra—and a source of popular outrage. Since Nana Akufo-Addo took office as president in January 2017 the number of government ministers has soared by 42% to 125, each with a car, guards and a taxpayer-funded home.

Outside Ghana Mr Akufo-Addo has been hailed as a hero. When he was sworn in, it was as if he was a passenger in a plummeting aeroplane who had just been handed the controls. His predecessor, John Mahama, had taken a high-flying economy—growth was 17% in 2011 thanks to the first production of oil from its Jubilee Field—and promptly put it into a nose-dive. Under Mr Mahama inflation soared, the economy slowed and public debt ballooned, with much of the borrowed money squandered on higher wages for public employees.

vaxx2:
You are making more noise . what causes the introduction of your goverment to cap interest rate? if not poor governance tell me ? You lending pattern as been sluggish for a while now and it is evident in the performance of your micro economics . even your credit rating has suffer set back ....making IMF skeptical of further borrowing you....

Idiot , Ghana economy growth is majorly broad based not entirely oil and minig . Non-oil GDP has increased from 4.6% in 2016 to 6.5% in 2018 and is projected to reach 6.0% in 2019 and 6.7% in 2020. that is our non traditional commodity.

Our detractors are waiting for Kenya Airways to die!

African most improved airline of the year in terms of increasing Inter-African connection.

Kenya Airways!

1.Night time

2.Grinding in the cCity

3.Colourful UON education building

4.On your way to Marsabit

Taken from the 17th floor!

Nairobi

Traffic and Jacaranda

Nairobi,Kenya

Roads sandwiched between lining up trees! Things you'd love to see!

Theatrics and games of PR!

vaxx2:
politicians can be mad.... this pics really got me cracking.

Seriously you need a settle down already,lasses will be the end of you!

TayserMahri:
Will be there in few hrs time... if you have a sister On a serious note will be there 8PM.

Thing with Ghana is their country doesnt look sophisticated but they actually are by most parameters. Would be wrong to judge Ghana by her pictures. Their citizens do enjoy a good quality of life than most africans

No one said it is.

GENEGIRIA:
Kenya is not a paradise that you want to portray. Kenya is a very corrupt country. How much electricity do you produce? Stop talking crap.

The Ethiopia,Kenya,Tanzania line should be extended all the way to the South then!

Soon folks will be begging to sell us electricity at absolutely throw away prices in spite of us having excess of below 1000MW,which is better!

rvp2018:
Yes Uganda are adding 600MW in Karuma dam. Ethiopia are also hoping to sell us 400M. We already have 1000MW and more excess coming. Tanzania the laggards are adding 2100MW when they can hardly consume 1,000MW.

Meanwhile Nigeria and South Africa have such a deficit one wishes we can all export to them.

Uganda have slashed the rates for the electricity they sell to us almost by a whole half,they are desperate to sell their excess power.When we finish the Suswa line,Western Kenya will begin using our own idle power and we won't need any energy imports.Who would Uganda sell all that idle energy to? The reason as to why we import little energy from Uganda despite us having excess power is that we prefer their cheaper power to the costly thermal plants that serve Western Kenya.

rvp2018:
Let me summarize. IMF bailout are bad news. You should avoid it by managing your macro-economics better. Macro-economics - stable currency, low single digit inflation, low interest,etc

Your electricity sector is worse than kenya - you sign even more lopsided 'take or pay' contracts with power producers - and you're losing 1B dollars in excess capacity annual. You consume 3000MW with whooping 2000MW idle. At least in Kenya we stopped in time - we now have idle 1000mw. Tanzania and Ethiopia are about to face the music - of excess capacity.

Kenya we long turned the corner - we are nailing our challenges one by one - very soon Ghana will be back on their 18th IMF bailout as we become a middle class country.

You country is one huge pendulum swinging wildly - one minute growing at 1% - next 8% - fix that - fix the macro-economics - and maybe mayabe you can be taken seriously.

They won't easily accept this, I remember the last time we faced them on this.

kikuyu1:
True but check RSA! They outspend us HUGELY yet their outcomes are dismal. Kids actually finish high school with Kazibure type English unable to do lower high school Math!

Those small margins do matter to him. In business reporting, 493 million profit might as well be presented as a half a billion profit! I also think he's upset a little bit!

rvp2018:
You give him an inch he takes a mile.Okay this is more friendly fire so hopefully we can learn about Ghana.I tend to think behind the rosy picture there is an ugly side we need to unravel here.

The money converter quoted the recent market rate. He wants the old rate before the said 7 percent depreciation. Give it to him!

rvp2018:
5.2 cedis is a dollar.11B Ghana cedis is 2b dollars.Facts are stubborn.

20 percent was our projection that we missed,that's why I quoted the sum. I don't think many economies in Africa achieve that figure of 25 and above!

Just30:


tax to gdp ratio does not increase like that

Anything below 25% is an underperformance for any middle-income economy

In think I've accepted your over 2 billion dollar mark! I'm not one who dwells arguing on stuff! I'm that understanding!

vaxx2:
When you are quoting blog. references where the blogs get its information. that is more important


Give me the hyper test link to that blog .

Ok

Salaries take a big percentage,that's to be expected. It's true we didn't build a single classroom nor schools nor anything that year!

vaxx2:
You shold simply ask where this money are going to. i am not gonna spoonfeed you by telling you how your budget is spend blindly. your last budget on education was consumed by salary . no building of schools, No rehabilitation of worn out project . and now you are piloting a new education model which the goverment claim it will received additional boost hence the current increament .

Kenyans relax , Ghana budget for 2020 will be coming up soon ....

Ok,slightly over 2B USD. I will take that!

Deloite is not just some cheap blog though file:///C:/Users/user8/Downloads/gh-deloitte-2018-budget-commentary-and-tax-highlights.pdf

vaxx2:
You quoted an application to-do blog. you forget so quickly the diffrence trend in exchange rate. Ghana cedis has lost over 7 percent of its value this year. As at the time of the budget . the cash is slightly above 2 billion dollar and above

Sadly,it's never enough.Money has never been enough! We spend the same on per capita terms with Czech republic,Hungary and Bulgaria but we lag behind them. rvp2018 in some scenarios,Africa shouldn't be our benchmark,we should learn how Hungary,Bulgaria and Czech Republic are doing it.

For instance, the report says, many countries such as Hungary, the Czech Republic and Bulgaria with similar levels of per student spending as Kenya have achieved higher completion rates in secondary schools compared to Kenya.

“A cross-country comparison between spending per secondary student (in per capita GDP percentage terms) and secondary completion rates shows that given what Kenya spends, there is room to obtain higher outcomes in terms


If we choose not to be wasteful,we can even be better. https://www.businessdailyafrica.com/news/Kenyans-are-not-getting-value-for-tax/539546-5242050-ckjws8z/index.html

Just30:
kul for you

you need that boost

It was 18.5 percent in 2018 as per this report.We ought to be somewhere 20 percent,this is not good!

https://www.oecd.org/countries/kenya/revenue-statistics-africa-kenya.pdf

Just30:
Kenya ratio was 15% in 2017

the facts are there
Ghana's ratio has never been below 18% since 2015 or so

Is this your education budget? THat's 11 billion cedis?

vaxx2:
The screenshot you posted is the projection for the year 2019/ 2020. has it been implemented yet....



This is for Ghana...

https://www.businessdailyafrica.com/datahub/Education-sector-set-for-biggest-rise-in-budget-funds/3815418-4944852-xhsey3/index.html


In 2018/2019 it was at 442 billion,in 2019/2020 it is projected to be at 473 billion shillings!

vaxx2:
The screenshot you posted is the projection for the year 2019/ 2020. has it been implemented yet....



This is for Ghana...

Here!
Where is your evidence for Ghana 4 billion dollar education budget?

vaxx2:
You are abnormal I swear. just for the year 2019, Ghana is spending about over 11. 1 billion Ghana cedis on education with additional supplement....and do you know how much is that ? . it is nearly 4 billion dollars. your economy will collapsed doing that.... how much is your total budget on education? what Ghana budget on education is what you guys are projecting toward 2020 which is 400 billion kenya shilling. that is roughly 4 billion dollars .

Ghana budget coupled with supplement will sink your entire GDP. can you just . we are talking in excess of 50 billion dollar here and that is 2019....


When you show me your tax to revenue income, i will hands down as of now . you guys are just dalm poor