Ghana’s finance ministry on Friday held a food party in the capital Accra to celebrate what it describes as significant economic successes.
On a poster announcing the event dubbed “Kenkey Party”, the ministry said it was celebrating “Ghana’s Hat-Trick” of successes.
Those successes include successful issuance of Eurobond abroad raising some $3 billion for various projects.
The country’s “completion of IMF-ECF program” and the slight appreciation of the national currency the cedi were also reasons for the celebration.
Ghana’s finance minister, Ken Ofori-Atta was one of the prominent personalities that graced the celebrations.
He was seen eating “Kenkey” which is a popular local meal and beaming with smiles.
Over subscribed Eurobond
This week Ghana’s government announced that it’s $3 billion Eurobond offering attracted bids that were more than six times the amount issued.
Ken Ofori-Atta told Bloomberg TV that the sale’s orderbook was about $20 billion. He says it signals that an appetite for risky assets is still going strong.
International analyst’s familiar with Eurobonds of emerging markets say this was the first time that a sovereign bond from Africa had attracted that huge appetite, with orders being seven times the required amount.
Weakening currency
Ghana’s currency the cedi in recent weeks suffered significant depreciation sparking debates among Ghanaians.
The cedi in February suffered a record fall against the U.S dollar and other major foreign currencies.
That significantly affected Ghana’s bonds offered to international investors.
At the time the currency depreciated by 8.6 percent representing the highest among over 140 currencies tracked by financial experts.
Last week the value of the cedi became a major talking point when Google’s currency converter showed that Ghanaians needed 22 cedis to buy a dollar.
In reality one requires a little over five cedis to buy a dollar.
Google apologised to Ghana’s finance ministry and central bank for what it says was an error on its currency converter.
In a letter Google blamed the error on a “minor glitch” which has since been “quickly fixed”.
IMF program
Ghana for the past four years been under an International Monetary Fund program helping to stabilize its economy.
The country will however exit that program in April, according to a statement from the IMF.
The Executive Board of the Fund said the decision follows the approval of some $185 million for Ghana after the 7th and 8th review process.
But the fund raised some concerns ahead of Ghana’s April exit from the four year Program.
It warned that the continued macroeconomic adjustment should be maintained especially ahead of the 2020 election in the West African Country.
Reaction to food party
There have been reactions to the “Kenkey party” by Ghanaians on social media.
Celebration of mediocrity!
You went to borrowed $3b which of course going into the usual leaking pot and not doing any good to our debts to GDP ratio, you got gut to organized kenkey party. As Burkina Faso people said, some are eating others are watching this is how wars start.
— Peter Doe Jnr (@PeterDoeJnr1) March 23, 2019
New Zealand lost about 50 people and Akufo Addo responded in many sensible and responsible ways.
Ghana looses 70 people and the government organizes a Kenkey Party on the same day.
May we get responsible leadership one day.— Ing. Paul Afotey Quaye (@niiafoteyquaye) March 23, 2019
This government had a kenkey party for securing a loan deal. We are doomed as a nation. Sigh pic.twitter.com/7JDOYmXDPj
— Kodzo (@ElormK__) March 23, 2019
Ken paaaa, you carry my problems go collect $3bn, you go talk fine for Bloomberg and BBC, you come home come organise kenkey party and you no invite me. I no go talk anything. As Burkina Faso people go talk, some are… https://t.co/PNNKR2Mk6g
— Franklin CUDJOE (@lordcudjoe) March 22, 2019
Mediocrity is when you organize a kenkey party with the money you’ve borrowed from others in the name of ‘development’. This is shameful and unreasonable.#GhanaBeyondAid#FailedCountry pic.twitter.com/Qn6HWhJ5Xw
— Nii Adjetey Cleland ?? ™ (@adjetey_cleland) March 22, 2019
Hmmmmmm! did I hear some kenkey party took place on Friday to celebrate borrowing by the gov? When over 60 Ghanaians perished in a horrible accident? I can’t think far. #ghanaisacrazycountywithcrazypeople#
— Prof. R. Azambut (@AzambutR) March 23, 2019
Source: Africafeeds.com
