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Transportation and storage cost drive up pepper prices in Ghana –

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In Ghana, pepper remains an essential part of the daily food life. The fiery red and green peppers add flavour to every meal and are a cornerstone of local cuisine. However, in recent times, pepper sellers have increased the prices at which they sell these vital ingredients.

The surge in pepper prices has been particularly noticeable in the Mallam market, where prices have significantly risen compared to the beginning of the year.

According to the market women, they are not trying to make extra money at their customers’ expense rather, their costs have gone up, and they must reflect these increases in their prices.

Currently, a bag of fiery red pepper is now priced at 4,000 GHS, while green pepper costs 2,300 GHS.

In an interview with some pepper sellers, they explained their reasons for selling peppers at higher prices.

Amina, a known vendor of pepper in the Mallam Market, explained that they charge higher prices due to the high cost of transportation fare in the country. According to her, the journey to the farm is not an easy one.

It involves hours of travel, negotiating with the farmers, paying people to help with bagging the peppers, and the struggle to bring them to the market. She again mentioned that sometimes, these costs are then passed to the buyers.

Another pointed out that the cost of storage and handling also contributes to the price increase. Pepper traders must ensure that the peppers remain fresh and of high quality until they are sold. This can involve costs related to proper storage and handling to prevent spoilage, especially in climates where peppers can quickly deteriorate.

Furthermore, some local sellers indicated that they have their own operational costs, such as stall rental, utilities, and labour, which must be covered through the prices they set for their peppers.

The increasing prices of peppers have also been influenced by external factors such as weather conditions and market demand. Unpredictable weather patterns, including droughts and heavy rains, can adversely affect pepper crops, leading to lower yields and increased scarcity. When the supply decreases, the prices naturally go up due to higher demand.

Additionally, economic factors such as inflation and currency fluctuations has impacted the cost of agricultural inputs like seeds, fertilizers, and pesticides. When these costs rise, farmers pass them on to sellers, who then adjust their prices accordingly.

Consumer reactions to the price hikes have been mixed. Some understand the challenges faced by sellers and the reasons behind the increased costs, while others feel the pinch on their wallets.

For many Ghanaians, peppers are a staple, and the rising prices mean adjustments in household budgets and, in some cases, a reduction in the quantity of peppers purchased.

In response to the price hikes, some consumers are exploring alternatives such as growing their own peppers in home gardens or seeking out more affordable substitutes. However, for many, the unique flavour that peppers bring to traditional dishes is irreplaceable.

Source: gbcghanaonline.com

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Ghana Reports First Oil Output Increase in Five Years With Production Rising By 10.7%

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Ghana has recorded a 10.7% increase in crude oil production in the first half of 2024, marking a reversal in a five-year trend of declining output, according to a report by Ghana’s Public Interest and Accountability Committee (PIAC).

The growth was largely driven by the Jubilee South East (JSE) project, managed by Tullow Oil, which began production in late 2023. This addition to Ghana’s Jubilee oil field helped boost production to 24.86 million barrels by June 2024, compared to a 13.2% decline over the same period in 2023.

PIAC’s half-year report also highlighted a significant rise in petroleum revenue, which surged by 56% year-on-year to $840.8 million by mid-2024. Ghana, a country that began oil production in 2010, depends on petroleum revenue for around 7% of government income. The report further noted a 7.5% increase in gas output, reaching 139.86 million standard cubic feet by June.

Despite the positive trend, Isaac Dwamena, coordinator of PIAC, cautioned that Ghana’s petroleum sector faces both technical and financial challenges. Ghanaian law requires oil companies to allocate at least 12% of project shares to the state, a mandate Dwamena noted can deter investment due to the high cost. “The state can take 15%, 20% carried interest based on negotiations, and that has been a disincentive,” he explained.

To further drive production, Ghana is planning to sell more exploration rights, aiming to harness its fossil fuel resources while also generating funds to support its energy transition. Major oil companies operating in the country include Eni, Tullow Oil, Kosmos Energy, and PetroSA.

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President urges universities to strengthen ties with industries

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President Nana Addo Dankwa Akufo-Addo has called on universities in Ghana to strengthen ties with government, industries, and the communities they serve to ensure that researches are aligned with the needs of society.

That would contribute directly to the realisation of national development goals, he said.

The President made the call at Nyankpala during a ceremony to inaugurate a three-storey multi-purpose building for the University of Development Studies (UDS).

The building fulfills the President’s promise to the UDS during its 25 Anniversary celebrations.

It is named the “Silver Jubilee Building” in remembrance of the President.

The facility boasts of offices, conference halls, lecture theaters, and houses some faculties of the university.

President Akufo-Addo said universities were “breeding grounds” for ideas, researches and innovations that drove the nation’s progress and should remain actively engaged in the development process.

He said government believed in educating the population as the bedrock of a thriving democracy, a vibrant economy and a just society.

The President, thus, outlined some policies implemented aimed at improving access to education at all levels, which included the “no guarantor policy”.

He said the policy had improved access to tertiary education as it had eliminated financial barriers that historically prevented brilliant students from pursuing higher education.

The “no guarantor policy” for student loans increased the numbers of students seeking tertiary education from 443,978 in the 2016-2017 academic year to 711,695 in the 2020-2023 academic year, an increase of 60.3 per cent.

President Akufo-Addo said his government had extended considerable energy and resources to the education sector, recognising it as the most powerful tool to transforming the nation.

He said: “The considerable budgetary allocations within the period totaling some GH¢12.8 billion, amply demonstrates the shared determination of the Akufo-Addo government to ensure that education becomes a catalyst around which the transformation of our nation revolves.”

Source: GNA

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We’ve learnt our lessons; we won’t borrow to finance 2024/2025 crop season

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The Ghana Cocoa Board (COCOBOD) has announced that it will transition to self-financing for the 2024/2025 cocoa crop season, starting in September 2024.

For the past 32 years, COCOBOD has relied on offshore borrowing to finance cocoa purchases through its cocoa syndication programme. However, the organization is shifting its strategy to reduce dependency on external funds.

Speaking to the media on Tuesday, August 20, COCOBOD’s CEO, Joseph Boahen Aidoo, explained that this new approach is expected to save an estimated $150 million.

“Is it good that always COCOBOD should be heard going to borrow? Are we comfortable with that tag? Today, you have heard that COCOBOD is not going to borrow. It is quite a good time for any human being to learn his or her lessons.

“In 32 years, we have learned our lessons and we think that it is high time we wean ourselves from the offshore international financial markets and then finance the crop ourselves here and that is exactly what we are going to do. And I think it comes with a lot of projectory benefits.

“We are looking for $1.5 billion this crop season and looking at the interest rates last year, which were over 8 percent, plus the cost, it means that we can save more than $150 million by the decision not to go offshore.

He also denied assertions that COCOBOD was short-changing farmers with its pricing of cocoa.

“It is not true that COCOBOD is not giving the farmers a fair price. If you follow the narrative, you will notice that from 2017 on, COCOBOD has even been more than fair.

“The government had been more than fair to farmers because this was a time when prices had collapsed but the government and COCOBOD did not reduce the farmers’ price.”

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