GIPC set to halt unlicensed tech transfers

The Head of the Technology Transfer Agreement Unit at the Ghana Investment Promotion Centre (GIPC), Emmanuel Osei, has announced that sanctions will soon be imposed on businesses and banks that fail to comply with registration requirements for Technology Transfer Agreements (TTAs).

Speaking at a recent stakeholder engagement in Accra, Mr. Osei emphasized the Centre’s determination to strictly enforce the legal framework governing technology transfer arrangements and urged all stakeholders to adhere to the regulations.

“Technically, if you don’t register the agreement with the GIPC, you cannot transfer fees under this agreement. If a company is found guilty under summary conviction for flouting these laws, the GIPC will revoke its registration within the relevant sector,” Mr. Osei explained.

TTAs are formal arrangements between local companies (transferees) and foreign companies (transferors) for the provision of services such as technical support or intellectual property, with a minimum duration of 18 months. These agreements must be registered with the GIPC before any transfer of fees to the foreign partner is approved.

Mr. Osei also cautioned financial institutions, noting that they would not be exempt if they process payments related to unregistered agreements.

“The GIPC, in collaboration with the Bank of Ghana (BoG), will introduce a range of punitive measures against banks that facilitate these transfers without a valid GIPC certificate,” he added.

The stakeholder forum was held to enhance understanding of the existing TTA regulatory framework and promote compliance with its requirements.

Organized by the GIPC, the event brought together key stakeholders from government agencies, financial institutions, regulatory authorities, and private sector organizations.

June inflation projected at 16%

By Praisebell Rosemond Larbi

Ghana is set to register another sharp decline in its inflation rate for June 2025, with headline inflation projected to drop to 16.0 percent, according to a forecast by IC Research, the economic intelligence unit of IC Securities.

This would mark a significant 240 basis point (bps) fall from May’s inflation rate of 18.4 percent, continuing the country’s downward trend in inflation during the first half of the year.

“The June 2025 CPI data window recorded a 29.5 percent month-on-month and 35.3 percent year-on-year appreciation of the Ghanaian cedi against the US dollar. This exerted downward pressure on prices of imported items, with notable declines in petroleum prices and transport fares,” the report stated.

IC Research attributes the expected decline to a combination of foreign exchange pass-through effects and lower energy prices, including a 15 percent reduction in commercial transport fares, which helped suppress transport inflation and created downward spillovers for other price categories.

The report estimates month-on-month inflation for June will settle at 0.8 percent, reinforcing the downward trend in price levels observed since the start of the year.

Food and Non-Food Inflation Trends

The latest projections follow a series of favorable inflation trends reported by the Ghana Statistical Service in May, where food inflation dropped by 220 basis points to 22.8 percent, driven largely by falling prices in vegetables and tubers. The decline offset slight increases in other food items, including fish and seafood.

IC Research suggests that reductions in transport costs in June may have eased the month-on-month price pressures on vegetables and tubers, helping sustain food disinflation.

On the non-food side, inflation plunged by 350 basis points to 14.4 percent year-on-year in May, the seventh consecutive monthly decline. Transport inflation dropped sharply by 11.8 percentage points to 3.1 percent year-on-year, largely due to the appreciating cedi and falling fuel prices.

“We observed declines across 10 out of the 12 divisions of non-food inflation, highlighting that the ongoing disinflation is broad-based,” IC Research noted.

Macroeconomic Outlook Strengthens

If confirmed, the June forecast would represent the fifth consecutive monthly decline in Ghana’s annual inflation rate, marking a total drop of 540 basis points in just five months, a stark contrast to the 10 basis points cumulative decline recorded during the same period in 2024.

Economists say strong base effects, currency appreciation, and falling global oil prices have all worked in Ghana’s favor in recent months, contributing to steady improvements in macroeconomic conditions.

The decline in inflation is expected to ease pressure on consumers and businesses while strengthening investor confidence in the country’s economic recovery.

Economy poised to break 4.8% growth in 2025

Ghana’s economy is on track to grow by more than 4.8 percent in 2025, according to a new economic update by IC Research, the intelligence unit of IC Securities.

The report, titled ‘Ghana’s Q1 2025 Real GDP Growth: Green Shoots in Tight Soil,’ points to strong momentum from the first quarter and an improved outlook for the rest of the year.

The forecast is based on Ghana’s better-than-expected real GDP growth of 5.3 percent year-on-year in the first quarter of 2025, compared to 4.9 percent in the same period of 2024. Non-oil GDP grew even more impressively at 6.8 percent, defying fiscal tightening measures that initially dampened expectations.

“We foresee full-year 2025 overall growth likely above our upper-band forecast of 4.8 percent; however, we opt to keep our forecast on hold within the current range of 3.8 percent to 4.8 percent as we await the extent of fiscal drag on second-quarter 2025 performance,” the report stated.

Sector-by-Sector Performance

Agriculture Shows Strong Rebound
The agriculture sector delivered robust 6.6 percent growth in Q1, with the crops sub-sector rising 6.7 percent year-on-year, a development attributed to favorable conditions and declining food inflation since February. Cocoa also posted a modest rebound, reflecting early signs of recovery in a struggling sector.

“The impressive performance in crops is yet to fully reflect the government’s investment under the Agriculture for Economic Transformation Agenda,” IC Research noted.

The government has allocated GHS 1.5 billion in the 2025 budget to bolster local food production, including grains, vegetables, and poultry, with results expected during the main harvest in Q3.

Industry Sector Slows on Oil Contraction
The industrial sector experienced slower growth of 3.4 percent, largely weighed down by a 22.1 percent contraction in the oil and gas sub-sector. This decline dragged overall growth in mining and quarrying to just 1.4 percent, compared to 12.8 percent a year earlier.

Construction also suffered, expanding only 1.5 percent year-on-year, compared to 8.2 percent in Q1 2024. IC Research attributes the decline to the government’s temporary freeze on contractor payments pending an audit of legacy arrears.

Services Sector Emerges as Growth Driver
The services sector, which remains Ghana’s largest contributor to GDP, recorded 5.9 percent growth in Q1 2025, up from 4.7 percent in the same period of 2024. The sector’s growth was supported by strong performances in trade, financial services, ICT, and transport and storage.

Together, services contributed 2.54 percentage points to the overall Q1 growth, making it the single largest driver of economic activity.

Outlook for Full-Year 2025
IC Research maintains a cautiously optimistic outlook for the rest of the year. While the strong Q1 results point to the possibility of exceeding the upper 4.8 percent growth forecast, the firm says it is holding its full-year projection in the 3.8 percent to 4.8 percent range until the impact of fiscal consolidation on Q2 performance becomes clearer.

“The economy is showing green shoots despite tight fiscal conditions. If current momentum holds, particularly in agriculture and services, Ghana could outpace expectations for 2025,” the report added.