Ghana cabinet grants approval for new National Airline
London, March 10, 2021 (AltAfrica)-A new national airline for Ghana is soon to take to the airways afterPresident Nana Addo Dankwa Akufo-Addo revealed that Cabinet haD granted policy approval for the establishment of a National Flag Carrier (Home Based Airline) with strategic partner participation.
In his State of the Nation Address delivered on Tuesday, March,09, 2021, President Akufo-Addo however told the Chamber, “the House will be duly informed on developments in this area.”
The most recent state carrier Ghana International Airlines collapsed in 2010 after the government’s withdrawal of funding. At the time, the airline claimed that the government was not simply refusing to provide money, but also preventing potential private investors from doing so.
This followed the failure of Ghana Airways in December 2004.
The country’s location gives it a potential strategic advantage as a regional air hub for West Africa.
The Kotoka international airport has been renovated and expanded to include a new terminal following its potential for air passenger traffic growth.
Meanwhile, President Akufo-Addo says the construction of the second and third phase of the Kumasi Airport, second phase of Tamale Airport, and rehabilitation of the Sunyani airport, are all progressing steadily.
He added:” A decision on the siting of the proposed airport in the Central and Western Regions is imminent.”
Meanwhile, Ghana Ministry of Finance has commenced processes for the 2021 International Capital Market (ICM) Funding Programme.
The US$5 billion funding under the programme, when finalized, would be used to support growth-oriented expenditures in the 2021 budget and to conduct liability management of both domestic bonds and Eurobonds.
A statement issued by the Ministry of Finance on Tuesday, March 9, 2021; further explained that Government is in the process of mandating Bank of America, Citi Bank, Rand Merchant Bank, Standard Chartered Bank and Standard Bank as Lead Managers under the Programme.
“One of the key mandates for the banks is to advise the Government on various alternative funding structures and options especially for the Eurobond, that would best fit Ghana’s funding requirements and provide fiscal capacity to further support economic revitalization and recovery at this time,” the statement read.
Instruments under the ICM Programme consist of Eurobonds, Diaspora Bonds, Sustainable Bonds, and Syndicated/Bridge Loans