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00:00I have with me live in our Lego
00:04studio to discuss this and much
00:05more. The managing director of
00:07Kairos Capital, Sam Chiroka
00:09live in our Lego studio to
00:11discuss the top headlines for
00:12today. Mr Chiroka, thanks a lot
00:14for joining us on the show
00:15today. We have a whole lot to
00:16unpack here but let's talk
00:18about this executive order.
00:20Now, we're making reference to
00:22the unsigned document here and
00:24this was expected to have
00:25commenced last month but let's
00:27talk about the impact here. The
00:29impact on taxes and levies in
00:32foreign currency, looking at a
00:34suspension of import duties, VAT
00:36variations, import duty rebate
00:38and much more. Let's unpack the
00:40layers here and the sort of
00:41impact we would see if this
00:43were to be the way to go for the
00:45next 6 months. Well, thanks for
00:47having me. First, I'd like to
00:48commend the fiscal side of our
00:50economy for stepping to the
00:51plate. This is what we've
00:52always or personally I've
00:54always clamored for. We've seen
00:56a lot of intervention from the
00:58government. Yeah. And all
01:00manners of things that the
01:01monetary, every time there's an
01:02MPC, even without MPC, you see
01:04reports from what the monetary
01:05policy is trying to do. And so
01:07this is basically maybe, should
01:09I say the first major attempt on
01:12the fiscal side to find a
01:14solution to the burgeoning
01:17inflation that we've had in
01:18recent time. And I would say yes
01:20that though it's short term
01:21because we're talking of a 6
01:22months period, but at least it
01:24gives, it gives the impression
01:26that the fiscal side is also
01:27listening and trying to do
01:28things that will help the
01:29economy. So when you reduce
01:31import duties on staple food, on
01:33rice, paddy, remember,
01:35inflation is 33, over 33%, but
01:38there is 40% food inflation. So
01:41when we begin to reduce import
01:43duties, remove import duties, VAT
01:45and all of that on staple food,
01:47on paddy rice and all of that,
01:49you're dealing with a huge
01:51contributor to inflation and
01:52that we will see the effect of
01:54that. Maybe inflation might
01:56still go a bit more, but only
01:58decelerating. And that also lays
02:00credence to some focus as well
02:02now where they've tilted just a
02:04little bit away from the
02:05central bank governor's pitch
02:07where he says, well, economic
02:09moderation should start say June,
02:11May, June, and then we'll see
02:13the further moderation. But so
02:15many analysts are saying, well,
02:16we would now see that
02:17deceleration much more
02:18manifested by the first quarter
02:20of next year. Well, if we do
02:22this, added to what the CBN has
02:24done, I think that the CBN
02:25governor's timeline will begin
02:26to, already we're seeing that
02:28even in the last two months,
02:29inflation, yes, has been rising,
02:30but on a decreasing basis, if
02:32you look at it, if you compare
02:33it month to month, so you will
02:35begin, we expect to continue to
02:36see that. But I dare say that
02:38is a step in the right
02:39direction and that we don't have
02:41too many options, especially on
02:43the monetary policy side. So
02:44it's time for the fiscal
02:45authorities to take such actions
02:47as dealing with taxations,
02:49import duties, things like that.
02:51Also, I think that we can go
02:52further and look at our expenses,
02:54our recurrent expenses, what are
02:56we spending money on and why do
02:57we need to spend money? Apart
02:58from salaries, other overheads,
03:01are there some of them that we
03:02can begin to cut? Because once
03:04you're using the monetary
03:05policy on one side to try and
03:07reduce money in circulation, if
03:08the federal government is still
03:09pumping out money in
03:10circulation, then it's
03:12counterintuitive. And talking
03:13about pumping money, we are
03:14expecting the template for the
03:15minimum wage to be released
03:16today by the finance minister
03:18and also engagements around that
03:20area also resuming today as well.
03:22Talks are expected to last from
03:24this week, Tuesday, to the next
03:25five days. So we are going to
03:26see how things shape up. But I
03:28would like to take you just a
03:29little bit before we move over
03:31to the next conversation with
03:32Mark DeGioia. Let's talk about
03:34Ghana also securing this
03:35$2 billion facility from South
03:37Korea as well. Now, I know the
03:38conversation we've had that time
03:40and time again, looking at
03:41having access to finance, having
03:43the global financial
03:44architecture work for us and
03:46having these finances come at
03:47concessional rates. How important
03:49is this? Well, it's important
03:51for the Ghanaians and the Ghana
03:53economy that's also been
03:54struggling in recent times up to
03:56the point where they had to
03:57default on their Euro bond.
04:00Well, so I'd say it's good to
04:03get the liquidity. However, like
04:05I always struggle with many
04:06African countries is the fact
04:08that getting the loan seems to
04:10be the easier thing. The
04:11question is repayment. What you
04:13do with it and then repayment.
04:15So Ghana must note that it's not
04:17free money, it's not a grant.
04:18Well, we're still expecting the
04:19IMF board, executive board to
04:21also sign off on this $360
04:23million loan and then the Euro
04:25bond, the conversation with
04:26official creditors as well. But
04:28we'll have to leave this
04:29conversation with the top
04:30stories here.