West African Monetary Institute

Annual Report and

Statement of Accounts

For the Year Ended

31st December 2016
 Table of Contents
CHAPTER ONE ............................................................................................................................ 1
GENERAL OVERVIEW ................................................................................................................. 1
1.1 Developments in the Global Economy ............................................................................ 1
1.2 Macroeconomic Developments in the WAMZ .......................................................... 3
1.3 Macroeconomic Convergence and Policy Harmonisation in the WAMZ .................. 6
1.4 Activities of the West African Monetary Institute .................................................... 9
1.4.1Multilateral surveillance and statistical harmonization ............................................ 9
1.4.2 Trade and Regional Integration ................................................................................ 9
1.4.3 Financial Integration ................................................................................................. 9
1.5 Statutory Meetings .................................................................................................... 9
1.6 Institutional and Capacity Building .......................................................................... 10
1.7 Publications ............................................................................................................. 10
CHAPTER TWO ......................................................................................................................... 11
INTERNATIONAL MACROECONOMIC DEVELOPMENTS ........................................................... 11
2.1 Introduction ................................................................................................................... 11
2.2 Developments in Output and Prices.............................................................................. 12
2.2.1: Output Developments ........................................................................................... 12
2.2.2 Price Developments................................................................................................ 14
2.2.3 Financial Market Developments:............................................................................ 15
2.3 Developments in Commodity and Currency Markets ................................................... 16
2.3.1 Commodity Markets ............................................................................................... 16
2.3.2 Developments in Exchange Rates........................................................................... 17
2.4 Implications for the WAMZ ........................................................................................... 17
CHAPTER THREE....................................................................................................................... 19
MACROECONOMIC DEVELOPMENTS IN THE WEST AFRICAN MONETARY ZONE ................... 19
3.1 Introduction ................................................................................................................... 19
3.2 The Gambia.................................................................................................................... 19
3.3 Ghana ............................................................................................................................ 22
3.4 Guinea ........................................................................................................................... 24
3.5 Liberia ............................................................................................................................ 26
3.6 Nigeria ........................................................................................................................... 28
3.7 Sierra Leone ................................................................................................................... 31
3.8 Status of Macroeconomic Convergence Based on the Revised ECOWAS Criteria ........ 34

ii
CHAPTER FOUR ........................................................................................................................ 36
ECONOMIC AND FINANCIAL INTEGRATION IN THE WEST AFRICAN MONETARY ZONE.......... 36
4.1 Introduction ................................................................................................................... 36
4.2 Trade Developments ..................................................................................................... 36
4.2.1 Overview................................................................................................................. 36
4.2.2 ECOWAS Trade Liberalisation Scheme (ETLS) ........................................................ 37
4.2.3 ECOWAS Common External Tariff (CET) ................................................................. 37
4.2.4 Convention relating to Inter-State Road Transit (ISRT) of Goods .......................... 38
4.2.5 Free Movement of Persons, Right to Reside and Establish .................................... 38
4.2.6 Harmonised Documentation and Automated Customs Clearance Procedures ..... 39
4.2.7 Harmonisation of Indirect Taxes ............................................................................ 39
4.2.8 ECOWAS Quality Programme and Standards Harmonisation ................................ 39
4.2.9 Economic Partnership Agreement (EPA) ................................................................ 40
4.2.10 Infrastructure for Regional Development ............................................................ 40
4.3 Payments System Development in the WAMZ ............................................................. 42
4.4 Developments in the Financial Sector of Member States ............................................. 44
4.4.1 Banking ................................................................................................................... 44
4.4.2 Banking Supervision and Regulation ...................................................................... 48
4.4.2.1 Cross Border Supervision................................................................................. 52
4.4.3 Insurance ................................................................................................................ 53
4.4.4 Pension ................................................................................................................... 54
4.4.5 Capital Markets ...................................................................................................... 56
4.4.6 Regional Currency Convertibility ............................................................................ 59
4.4.7 Financial Depth and Intermediation....................................................................... 59
CHAPTER FIVE .......................................................................................................................... 61
ACTIVITIES OF THE WEST AFRICAN MONETARY INSTITUTE 2016 ........................................... 61
5.0 Introduction ................................................................................................................... 61
5.1 Management of WAMI .................................................................................................. 61
5.2 Implementation of the Work Program of the Institute ................................................. 61
5.3 WAMZ Statutory Meetings ...................................................................................... 64
5.4 WAMI Publications in 2016 .......................................................................................... 68
5.5 Financial Accounts of WAMI.................................................................................... 69
CHAPTER SIX ............................................................................................................................ 70
CONCLUSION ........................................................................................................................... 70

iii
 List of Figures

Figure 1: World Output Growth (2006-2015)…………………………………….…13

Figure 2: Growth in GDP Components in Major Advanced Economies (2006-
2015)………………………………………………………………………13
Figure3: World Inflation Rates: (2006-2015)…….…………………………………15
Figure4: Monthly Crude Oil Prices (US$/Barrel): (Jan 2014-Dec
2015)……………16
Figure 5: Euro-Dollar & Pound Sterling - Dollar Exchange Rates (Jan 2014-Dec
2015)………………………………………………………..….………….17
Figure 6: The Gambia - Sectoral Growth Rates……………………………….…….20
Figure 7: Ghana - Trend in Real GDP and Sectoral Growth Rates…………….……22
Figure 8: Guinea - Trends of Sector Growth Rates………………………………….24
Figure 9: Liberia - Trends in Sectoral Growth Rates………………………………..26
Figure 10: Nigeria - Sectoral Shares in Real GDP………………………….……….29
Figure11: Sierra Leone - Sectoral Growth Rates………………………………..…..32
Figure 12: Financial Depth in WAMZ………………………………………………60
Figure13: Financial Intermediation in the WAMZ………………………………….60

iv
 List of Tables
Table 1: Summary of World Output Growth (Annual Percentage Change) ……….71
Table 2: Summary of World Price (Annual Percentage Change) ………………….71
Table 3: Components of Real GDP in Selected Economies Account Balance in
Selected Economies..………………………………………………………71
Table 4: Government Fiscal Balance & Debts in Selected Economies (Percent of
GDP) …...………………………………………………………………………........72
Table 5: Current Developments (Annual Percentage Change)……………...……...72
Table 6: Volume of World Trade (Annual Percentage Change) …….………….….72
Table 7: Monthly Crude Oil Price - 2010 - 2015 (US$ Per Barrel)
……………………………………………………………………...…………….….72
Table 8: The Gambia Output and Prices (in millions of dalasis)…….......................73
Table 9: The Gambia: Government Fiscal Operations (in millions of dalasis) ……74
Table 10: The Gambia – Monetary Survey (in millions of dalasis)…………….…..75
Table 11: The Gambia - Analytical Balance of Payments (in millions of US
dollars)………………………....……………………………………………………76
Table 12: Ghana - Output and Prices (in millions of Ghana cedis) ………………..77
Table 13: Ghana - Government Fiscal Operations (in millions of Ghana cedis)
……………………………………………………………………………………….78
Table 14: Ghana - Monetary Survey (in millions of Ghana
cedis)…….………..…………………………………………………………………79
Table 15: Ghana - Analytical Balance of Payments (in millions of US dollars)
……………………………………………………………………………………….80
Table 16: Guinea - Output and Prices (in billions of GNF)………………………...81
Table 17: Guinea - Government Fiscal Operations (in billions GNF)……………...82
Table 18: Guinea - Monetary Survey (in billions GNF)………..…………………..83
Table 19: Guinea - Balance of Payments (in millions USD)………….……………84
Table 20: Liberia - Output and Prices (in millions of USD)……………………....85
Table 21: Liberia - Government Fiscal Operations (in millions of USD)………….86
Table 22: Liberia - Banking System Monetary Survey (in millions of Liberian
dollars) ……………………………………………………………………………...87
Table 23: Liberia - Balance of Payments (in millions of USD) …………………...88
Table 24: Nigeria - Output and Prices (in billions of Naira) ………………………89
Table 25: Nigeria - Consolidated Fiscal Operations of the Federation (in billions of
Naira)…………………………………………………………………….90
Table 26: Nigeria – Monetary Survey (in billions of Naira)……………………….91
Table 27: Nigeria - Analytical Balance of Payments (in millions of USD)………..92
Table 28: Sierra Leone - Output and Price (in millions of leones)…………………93
Table 29: Sierra Leone - Government Fiscal Operations (in millions leones)……..94
Table 30: Sierra Leone - Monetary Survey (in millions of leones)………………...95
Table 31: Sierra Leone - Analytical Balance of Payments (in millions of USD)….96
Table 32: Size of the WAMZ Banking Sector……………………………………..97
Table 33: Selected Financial Soundness Indicators of the Banking Industry……..97

v
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viii
 STATEMENT BY THE DIRECTOR GENERAL

It is my singular honor to present the Annual Report and Statement of Accounts of the
West African Monetary Institute (WAMI) for the year ended December 31, 2016, in
accordance with Article 14.2 of the Institute’s Statute. During the period under
review, the work programme of the Institute continued to be guided by its Strategic
Plan, which was developed from the Abuja Road Map, to fulfill its mandate of
deepening economic integration of the West African Monetary Zone (WAMZ) towards
monetary union by 2020.

Global economic activity rebounded in the second half of 2016 after a slow start in
the first half, emanating from stronger demand which triggered investment
particularly in manufacturing and trade. Commodity prices including crude-oil
reversed their declining trend and steadily increased during the second half of 2016,
though not to the level before the price crash by the end of the year. Growth,
nevertheless, was dampened mainly by United States’ monetary tightening, Britain’s
decision to exit the EU (Brexit), structural challenges faced by most economies and
commodity exporters adjustment to the slump in commodity prices. International
price developments were mixed, as the advanced economies with the exception of
Japan, experienced inflationary trends, while in the emerging market and developing
economies inflation generally declined but increased in some regions notably Sub-
Saharan Africa, that attained double-digit inflation. Reflecting higher commodity
prices, stronger growth expectations, and rising long term interest rates, global
financial conditions improved during the review period.

On the issue of convergence, concerns have been raised as to the sustainability of the
European Monetary Union, with the challenges in the euro area particularly BREXIT.
Closer home, the vulnerability of the WAMZ economies to external shocks highlights
the need to build our economic and monetary union foundations on sound
macroeconomic fundamentals, for sustainable convergence.

The West African Monetary Zone (WAMZ) economies continued to be challenged by

global developments as evidenced in the performance of key macroeconomic
indicators during the review period. Real GDP growth rates declined substantially in
all but two of the WAMZ countries, slightly worsening the contraction in the overall
zonal growth rate observed in 2015. Inflationary pressures heightened in the Zone, as
all of the Member States except Ghana, registered increase in inflation, with four of
them recording double-digit inflation rates. Fiscal consolidation was delayed in 2016,
as imbalances remained significant, and in most member states widened. Public
sector debt has been on the rise in the Zone, both in nominal terms and as a
percentage of GDP, with two members exceeding the 70 percent of GDP threshold,
owing to huge primary deficits. With firmer commodity prices at the end of the review
period, the process of rebuilding stock of foreign reserves commenced in most of the
member countries with increases in exports, thereby improving their months of
imports cover. On the downside, the depreciation of most of the WAMZ currencies,
worsened against the US dollar during the period under review.

ix
In 2016, the WAMZ banking industry remained stable in spite of the macroeconomic
challenges across member states. Banking Supervision and Regulation under the
guidance of the WAMZ College of Supervisors (CS-WAMZ) continued to register
significant progress and transformation both in terms of implementation of
institutional and legal reforms, as well as deepening the regional financial integration
process. The implementation of the Payments System Development Project, funded by
the African Development Bank (AfDB) was successfully completed in The Gambia,
Guinea, Liberia and Sierra Leone, during the review period.

I wish to take this opportunity to express my gratitude to the Authority of Heads of

State and Government of the WAMZ, the members of the Convergence Council and
Committee of Governors for their steadfast support and guidance to the WAMZ
programme. My deep appreciation goes to our development partners, especially the
African Capacity Building Foundation and the African Development Bank, the
organised private sector and all other stakeholders for their assistance and
cooperation during the year. Finally, I sincerely thank the Management and Staff of
WAMI for their commitment and support towards the achievement of the Institute’s
mandate.

Dr. Abwaku Englama

Director-General, WAMI

x
 CHAPTER ONE
GENERAL OVERVIEW
1.1 Developments in the Global
Economy
G
lobal growth remained sluggish
in 2016, despite the increased
momentum in economic
activity during the second half of the
year, on the back of partial commodity
price recovery. Real GDP was thus
estimated at a lower growth rate of 3.1
percent in 2016, compared to the
revised real GDP growth of 3.4 percent
in 2015. The slowdown in growth can
be attributed to a number of factors
among which were structural
impediments; such as low productivity
growth and high income inequality,
United Kingdom‟s referendum result
to leave the European Union (Brexit)
and weaker-than-expected growth in
the United States (US). The continued
rebalancing of the Chinese economy,
commodity price shocks in low income
countries and fiscal policy tightening
in most advanced economies, as well
as geopolitical tensions and other non-
economic factors especially in some
parts of the Middle East and Africa,
also contributed to the growth decline.
Growth in the Advanced Economies
declined to 1.7 percent from 2.1
percent in 2015, driven largely by
slower growth in all but the “Other
Advanced Economies” in the bloc.
Real GDP in the US decelerated to 1.6
percent in 2016, largely on account of
weakness in investments, reflecting the
appreciation of the US dollar, reduced
spending in the energy sector, as well
as financial market volatilities and
recession uncertainties. In the Euro
1
area, real GDP slowed to 1.7 percent
from 2.0 percent, owing mainly to
deceleration in domestic demand,
which can be attributable to a
reduction in business confidence,
emanating from the “Brexit” vote.
Likewise, Japan experienced a 0.2
percentage point reduction in growth,
partly as a result of weaker external
demand and corporate investment. On
the other hand, growth in the Other
Advanced Economies, which excludes
US, the Euro Area and Japan, slightly
strengthened to 2.0 percent in 2016,
owing to increased growth in some of
the economies in the group. However,
growth in the United Kingdom slowed
to 1.8 percent in 2016, largely owing to
the post-referendum effects on
manufacturing activity.
The emerging market and developing
economies, which accounted for the
bulk of global growth, recorded a
marginal decline in growth, mainly due
to the macroeconomic challenges faced
by commodity exporting countries
particularly during the first half of
2016. Growth moderated in China to
6.7 percent from 6.9 percent in 2015,
partially owing to the continuing
transition of the economy from an
investment-led to a consumption-led
growth model. Similarly, emerging and
developing Asia recorded decrease in
growth and in India, growth slowed to
6.8 percent from 7.9 percent in 2015.
Growth in the Middle East and North
Africa (MENA) region, however,
strengthened by 1.2 percentage points
in 2016, driven largely by uptick in oil
prices towards the end of the year.
In the Commonwealth of Independent
States (CIS), real GDP grew by 0.3
percent compared to a contraction of
2.2 percent in 2015, reflecting the
gradual exit of Russia from recession,
easing financial conditions leading to
improved investors‟ confidence and
domestic demand, and stronger oil
prices. Alternatively, real GDP growth
in Sub-Saharan Africa decelerated to
1.4 percent from 3.4 percent in 2015,
as the economies adjusted to the
relatively lower commodity revenues,
and continued to be challenged by high
debt levels as well as domestic
conflicts.
During the review period, inflation
developments globally, had been
heterogeneous. In the advanced
economies, inflation increased to 0.8
percent from 0.3 percent in 2015, as
the drag from lower commodity prices
diminished. All the economies
experienced higher inflation, with the
exception of Japan which recorded
deflation owing partly to weaker
external demand. In the emerging
market and developing economies,
however, inflation declined to 4.4
percent from 4.7 percent in 2015, as
exchange rates remained broadly stable
in most of the countries and in some
cases, appreciated. Inflationary
pressures intensified in Sub-Saharan
Africa, as the CPI rose to 11.4 percent
from 7.0 percent in 2015, mainly as a
result of the pass-through effects of the
oil price increase, as well as exchange
rate depreciation associated with the
earlier drawdown in commodity prices.
Foreign exchange developments
indicated that in 2016, the US dollar
strengthened against most of the major
advanced economies‟ currencies,
compared to 2015. Against the pound
2
sterling, the US dollar appreciated to
US$1.23/£ at the end of 2016 from
US$1.48/£ at the end of 2015.
Likewise, relative to the Euro, the US$
appreciated to US$1.05/€ as at end
December 2016 from US$1.09/€ as at
end December 2015. On the other
hand, the US dollar weakened against
the Japanese Yen to JPY116.8/US$ as
at end 2016 from JPY120.5/US$ as at
end 2015.
Monetary policy was generally neutral
in most of the advanced economies in
2016. However, some of the
economies including the US, adopted
tight monetary policy stance during the
second half of the year, in tandem with
suggested future inflationary pressures
resulting from stronger demand.
Short-term interest rates were raised by
the US Federal Reserve in December
2016 and long-term interest rates
significantly increased since August
2016. Similarly, there were increases
in long-term interest rates in the UK,
Germany and Italy. On the contrary,
monetary policy stance was broadly
mixed in the emerging and developing
economies; with rise in interest rates in
Turkey, Mexico and emerging Europe
whist interest rate cuts were
experienced in Brazil, India and
Russia, among others.
In the advanced financial markets,
especially the equity markets, marked
development was recorded in the midst
of stronger consumer confidence and
positive macroeconomic outlook.
Likewise, equity markets in the
emerging market economies showed
strong recovery, on the aftermath of
the downturn in financial conditions
following the US elections.
Crude oil prices strengthened during
the second quarter of 2016, maintained
an upward trend throughout the
remaining months and reached
US$52.6 per barrel as at end-
December 2016, from US$ 36.6 per
barrel at the end of 2015. The price
increase was consistent with the
involuntary reduction in oil production,
pick-up in economic activity and
projected stronger global demand. The
average price of gold reached a peak of
US$1,340.2 in August 2016, gradually
declined to US$1,157.4 per troy ounce
in December 2016, but still higher than
the US$ 1,068.3 per troy ounce
registered in December 2015. In the
same vein, iron-ore prices almost
doubled from an all-time low of
US$40.9 per metric tonne in December
2015 to US$79.4 per metric tonne in
December 2016. The development in
metal prices was backed by a
slowdown in China‟s transition efforts,
increased investment in real estate, and
the expectations of fiscal policy easing
in the US. The price of cocoa in the
international market, on the other hand,
plummeted to US$2,295.3 per metric
tonne in 2016, from US$3,345.7 in
2015, on the backdrop of decreased
demand amidst excess supply.
1.2 Macroeconomic Developments in
the WAMZ
Economic growth in the WAMZ was
hampered during the review period,
largely by the lingering effects of the
declining commodity prices. Inflation
pressures worsened in the Zone, as
most of the Member States registered
double-digit inflation rates, and the
Zonal end-period inflation increased.
The thrust of fiscal policy was aimed at
consolidating public finances and
contain fiscal deficits within the
prescribed WAMZ benchmark.
3
Although the overall fiscal deficits
(including and excluding grants) for
the Zone were within the ECOWAS
threshold, three of the countries
recorded fiscal deficits in excess of the
3.0 percent threshold. Monetary
targeting framework continued to be
implemented in all Member States,
except Ghana and Liberia that
employed inflation and exchange rate
targeting, respectively. The external
sector indicated better performance
compared to 2015, as the Zonal stock
of foreign reserves as well as the
months of imports-cover increased,
and the overall balance of payments
position of all the countries improved.
Foreign exchange market
developments were however not
encouraging, as the depreciation of all
but one of WAMZ Member States
currencies worsened against the dollar.
Real GDP growth moderated in The
Gambia to 2.2 percent in 2016 from
4.3 percent in 2015, mainly due to
limited supply of foreign exchange,
adverse weather conditions and
uncertainties surrounding the general
elections. Growth in 2016 was led by
the services sector at 68.0 percent,
followed by the agriculture sector at
21.6 percent and the industrial sector at
14.4 percent. The end-period inflation
rate increased to 7.9 percent from 6.7
percent in 2015, due largely to food
price increases and increased growth in
monetary aggregates. Fiscal deficit
(including grants) and fiscal deficit
(excluding grants) as a percentage of
GDP were 9.5 percent and 11.2 percent
in 2016, higher than the deficit of 6.3
percent and 8.1 percent in 2015
respectively. Broad money grew by
15.3 percent, compared to a
contraction of 0.9 percent in 2015,
resulting mainly from the increase in
net domestic assets (NDA). Reserve
money grew by 25.2 percent in 2016,
higher than the 10.0 percent growth in
2015. The overall balance of payments
recorded a deficit of US$12.6 million
(1.3 percent of GDP) in 2016,
compared to a surplus of US$62.0
million (6.2 percent of GDP) in 2015.
Gross external reserves declined to
US$59.8 million (2.4 months of
import-cover) from US$76.0 million
(2.5 months of import-cover) in 2015.
The dalasi depreciated against all
major traded currencies; 9.7 percent
against the US dollar, 10.6 percent
against the pound sterling, and 9.2
percent against the euro.
During the review period, growth was
sluggish in Ghana, as the real GDP
growth declined to 3.5 percent from
3.8 percent in 2015, mainly on account
of contraction in the production of oil
and gas. The services sector remained
the largest contributor to GDP,
accounting for 56.9 percent in 2016,
followed by Industry (24.2 percent)
and Agriculture (18.9 percent).
Inflationary pressures eased in 2016 as
the end-period rate dropped to 15.4
percent from 17.7 percent at the end of
2015, largely on account of slowdown
in the depreciation of the cedi,
moderation in fuel price increases as
well as improvement in energy. The
overall fiscal deficit on commitment
basis (including grants) in 2016
increased to 10.4 percent of GDP, from
4.8 percent in 2015, and that of
excluding grants rose to 11.1 percent
of GDP from 6.7 percent the previous
year. Broad money grew by 22.0
percent in 2016, compared to 26.1
percent in 2014, owing mainly to
decline in NDA. Reserve money
growth increased to 29.6 percent in
2016 from 24.2 percent in 2015. The
4
overall balance of payments improved
to a surplus of US$247.4 million in
2016 (0.6 percent of GDP) from a
deficit of US$15.9 million (0.04
percent of GDP) in 2015, mainly due
to improvement in the trade balance.
Gross external reserves increased to
US$4.9 billion (4.2 months of import-
cover) from US$4.4 billion (3.6
months of import-cover) in 2015. As at
end-December 2015, the official cedi-
to-dollar nominal exchange rate
depreciated by 9.2 percent.
In Guinea, real GDP growth increased
to 5.2 percent in 2016, from 4.5
percent in 2015, attributable to
improved performance in mining, trade
and agriculture sectors. The primary
sector contributed 0.7 percent to the
GDP growth in 2016, the secondary
and tertiary sectors contributed 2.2
percent and 1.8 percent respectively
and customs duties and taxes
contributed the remaining 0.6 percent.
As at end-December 2016, inflation
increased to 8.7 percent from 7.3
percent a year ago, largely due to
depreciation of the Guinean franc and
increase in VAT. In 2016, the overall
fiscal deficit (excluding grants)
decelerated to 1.3 percent of GDP from
7.4 percent of GDP in 2015. In the
same vein, the deficit (including
grants) declined to 0.2 percent of GDP,
from 6.9 percent in 2015. Broad
money growth moderated in 2016 to
9.9 percent, compared to 20.3 percent
in 2015, owing largely to lower growth
in NDA. The overall balance of
payments improved significantly from
a deficit of USD499.8 million (5.7
percent of GDP) in 2015 to a deficit of
USD0.8 million (0.01 percent of GDP)
in 2016, mainly owing to improvement
in the financial account. Gross external
reserves increased to USD614.7
million in 2016, from USD465.4
million in 2015. However, in terms of
months of import cover, external
reserves declined to 1.4 months in
2016 from 2.3 months in 2015. The
GNF depreciated against the US dollar
in both the official and parallel markets
by 13.2 percent and 9.7 percent
respectively.
In 2016, real GDP growth in Liberia
contracted by 0.5 percent from zero
percent growth in 2015, due mainly to
reduction in gold and iron-ore mining.
In terms of contribution to the growth
rate in 2016, the primary sector
contributed 0.8 percent, the secondary
sector -3.1 and the tertiary sector 1.8
percent. The rate of inflation increased
to 12.5 percent at end-December 2016
from 8.0 percent at end-December
2015, partly driven by the depreciation
of the Liberian dollar. The overall
fiscal balance (excluding grants)
recorded a surplus of 0.6 percent of
GDP against a deficit of 0.8 percent of
GDP in 2015. Including grants, the
fiscal surplus increased to 2.2 percent
of GDP from 1.6 percent of GDP in
2015. Broad money grew by 10.0
percent, lower than the 12.9 percent
growth in 2015, driven largely by
decrease in NDA growth. Reserve
money growth was 14.7 percent in
2016, compared to a contraction of 1.4
percent in 2015. In 2016, the overall
balance of payments registered a
deficit of US$182.8 million (8.7
percent of GDP), relative to a deficit of
US$182.2 million (8.9 percent of
GDP) in the preceding year. Gross
external reserves increased to
US$536.3 million (3.2 months of
import-cover) from US$509.3 million
(2.3 months of import-cover) in 2015.
The Liberian dollar depreciated against
5
the US dollar by 13.7 percent as at the
end of 2016.
In Nigeria, real GDP contracted by 1.5
percent in 2016, from 2.8 percent
growth in 2015, mainly owing to the
decline in oil prices, as well as
structural, fiscal and security
challenges. The services sector
continued to account for the largest
proportion of the overall real GDP
(36.9 percent), followed by agriculture
(24.4 percent), industry (17.8 percent),
trade (17.2 percent) and construction
(3.7). Inflationary pressures intensified
in 2016, leading to an end-period
inflation of 18.6 percent from 9.6
percent in 2015, largely on account of
structural challenges especially high
electricity and transport cost, and the
insurgency in the North-East. The
overall fiscal deficit worsened to 2.2
percent of GDP in 2016 from 1.7
percent in 2015. Broad money growth
declined to 18.3 percent in 2016, from
19.1 percent in 2015, explained by
decrease in NDA growth. On the other
hand, reserve money grew by 0.3
percent, relative to a contraction of 2.0
percent registered in 2015. The overall
balance of payments recorded a deficit
of 0.2 percent of GDP in 2016, an
improvement, when compared to a
deficit of 1.2 percent of GDP in 2015.
Gross external reserves declined to
US$26.9 billion (8.2 months of import
cover) in 2016, from US$ 28.3 billion
(5.8 months of import cover) in 2015.
The naira depreciated against the US$
by 35.5 percent at the interbank market
segment and by 45.5 percent at the
Bureau-de-Change.
During the period under review, Sierra
Leone recorded a real GDP growth of
6.1 percent, compared to a contraction
of 20.5 percent in 2015, due largely to
the resumption of iron-ore mining
activities and the gradual pickup in
commodity prices. Industry
contributed the greater percentage of
2.2 percent to the growth in 2016,
followed by agriculture (2.0 percent),
services (1.7 percent) and taxes (less
subsidies on products) contributed the
remaining 0.2 percent. The end-period
inflation accelerated to 17.4 percent in
2016, from 8.9 percent in 2015, partly
driven by the depreciation of the leone.
The overall budget deficit (excluding
grants) increased to 10.7 percent of
GDP in 2016, from 9.7 percent in
2015. Including grants, the deficit also
increased to 7.7 percent of GDP, from
4.3 percent in 2015. Broad money
grew by 16.5 percent as at end-
December 2016, compared to 11.3
percent a year ago, largely explained
by an increase in NFA. Reserve money
growth increased significantly to 24.5
percent from 10.4 percent at end-
December 2015. The overall balance
of payments deficit narrowed to 1.8
percent of GDP from 2.5 percent of
GDP in 2015. Gross external reserves
declined to US$503.8 million,
equivalent to 5.3 months of imports in
2016, from US$580.3 million,
equivalent to 4.6 months of imports in
2015. The leone depreciated against
the US dollar (Le/US$) by 21.6 percent
as at end-December 2016.
1.3 Macroeconomic Convergence
and Policy Harmonisation in the
WAMZ
Member States‟ performance on the
Rationalised ECOWAS primary
convergence criteria worsened relative
to 2015, as none of the Member States
satisfied all four of the primary criteria
in 2016. Guinea, Liberia and Nigeria
satisfied three each, while The
6
Gambia, Ghana and Sierra Leone
satisfied one each.
The Gambia met one primary
criterion namely: single digit inflation
and missed three - the budget
deficit/GDP including grants, central
bank financing of government fiscal
deficit as a percentage of previous
year‟s tax revenue and gross external
reserves. Ghana satisfied one
criterion, namely: gross external
reserves in months of import. The three
criteria missed were single digit
inflation, fiscal deficit including grants
and central bank financing as a
percentage of previous year‟s tax
revenue.
Guinea attained three primary criteria
namely, the single digit inflation, fiscal
deficit including grants and central
bank financing of fiscal deficit, but
missed the gross external reserves in
months of imports criterion. Liberia
satisfied three primary criteria: fiscal
deficit including grants, central bank
financing and gross external reserves
in months of imports. The country,
however, missed the criterion on
single-digit inflation.
Nigeria met three of the primary
criteria, namely: fiscal deficit as a
percentage of GDP, central bank
financing and gross external reserves,
but missed the single-digit inflation
criterion. Sierra Leone achieved the
criterion on gross external reserves in
months of import cover, and missed
the single-digit inflation, central bank
financing of government fiscal deficit,
as well as the fiscal deficit (including
grants) as a percentage of GDP criteria.
Member States‟ performance on the
secondary criteria deteriorated
compared to 2015, as none of the
countries attained both criteria. The
Gambia and Ghana satisfied the
criterion on exchange rate variation,
while Guinea, Liberia, Nigeria and
Sierra Leone satisfied the public debt
to GDP ratio criterion.
Intra-WAMZ trade improved and
Member States continued to implement
the ECOWAS trade-related protocols
as well as conventions in 2016.
Implementation of the ETLS improved
during the review period, as the
number of approvals granted increased
and complaints reduced. Nigeria and
Ghana continued the implementation
of the ECOWAS CET, The Gambia,
Guinea and Liberia were set to
commence implementation in 2017,
while Sierra Leone was at an advanced
stage of preparedness. All the WAMZ
countries continued to observe the
visa-free movement of ECOWAS
citizens, and also a 90-day stay without
residential permit, while the right to
establish was being selectively applied
across the Zone.
The WAMZ Payments System
Development Project (PSDP) in The
Gambia, Guinea, Liberia and Sierra
Leone was successfully completed in
2016. During the review period, The
Gambia continued to make steady
progress in creating a cashless
economy with the aid of the PSDP. In
addition to its leading role in financial
inclusion, Gamswitch, the National
Payment Switch of The Gambia was
interfaced with the Real Time Gross
Settlement (RTGS) to facilitate daily
settlements. In Guinea, the
implementation of the two outstanding
PSDP components, RTGS and
Scriptless Securities System (SSS) was
completed in 2016. Plans were
7
underway by the Central Bank for the
establishment of a National Switch.
The implementation of the RTGS/SSS
which was scheduled for January 2016
was completed in Liberia, and in
addition to the Core Banking
Application (CBA), Automated
Clearing House (ACH) and Automated
Cheque Processing (ACP), went live in
2016. The Central Bank of Liberia in
collaboration with other stakeholders
introduced the National Shared Switch,
developed the Payment Systems Rules
and facilitated payment of government
taxes through the RTGS. In Sierra
Leone, the Central Bank in partnership
with other stakeholders in the National
Payments System Committee (NPSC)
continued to monitor and manage the
PSDP. In 2016, the launching of the
mobile money guidelines and
implementation of a National Switch to
enhance the move to a cashless society,
were at advanced stages. In addition,
the Bank introduced the automation of
staff salaries and reconciliation,
employing the PSDP platform.
Considerable progress was made in the
Payments System of Ghana, during
the review period. The Ghana
Interbank Payments Settlement System
(GIPSS) continued to provide the
platform for high value payments for
the banks and their customers. The
number of institutions connected to the
National Switch (Gh-link) as well as
the number of transactions on the
platform increased. With the
introduction of the guidelines on
electric-money, the mobile money
space expanded. Nigeria strengthened
its efforts to ensure reliability and
efficiency of the Payments System.
Some of the key reforms in 2016
include the establishment of an e-
payment and Card Crime Unit of the
Nigerian police, approval of the draft
Payments System Management Bill for
subsequent enactment into law by the
National Assembly, approval granted
in principle to two Financial Service
Providers, to operate as Super Agents,
guidelines introduced for the smooth
operations of Treasury Single Account
and several initiatives adopted to
ensure successful completion in the
implementation of the Bank
Verification Number in Nigeria.
Marked improvement continued to be
recorded in the implementation of the
Basel Core Principles (BCPs),
International Financial Reporting
Standards (IFRS), Risk-Based
Supervision (RBS), Basel II & III, as
well as the Valtech Regulatory
Compliance System (V-RegCoss)
banking supervision processes in the
WAMZ in 2016, The WAMZ banking
industry remained relatively sound and
safe in 2016, despite the unfavourable
macroeconomic condition. The
banking industry in The Gambia
remained adequately capitalised, as all
the banks met the minimum capital-
adequacy ratio. Capital and reserves, as
well as total assets of the industry
increased. On the other hand, the
industry‟s profitability declined and
the asset quality deteriorated. Ghana’s
banking industry recorded
improvement in the financial
soundness indicators as total assets
increased, and the minimum capital
requirement was met. Profitability
declined but remained strong, while
the asset quality deteriorated. The
banking industry in Guinea was
relatively sound and stable in the
review period. The total assets of the
industry increased, eleven out of the
fifteen banks met the minimum capital
requirement, the overall liquidity
8
position improved, while the asset
quality deteriorated. The industry,
however, remained profitable, though
the Return on Equity (ROE) and
Return on Assets (ROA) declined. The
banking industry in Liberia recorded
marked improvement during the
review period. The capital base and
liquidity position of the industry
remained strong, profitability increased
and the asset quality also improved.
The Nigerian banking industry
registered weak performance in 2016,
but remained resilient. All the capital
adequacy indicators declined, and the
overall liquidity position as well as the
asset quality of the banking system
weakened. The total assets of the
banking sector in Sierra Leone
recorded increase in 2016, the capital
adequacy ratio (CAR) was above the
threshold, overall liquidity position
was strong, profitability increased and
asset quality also improved.
The WAMZ insurance sector during
the review period was adversely
affected by the depreciation of member
countries‟ currencies. Pension funds
continued to be key financial sector
players in the WAMZ, acting as
intermediaries for long term funds.
However, with the unfavourable
macroeconomic climate across
member states, especially the
deterioration in the value of the Naira,
total assets of pension funds declined
in 2016.
The Ghana and Nigeria capital markets
were challenged in 2016 by the
adverse economic environment,
leading to weak performance.
Activities in the Sierra Leone Stock
Exchange (SLSE), however, picked up
as two more companies were listed.
The West African Capital Market
Integration Council (WACMIC)
continued to encourage on-going
efforts to establish capital markets in
The Gambia, Guinea and Liberia.
1.4 Activities of the West African
Monetary Institute
The work programme of the Institute
in 2016, continued to be guided by the
“Abuja Road Map” in line with its
Strategic Plan, which is made up of
five pillars namely: Macroeconomic
Convergence and Statistical
Harmonization; Trade and Regional
Integration; Financial Integration,
Payments Systems Infrastructure; and
Institutional and Capacity Building.
1.4.1Multilateral surveillance and
statistical harmonization
During the period under review,
WAMI in collaboration with the
ECOWAS Commission and the West
African Monetary Agency conducted
two multilateral surveillance missions
in each of the six Member States of the
WAMZ in April and September 2016,
to assess their macroeconomic
performance as well as the status of
their compliance with the WAMZ
convergence criteria and other
structural benchmarks. Member States‟
progress on the Payments System
Development Project as well as their
compliance with required standards set
under its Statistical Harmonization
agenda continued to be monitored by
the Institute in 2016.
1.4.2 Trade and Regional Integration
i. The 14th Meeting of the
ECOWAS-WAMI Joint Task
Force (JTF) on trade was
hosted by the ECOWAS
Commission in Abuja, Nigeria
from February 16 to 19, 2016
to review the JTF report of the
9
13th meeting, update the
construction of the WAMZ
Trade Integration Index, to
discuss the outcome of the
2015 Trade Ministers‟ Forum
and other trade-related issues.
ii. WAMI hosted the 15th
Meeting of the ECOWAS-
WAMI Joint Task Force (JTF)
on issues related to trade in
Accra, Ghana from November
29 to December 1, 2016 to
review the report of the 14th
meeting and follow up on
issues deliberated at the
previous meeting, including the
construction of the WAMZ
trade integration index.
iii. WAMI participated in the 8th
Session of the WAMZ Trade
Ministers Forum, which was
held in Monrovia, Liberia. The
theme of the Forum was
“Opportunities for
Development through Regional
Trade Integration”.
1.4.3 Financial Integration
The Institute organized four meetings
of the College of Supervisors of the
WAMZ;
Organised the Expert Committee
Meeting on Quoting and Trading in
WAMZ currencies; and
Participated in the Technical
Committee Meetings of West African
Capital Markets Integration Council
(WACMIC).
1.5 Statutory Meetings
The Institute organized the following
statutory meetings in Accra, Ghana in
January 2016 and in Conakry, Guinea
in August 2016:
 i. Meetings held in Accra,
Ghana: The 38th Meeting of
the Technical Committee, the
32nd Meeting of the
Committee of Governors and
the 35th Meeting of the
Convergence Council of
Ministers and Governors of
Central Banks of the WAMZ
were held to discuss the status
of implementation of the
WAMZ Work Program, in line
with the technical documents
prepared by WAMI, to consider
the report of the Technical
Committee, and to consider the
report on the Committee of
Governors respectively.
ii. Meetings held in Conakry,
Guinea: The 39th Meeting of
the Technical Committee, the
33rd Meeting of the Committee
of Governors and the 36th
Meeting of the Convergence
Council of Ministers and
Governors of Central
iii. Banks of the WAMZ were held
to deliberate on the status of
implementation of the WAMZ
Work Program. Technical
documents prepared by WAMI
formed the basis of the
10
discussions, to consider the
report of the Technical
Committee, and to
iv. Consider the report on the
Committee of Governors,
respectively.
1.6 Institutional and Capacity
Building
Under the African Capacity Building
Foundation (ACBF) sponsored project,
staff participated in various training
workshops both in-house and abroad in
the review period. Training
programmes were also organised for
staff from central banks and Ministries
of finance of Member States, and study
visits to Member States conducted.
1.7 Publications
In 2016, the Institute published the
Financial Stability Report, 2015
Annual Report, two editions of the
West African Journal of Monetary and
Economic integration (WAJMEI),
three Occasional Paper Series (OPS),
the WAMZ Trade Integration Report
and a book titled “Obstacles to Trade
in the West African Monetary Zone
(WAMZ): Promoting integration in the
WAMZ.”
 CHAPTER TWO
INTERNATIONAL MACROECONOMIC DEVELOPMENTS
2.1 Introduction
T he global macroeconomic space
was highly strained in 2016 on
account of several shocks
including the Brexit, an unprecedented
tension-soaked political activities in
the US, and pockets of sectarian strife
in various regions of the world, notably
the Middle East. The shocks
constituted significant headwinds to
economic activities as global growth
slowed down to 3.1 percent from 3.4
percent in 2015, with the drag being
exceptionally significant in emerging
and developing market economies.
Growth lost momentum in developed
economies on the backlash of
weaknesses in industrial production,
retrenchment in trade volume, and the
attendant buildup in inventories which
were further complicated by the legacy
of the global financial crisis in most of
the countries. The downside risks
appeared significantly skewed against
the emerging and developing
economies. Apart from China where
growth was fairly strong due to robust
policy support that mitigated the
adverse impact of the rebalancing
model, economic activity remained
soft in other key emerging market
economies due to variety of reasons.
Growth was soft in India owing mainly
to sharp movements in currency while
Brazil was still grappling with
recession. Similarly, growth witnessed
considerable slowdown in both fuel
importing and exporting countries
while geo-political conflicts posed
considerable drag in the Middle East
and Turkey.
11
Against the trend in the last couple of
years, global inflation commenced an
uptick in 2016 as consumer price
inflation inched to 2.9 percent from 2.8
percent in 2015. A major driver of the
new trend was the increase in
commodity prices cum their growing
importance as intermediate input in
production process. Inflation pressures
resurfaced in most of the advanced
countries as labor market conditions
firmed up coupled with the narrowing
of output gap. For most of the
emerging and developing economies,
inflation pressure was fuelled largely
by depreciation of currencies as well as
structural constraints which
overwhelmed the moderating effect of
slack in consumer demand. In terms of
components, headline inflation was the
main driver in both the advanced and
emerging economies while core
inflation remained virtually
unchanged.
Relative to the previous year, global
fiscal balance showed a marked
deterioration in 2016 across the globe,
largely informed by the need for
policymakers to provide swift support
for the recovery agenda. Public debt
ratios became elevated in most
countries especially in emerging
market and middle-income countries,
where the fiscal deficit ratio exceeded
the levels at the initial phase of the
global financial crisis. The adverse
condition was extremely precarious for
commodity exporters even as
cumulative fiscal balance is still
expected to deteriorate in these
economies over the next five years
compared to the 2004-2008 era. Apart
from the adverse impact of softening
commodity prices, fiscal balances in
developing and emerging market
economies equally suffered from tight
and volatile financial market condition,
which exerted upward pressure on
interest rates in the face of rising gross
financing needs.
A remarkable development in global
monetary policy during the review
period was the commencement of
synchronization of policy stance across
the globe after a prolonged era of
divergence in policy stance. The US
Federal Reserve commenced a gradual
normalization of monetary policy in
late 2015 which was further
strengthened in 2016, after a fairly
long period of policy rate around zero
bound. Most other systemic important
central banks like Bank of England
equally maintained a tightening mode.
A probable exception was the Bank of
Japan in view of the need to provide
support to the process of recovery from
one of the worst recessions in the
nation‟s history. As expected, the
spillovers extended to emerging
market and developing economies
where most had to contend with
heightened challenges of capital
outflow and attendant depreciation of
domestic currencies.
Most of the global currencies
experienced considerable volatility
during the review period mainly due to
structural rigidity particularly the
continued reliance on US dollar as
reserve currency. This singular
phenomenon led to exchange rate
disconnect in many countries as
considerable deviation emerged
between exchange rate movement and
underlying economic fundamentals in
most economies. Thus, as the US
12
Federal Reserves strengthened the
normalization process, many global
currencies shed considerable weight
against the US dollar during the period,
including, the Euro, Pound Sterling
and Chinese Reminibi. Other factors
like cyclical nature of investors‟
sentiment, pervasive economic,
financial, and geo-political shocks also
contributed to sharp swings in
currencies during the period.
Notwithstanding the tepid growth in
economic activities, commodity prices
experienced some level of rally
particularly in the latter half of 2016.
Crude oil prices increased by about 20
percent as uptick in demand from the
advanced economies was reinforced by
restraint in supply by the Organization
of Petroleum Exporting Countries
(OPEC). Non-fuel commodities also
showed an upward trend as metal
prices increased by about 23 percent
while prices of agricultural
commodities increased by about 4
percent.
2.2 Developments in Output and
Prices
2.2.1: Output Developments
Growth in global output in 2016 was
challenged by a number of headwinds
including the referendum by the UK to
exit Euro area (Brexit), exceptionally
intense electoral activities in the US,
rebalancing model in China, protracted
declining terms of trade for commodity
exporters, and non-economic factors
such as pockets of conflicts in various
regions of the world particularly in the
Middle East. These shocks
considerably weighed on economic
activities as global growth slowed
down from 3.4 percent in 2015 to 3.1
percent in 2016.
In the advanced economies, growth
decelerated on account of complex
interaction of the aforementioned new
shocks with age-long forces like slow
moving trend, declining productivity
on account of weak demographic
profile, and subdued post financial
crisis recovery. In the US, although a
pickup in activities could be observed
in the latter half of 2016, the positive
effects were not sufficient to
completely reverse the downturn
caused by the lackluster performance
in the early part of the year.
Output growth in the US softened to
1.6 percent in 2016 from 2.6 percent in
2015 due to myriad of factors
including weakness in business fixed
investments, decline in capital
spending in the energy sector, low non-
farm productivity, and the effect of the
new strength in dollar with the
attendant financial market volatility.

Figure 1: World Output Growth, 2010 - 2016

6

2
Percentage Growth

0
2010 2011 2012 2013 2014 2015 2016
-2

-4

-6

-8

-10

-12

Private Consumption Public Consumption Gross Fixed Capital Formation

13
Growth in the Euro area declined to
1.7 percent in 2016 mainly due to ease
in domestic demand particularly local
investments while in the UK there was
a slight deceleration in output from 2.0
percent in 2015 to 1.8 percent in 2016
largely due to sharp post referendum
retrenchment on manufacturing
activity. Other advanced economies
like Canada, Japan, and Australia
equally witnessed considerable
softening of economic activities as a
result of adverse spillover from the
systemic important economies.
The risk factors appeared elevated for
emerging and developing economies
which in conjunction with persistent
low total factor productivity
contributed to intensification of
weaknesses in economic activities in
these economies. Apart from the
general factors that shaped
macroeconomic outturn in these
economies, some other country
specific risk factors were equally at
play. In India, the sharp swings in the
value of the domestic currency
continued to militate against robust
expansion in output while Brazil
continued to grapple with recession as
effects of past shocks like administered
price, declined commodity price, and
political uncertainty are yet to abate.
Russia is yet to fully recover from the
dual effects of oil price shocks and
sanctions even as the financial system
was just recuperating following the
repair carried out on the system with
public funds. Macroeconomic space in
Turkey was narrowed by the abortive
coup which heightened uncertainty
while economic activities in the
Middle East continued to be
challenged by subdued oil prices, geo-
political tension and civil conflicts in
most of the countries.
14
The condition in Sub-Saharan Africa
equally followed the dismal
performance of other developing
economies, with the highest severity
recorded in Nigeria where economic
activities were constrained by
resurgence of militancy in the Niger
Delta areas, shortage of foreign
exchange, electricity outage, and low
investors‟ sentiment. Growth was flat
in South Africa owing to subdued
domestic and external demand which
weighed heavily on both the mining
and manufacturing sectors. Although
some degree of resilience could be
observed in some countries like Kenya,
Senegal, Cote d‟Ivoire, and Tanzania,
the effects of economic expansion in
these countries were inadequate to
mitigate the negative spillovers from
key economies of the region.
2.2.2 Price Developments
Global inflation remained largely
subdued but unlike the continuous
downward trend over the last couple of
years, a pick up commenced in 2016
particularly in the advanced
economies. Inflation rate in the
advanced countries increased to 0.8
percent from 0.5 percent in 2015 on
the backdrop of reduced drag from
energy prices and shrinking output gap
although some levels of variation could
still be observed across these countries.
In the US, inflation accelerated from
0.1 percent in 2015 to 1.2 percent in
2016 reflecting a rapid waning of
disinflationary pressures and well
anchored medium term inflation
expectations. For the euro area,
inflation equally commenced an
upward trend, although at a slower
pace, inching to 0.3 percent in 2016
from an almost zero level in 2015,
mainly due to reduction in output gap,
while the depreciation of the pound
sterling contributed substantially to
inflation pressure in UK during the
period. For other advanced economies
like Switzerland which were still in
disinflation mode, the degree of the
deflation appeared mild during the
period.
Inflation pressures were much more
pronounced in emerging and
developing economies during the
review period. In key emerging
Figure 3: World Inflation Rates: 2010 - 2016
economies like Brazil, Russia, Turkey
and Mexico, inflation exceeded central
bank‟s target on account of the pass
through effect of exchange rate
depreciation while it increased to 2.1
percent in China as slack in the
industrial sector diminished. For most
sub Saharan Africa countries, inflation
returned to double digit as a result of
the pass through effect of sharp
depreciation of domestic currencies.
2.2.3 Financial Market
Developments:
The global financial market exhibited a
fair degree of resilience in 2016,
reflecting gradual reversal of negative
15
sentiments that characterized the
financial landscape in the past three
years. The development was largely
propelled by the conditions in the
advanced economies. In the US,
confidence in the financial market
firmed up on account of positive
outlook, expectation of fiscal stimulus,
and higher infrastructure spending. The
development, however, increased the
upside risks to inflation and invariably,
reinforced the need to accelerate the
pace of monetary policy normalization
by the Federal Reserve (Fed).
Consequently, the Fed commenced a
tight monetary policy stance in the
latter part of the year by increasing the
policy rate by 0.25 percent. Reflecting
the direction of policy stance, both
long-term nominal and real interest
rates increased substantially
particularly after the presidential
election. Similarly, long term rates
increased significantly in the UK,
reflecting contagion from the US and
market expectation of restrictive
monetary policy on the heels of rising
inflation pressure. The increase in long
term yield was however, moderate in
the core euro area, except in Italy due
to elevated political and banking sector
uncertainties. Unlike the advanced
economies, financial market conditions
in emerging economies remained
diverse. Policy rate was increased in a
number of countries including Mexico
and Turkey while it was reduced in
countries like Brazil, India, and Russia.
The diversity equally reflected in the
spread of the Emerging Market Bond
Index.
2.3 Developments in Commodity and
Currency Markets
2.3.1 Commodity Markets
A partial rebound in commodity prices
was recorded in 2016 in what appeared
as cyclical recovery in business
confidence. The IMF‟s Primary
Commodity Index increased by 22
percent with the rally being strongest
for fuel most especially for oil and
coal.
Crude Oil
Oil prices recovered from the
prolonged downward trend in mid-
2016 as the effect of abundant gas
supply from Russia and reduced
demand from Asia started to wane.
After softening to a 10-year low in
January, oil prices recorded a rally of
about 50 percent by mid-year,
increasing to about US$52.6/barrel in
December 2016. The prices of oil
equally received a boost from
production cut by OPEC members as
well as pickup in demand from the US
on account of stronger demand from
the power sector due to warmer than
expected weather.
16
Gold
Gold prices rallied to US$1,340 per
ounce in August 2016, which was
almost the highest level since the first
quarter of 2014. The development was
propelled mostly by safe-haven
demand due to heightened macro and
political uncertainty, notably the
apprehension associated with Brexit.
However, as the Fed commenced
monetary policy tightening in the latter
part of the year, most speculative
investors commenced a sell-off which
exerted a downward pressure on the
price but at a slower pace such that the
average price was still higher than the
level it was at end-December, 2015.
Iron Ore
The prices of iron ore defied market
expectations in 2016, rising to about
US$80 per ton, the first time to attain
such a peak since August 2014. The
rally was buoyed by strong demand in
the face of drastic cut in supply. The
reduction in supply was largely
informed by the shutdown of large
number of mining fields in China
hinged on shift in consumers‟
preference to higher grade iron ore
from Australia which is lower in
pollution rate and simultaneously
cheaper to process. It is however,
envisaged that the rally in price in
2016 reflected much of a spike as it
would attract more investors into the
sector and eventually increase the
supply base.
Cocoa
In contrast to the upward movement in
prices of fuel and metal items, cocoa
prices recorded a meltdown in 2016,
plummeting to a 4-year low owing to
abundant supply in the face of
weakening demand. Cocoa price
softened to $2,295.3 per metric ton
during the period, the lowest level
since March 2013. A bumper harvest
season from Ghana and Cote d‟ivoire
which are the leading world producers
contributed to supply glut during the
period. Demand, on the other hand,
was not only constrained by weak
recovery in global output but equally
by growing health consciousness on
chocolate consumption among
consumers, a slowdown in
discretionary spending, and marginal
product innovation.
2.3.2 Developments in Exchange
Rates
Relative to 2015, movements in
exchange rates were mild in 2016. In
17
real effective term, the US dollar and
the euro remained broadly unchanged
while in the advanced countries the
Japanese Yen appreciated by about 10
percent. The largest depreciation of
about 10 percent was recorded on
pound sterling mainly due to the
shocking Brexit vote. In the emerging
market economies, Chinese reminibi
continued to slide in value as it
depreciated by over 4 percent during
the period as a result of significant
capital outflow with the attendant loss
of foreign reserves. The currencies of
commodity exporting countries, like
the Russian ruble, Brazilian real and
South African rand experienced
relative degree of appreciation during
the period, reflecting the modest
recovery in commodities prices and
strengthening of financial market
sentiments.
2.4 Implications for the WAMZ
The slowdown in the global economy
posed considerable challenges to the
WAMZ in 2016, culminating in
deterioration of key macroeconomic
indicators in almost all the countries of
the zone. The issue of Brexit in
particular coupled with the evolving
stance of the new administration in the hit countries, Nigeria, resorted to
US led to a surge of interest in exchange rate restrictions to stem the
economic ideology of nationalism and depletion of external reserves.
protectionism with the attendant strong
The commencement of monetary
drag on global integration and trade
tightening in the US also portends
during the period. The immediate
further implication in global financing
impact of this development was a weak
conditions. Given the correlation of
global demand for the export
interest rates across the globe, interest
commodities of the zone which
rates may follow an upward trajectory
reinforced the downward swings in
in various international financial
business cycles that commenced
institutions which would adversely
around mid-2014 in most of the
impact on growth objectives of
countries.
WAMZ countries in view of their
heavy dependence on external
As a result, growth slowed down in
resources. Moreover, the adverse
most of the countries while Nigeria,
conditions in the global environment
the biggest economy of the zone, was
have far reaching implications on the
plunged into recession. Besides, the
resilience of the banking system within
commencement of monetary policy
the zone. The level of non-performing
normalization by the US Federal
assets has increased substantially
Reserve elicited reversal of investors‟
across the zone as a result of
sentiment against most of the emerging
weakening commodity exports with
economies currencies, leading to
the attendant slowdown in economic
reduction in capital inflow and
activity as well as build-up of
considerable pressure on the exchange
government payment arrears to
rate. As a consequence, all the
contractors which has restricted the
countries of the Zone witnessed
capacity of private firms to service
significant depreciation of their
their loans. In addition, the tight
currencies to help absorb external
monetary policy stance adopted by
pressure, leading to a slippage in
most of the countries to address the
exchange rate stability criterion across
imbalance in the external sector has
the zone. Besides, one of the severely
transmitted to higher interest rates with
severe implications on the quality of
assets of the banking sector.

18
 CHAPTER THREE
MACROECONOMIC DEVELOPMENTS IN THE WEST
AFRICAN MONETARY ZONE
3.1 Introduction
E conomic performance in the
WAMZ moderated in 2016,
mainly reflecting the drag in
global commodity prices. Despite the
gradual turnaround in prices towards
the end of the year, this was however,
insufficient to address the existing
macroeconomic imbalances, and some
of the member states registered
contraction in growth including
Nigeria, which accounts for almost
90.0 percent of the Zone‟s output. As
such, the Zone-wide real GDP
contracted by 0.8 percent in 2016 from
a growth of 2.6 percent in 2015.
Price stability continued to be the
thrust of monetary policy in all the
Member States and in 2016, monetary
policy stance across the zone was
generally tight, to contain inflationary
pressures. The Zonal average inflation
rate (end of period) increased to 16.7
percent in the review period, from 10.4
percent in 2015, and all member states
except two recorded double-digit
inflation rates.
Fiscal policy in member states broadly
focused on fiscal consolidation and
containing the deficit within the
prescribed WAMZ benchmark, in
2016. The overall fiscal deficit
(including grants) for the Zone
increased to 2.0 percent of GDP in
2016 from 1.2 percent in 2015. Three
of the member countries however,
registered high deficits of 9.5 percent,
10.4 percent and 7.7 percent reflecting
the decline in fiscal revenues resulting
19
from the volatility in global
commodity prices.
External sector policy was mainly
geared towards accretion of
international reserves and maintaining
exchange rate stability. Performance of
the external sector generally improved
in the review period with a reduced
current account deficit compared to
2015. In aggregate terms, however, the
stock of international reserves for the
Zone slightly declined to $33.6 billion
as at end-December 2016 from $34.3
billion in 2015, but increased in
months of import-cover to 6.5 months
from 5.2 months reflecting the decline
in imports. All the member countries,
except The Gambia and Guinea had
adequate reserves to cover three
months of imports as set by the
criterion. Foreign exchange markets
developments indicated that the
domestic currencies of all the Member
States depreciated against the US
dollar in 2016.
3.2 The Gambia
Real Sector
Activities in the real sector were
sluggish in 2016, as real GDP slowed
to 2.2 percent from a growth of 4.3
percent in 2015, owing to limited
availability of foreign exchange, the
adverse impact of the climate on
agriculture and the effect of the
political impasse on tourism during the
high season. In terms of sectorial
performance, agriculture grew at a
lower rate of 0.5 percent in 2016
compared to 3.8 percent in 2015 due to
intermittent dry spells experienced
during the rainy season which
invariably affected crop production.
The industrial sector contracted by 3.1
per cent compared to a growth of 8.2
percent in 2015, resulting from
slowdown in construction, mining and
quarrying activities. The services
sector, however, picked-up in the
review period and grew by 5.1 percent
compared to 3.7 percent in 2015,
owing to improvement in all the sub-
sectors.
Figure 6: Gambia: Sectoral Growth
Rates
Headline inflation trended upwards to
7.9 percent at end-2016 from 6.7
percent as at end-2015, mainly driven
by rising food prices and the rapid
increase in the growth of monetary
aggregates fueled by monetary
financing of the fiscal deficit. Food
inflation, which is the main driver of
headline inflation, edged-up by 90
basis points to 8.8 percent in December
2016, while non-food inflation
decreased by 130 basis points to 3.3
percent.
Fiscal Sector Developments
Government fiscal operations for 2016
indicated that total revenue and grants
amounted to D8.3 billion (19.7 percent
of GDP) compared to D8.2 billion (20
.6 percent of GDP) in 2015. On the
domestic revenue front, there was a
slight increase of 1.7 percent to D7.6
billion in 2016, mainly owing to
increase in tax revenue. Tax revenue
20
increased by 4.8 percent to D7.0
billion, higher than the outturn in 2015
but as a percentage of GDP declined to
16.2 percent, from 16.8 percent in
2015. Non-tax revenue, on the other
hand, declined by 23.3 percent to
D632.3 million and as a percentage of
GDP decreased to 1.5 percent from 2.1
percent in 2015. Grants disbursements
(projects) amounted to D707.6 million
(1.6 percent of GDP), slightly lower
than the project grants of D722.3
million (1.8 percent of GDP) recorded
in 2015.
Total expenditure and net lending was
D12.5 billion (28.8 percent of GDP) in
2016, compared to D10.8 billion (27.0
percent of GDP) in 2015. Recurrent
expenditure stood at D9.9 billion (22.8
percent of GDP), an increase, relative
to D8.4 billion (21.0 percent of GDP)
in 2015, mainly resulting from
increases in interest payments and
other charges. Capital expenditure also
increased to D2.6 billion in 2016 from
D2.4 billion in 2015, but remained the
same in terms of percentage of GDP at
5.9 percent.
The overall budget balance, on cash
basis (including grants and
discrepancy) was a deficit of D4.1
billion (9.5 percent of GDP) compared
to a deficit of D2.5 billion (6.3 percent
of GDP) in 2015. Excluding grants, the
deficit stood at 11.2 percent of GDP
compared with 8.1 percent in 2015.
The overall budget deficit was
financed predominantly by the banking
system (domestic source), and to a
lesser extent, from foreign sources.
The stock of public debt increased to
D49.9 billion (114.9 percent of GDP)
in 2016, from D40.5 billion (101.4
percent of GDP) in 2015, driven
mainly by the growth in domestic debt.
Domestic debt constituted 60.1 percent
of total debt in 2016, compared with
55.8 percent in 2015, and external debt
accounted for 39.9 percent as at end-
December 2016, compared to 44.2
percent as at end December 2015.
Monetary Sector Developments
Throughout 2016, the Central Bank of
The Gambia maintained its policy rate
at 23.0 percent, implying a neutral
monetary policy stance. Money supply
grew by 15.3 percent in 2016, relative
to a contraction of 0.9 percent a year
ago. The growth in money supply
during the period under review was
mainly attributable to the increase in
the banking system‟s net domestic
assets (NDA), which more than offset
the decline in net foreign assets (NFA)
of the banking system. NDA rose by
21.2 percent relative to 14.8 percent
growth in 2015 and net foreign assets
(NFA) in contrast, declined by 35.1
percent in the review period compared
to 56.2 percent in 2015.
Reserve money growth at end-2016
stood at 25.2 percent, largely reflecting
growth of 30.4 percent in the net
domestic assets of the Central Bank.
On the other hand, the net foreign
assets of the Central Bank contracted
significantly by 277.1 percent in 2016
compared to a contraction of 109.2
percent in 2015.
The yield on all short-dated
government securities declined during
the review period. The yield on the 91-
day, 182-day, and 364-day treasury
bills decreased from 17.65 percent,
18.08 percent, and 21.77 percent in
December 2015 to 13.32 percent,
15.21 percent, and 16.81 percent in
December 2016 respectively.
21
Similarly, the yield on the 91-day, 182-
day, and 364-day Sukuk-al-Salaam
(SAS) bills declined to 14.98 percent,
16.40 percent, and 18.14 percent in the
review period relative to 17.58 percent,
18.03 percent, and 21.83 percent
respectively in December 2015.
Additionally, the weighted average
inter-bank rate decreased from 17.58
percent in December 2015 to 13.57
percent in December 2016.
External Sector Developments
There was significant improvement in
the current account which recorded a
lower deficit of $80.3 million (8.1
percent of GDP), compared to $141.6
million (12.4 percent of GDP) in 2015,
owing mainly to a decline in the trade
deficit. The deficit balance on the
merchandise trade declined to
US$203.6 million (20.6 percent of
GDP) in 2016 from US$250.0 million
(24.8 percent of GDP) in 2015,
reflecting the decrease in imports by
18.3 percent, which more than
outweighed the 9.1 percent increase in
exports. The surplus in the services
account increased, the deficit in the
income account also increased, while
current transfers remained largely
unchanged during the period.
The capital and financial account
surplus declined significantly by 30.3
percent to US$73.0 million due to
developments in the financial account
particularly other investments and to a
lesser extent foreign direct investment.
The overall balance of payments
(BOP) indicated a deficit of $12.6
million (1.3 percent of GDP) during
the review period, compared to a
deficit of US$ 41.3 million (4.6
percent of GDP) in 2015, as the
external sector pressures experienced
in 2015 moderated.
Gross official reserves fell to a
precarious low level of US$59.8
million, equivalent to 2.4 months of
import cover, from US$76.0 million,
equivalent to 2.5 months of import
cover. The Dalasi depreciated by 9.7
percent against the US dollar and 9.2
percent against the Euro and
appreciated by 10.6 percent against the
British Pound.
3.3 Ghana
Real Sector
Provisional estimates indicated that
real GDP grew by 3.5 percent in 2016,
lower than the 3.8 in 2015, mainly on
account of poor performance in mining
and quarrying, especially oil and gas
production as well as water and
sewage. The services sector recorded
the highest growth rate in 2016 of 5.7
percent, followed by 3.0 percent
growth in the agriculture sector and
then 1.4 percent in the industrial
sector.
The Service sector remained the largest
contributor to growth in the review
period, and its share of GDP increasing
from 54.4 percent in 2015 to 56.9
percent in 2016. The Industrial sector
is the second largest contributor of
24.2 percent relative to 25.3 percent
attained in 2015.Agriculture remained
the least contributor to GDP with its
share declining to 18.9 percent in
2016, from 20.3 percent in 2015.
Figure 7: Ghana - Sectoral Growth
Rates
50.0
GROWTH RATE
(%)
0.0
2008 2010 2012 2014
-50.0 Agriculture Industry
Services
YEAR
Inflation (end-period) moderated to
15.4 percent in 2016, from 17.7
percent in 2015, mainly influenced by
non-food items in the first half and the
base drift-effects in the second half of
2016. Non-food inflation had remained
in double digits for over a decade
principally due to rising prices of
petroleum products, utility tariffs,
energy crisis and depreciation of the
cedi.
Fiscal Sector
Fiscal outturn in the review period
indicated that total revenue and grants
increased to GHȼ33.7 billion (20.1
percent of GDP), from GHȼ32.1
billion (22.9 percent of GDP), in the
preceding year, on account of the new
tax policy measures introduced during
the review period. Total domestic
revenue increased by 10.8 percent to
GHȼ32.5 billion, on account of tax
revenue increases. Tax revenue grew
to GHȼ27.7 billion (16.5 percent of
GDP) in 2016, compared to GHȼ24.4
billion (17.5 percent of GDP) in 2015.
Contrastingly, non-tax revenues
declined to GHȼ4.8 billion (2.9 percent
of GDP), relative to GHȼ4.9 billion
(3.5 percent of GDP) in 2015. Grants
also declined sharply by 57.6 percent
to GHȼ1.1 billion (0.7 percent of
GDP), from GHȼ2.7 billion (1.9
percent of GDP) in the previous year,
reflecting diminishing donor support
on account of Ghana attaining a
Middle Income Status.
Total expenditure rose to GHȼ51.1
billion (30.6 percent of GDP), relative
to GHȼ38.6 billion (27.6 percent of
GDP) in 2015, attributable mainly to
increase in transfers and interest
payments. Current expenditure stood at
2016
GHȼ43.4 billion (26.0 percent of
GDP), as against GHȼ31.5 billion
22
(22.5 percent of GDP), in the previous
year. Capital expenditure amounted to
GHȼ7.7 billion (4.6 percent of GDP),
compared to GHȼ7.1 billion (5.1
percent of GDP) in 2015.
The overall fiscal deficit on
commitment basis including grants,
increased to GHȼ17.4 billion,
representing 10.4 percent of GDP,
compared to the 4.7 percent of GDP in
2015. The fiscal deficit, on
commitment basis excluding grants,
deteriorated to GHȼ18.6 billion (11.1
percent of GDP), from GHȼ9.2 billion
(6.6 percent of GDP) in the previous
year. The deficit was 83.3 percent
domestically financed and the
remaining 16.7 percent, externally
financed.
The total stock of public debt stood at
GHȼ121.7 billion (72.8 percent of
GDP), compared to GHȼ99.1 billion
(70.8 percent of GDP), in 2015.
External debt stock accounted for 56.5
percent of the total public debt stock in
2016, relative to 60.4 percent in 2015,
while domestic debt accounted for 43.5
percent, relative to 39.6 percent in the
previous year.
Monetary Sector
Bank of Ghana eased monetary policy
during the review period, reducing its
policy rate by 50 basis points to 25.5
percent at end-year 2016. Broad
money (M2+) growth slowed to 22.0
percent in 2016, from 26.1 percent in
2015, mainly influenced by growth
decline in NDA of the banking system.
NFA grew by 34.6 percent to GHȼ15.0
billion in 2016, on account of inflows
of bonds issued and cocoa syndicated
loan. NDA grew by 18.1 percent to
GHȼ41.7 billion, mainly owing to
increase in domestic credit to the
23
private sector. Reserve Money grew by
29.6 percent in 2016 relative to 24.2
percent in 2015, due to increases in
banks‟ reserves and currency outside
banks.
As at end-2016, the 91-day
(benchmark) treasury bills rate and the
base rate declined to 16.1 percent and
26.7 percent, from 21.9 percent and
26.9 percent respectively in the
preceding year, informed by the
disinflationary trend. The average
savings rate fell to 6.05 percent from
6.08 percent in 2015. However,
commercial banks‟ average lending
rates increased to 31.2 percent, from
27.5 percent in 2015. These
developments widened interest rate
spread in the review period.
External Sector
The current account deficit improved
from a deficit of 8.3 percent of GDP in
2015 to 7.0 percent in 2016, owing to
improvement in the trade account. The
trade deficit narrowed to US$1.8
billion (4.3 percent of GDP), from
US$3.1 billion (8.5 percent of GDP) in
2015, as exports increased by 7.9
percent, to US$11.1 billion, while
imports declined by 4.1 percent to
US$12.9 billion. The deficits in the
services and income components of the
current account widened to US$1.3
billion (3.2 percent of GDP) and
US$1.2 billion (2.9 percent of GDP)
respectively in 2016. The surplus in
current transfers net, narrowed to
US$1.5 billion (3.6 percent of GDP) in
2016, reflecting reduction in private
transfers (remittances) by 39.8 percent.
The capital and financial account
recorded a lower surplus of US$2.8
billion (6.4 percent of GDP) in 2016,
compared to US$3.1 billion (8.4
percent of GDP) in 2015. The lower
surplus is explained by a decline in
capital transfers and increased outflow
in other investments during the period.
The above developments resulted in
the overall balance of payments
recording a surplus of US$0.25 billion
(0.6 percent of GDP) in 2016,
compared to a deficit of US$0.02
billion (0.04 percent of GDP) in 2015.
Gross external reserves increased to
US$4.9 billion (4.2 months of import),
from US$4.4 billion (3.6 months of
import) in 2015, on account of inflows
from cocoa syndicated loans, export
receipts and bonds issued. The cedi-
dollar exchange rate depreciated by 9.2
percent in 2016, compared to a
depreciation of 15.7 percent in 2015,
mirroring the improvement in the
external sector.
3.4 Guinea
Real Sector
In 2016, real GDP growth stood at 5.2
percent compared to 4.5 percent in
2015, largely on account of sharp
recovery in the secondary sector,
which recorded a growth of 8.5 percent
in 2016 compared to a contraction of
5.2 percent in 2015. Growth in the
secondary sector was driven by
increased performance in mining and
energy activities. Growth in the
primary sector however, declined to
3.7 percent from 7.1 percent in 2015,
as a result of low performance in the
animal husbandry and forestry sub-
sectors. Growth in the tertiary sector
also trended downwards to 3.6 percent
in 2016 from 9.6 percent in 2015,
mainly owing to significant decrease in
transportation reflecting deterioration
in the road network.
24
In terms of sectorial contribution to the
2016 growth, the secondary sector was
the largest contributor (2.2 percent),
followed by the tertiary sector (1.8
percent), the primary sector (0.7
percent), and import duties and taxes
(0.6 percent).
Figure 8: Guinea –Trends of sector
growth rate
12.0
10.0 9.6
8.5
8.0
7.1
Growth rate in %
6.0
4.0 3.7 3.6
2.0
0.0
2011 2012 2013 2014 2015 2016
-2.0
-4.0
-6.0 -5.2
Primary sector Secondary sector Tertiary sector
With regards to price developments,
year-on-year inflation increased to 8.7
percent as at end-December 2016,
from 7.3 percent as at end-December
2015, mainly due to high food prices,
depreciation of the Guinean franc and
increase in VAT from 18 percent to 20
percent.
Fiscal Sector
Government fiscal operations in 2016
were characterized by significant
improvement in revenue mobilisation
and better expenditure control.
Total revenue and grants in 2016
amounted to GNF 12,325.5 billion,
representing an increase of 26.4
percent, relative to 2015. As a
percentage of GDP, total revenue and
grants rose to 16.4 percent, from 14.9
percent in 2015. Domestic revenue
mobilised in 2016 increased by 26.7
percent to GNF 11,391.20 billion,
mainly on account of increase in tax
revenue. Tax revenue rose to GNF
10,929.6 billion (14.6 percent of GDP)
from GNF 8,579.0 billion (13.1
percent of GDP) in 2015, partly as a
result of measures adopted in the 2016
budget bill, including tax raise on
excise duties and VAT. Similarly, non-
tax revenue increased to GNF 461.6
billion from GNF 409.4 billion, but as
a percentage of GDP it was maintained
at 0.6 percent, same as in 2015. Grants
increased to GNF 833.6 billion (1.1
percent of GDP) in 2016 from GNF
337.8 billion (0.5 percent of GDP) in
2015.
Total expenditure and net lending
declined by 12.9 percent to GNF
12,439.1 billion in 2016, representing
16.6 percent of GDP compared to 21.8
percent in the previous year. Current
expenditure decreased to GNF 8,582.1
billion (11.4 percent of GDP) from
GNF 8,819.0 billion (13.4 percent) in
2015. Capital expenditure also
declined to GNF 3.682,1 billion (4.9
percent of GDP) from GNF4, 990.2
billion (7.6 percent of GDP) at the end
of 2015.
These developments culminated in an
improvement in the overall fiscal
balance. The fiscal deficit, on
commitment basis, including grants,
was 0.2 percent of GDP, lower than the
6.9 percent recorded in 2015. In the
same vein, fiscal deficit on
commitment basis excluding grants,
decreased to 1.3 percent of GDP, from
7.4 percent of GDP in the previous
year.
Total public debt which accounted for
46.6 percent of GDP as at end
December 2016 stood at GNF 34,954
billion, representing an increase of
23.1 percent relative to December
2015. External debt rose by 20.8
percent to GNF 16,813.2 billion and
25
domestic debt, by 22.1 percent to GNF
18,140.8 billion as at end- December
2016.
Monetary Sector
The BCRG pursued tight monetary
policy stance during the review period,
raising the Monetary Policy Rate
(MPR) by 150 basis points to 12.5
percent, while the reserve requirement
ratio was maintained at 18 percent.
Broad money supply (M2) grew by 9.9
percent to GNF 19,394.61 billion in
2016, lower than the 20.3 percent
growth in the previous period. Net
Foreign Assets significantly increased
by 69.0 percent, on account of
measures adopted by the Authorities to
facilitate the repatriation of revenue
from commodity exports. Net
Domestic Assets (NDA) increased by
3.2 percent and credit to the private
sector grew by 7.2 percent in 2016.
As at end 2016, the 91 days treasury
bills yield rose to 14.94 percent from
12.03 percent, while both the savings
and lending rates decreased to 2.86
percent and 22.16 percent from 3.0
percent and 22.46 percent respectively
as at end 2015.
External Sector
In 2016, Guinea‟s current account
deficit worsened to 32.4 percent of
GDP, from 11.6 percent in 2015,
reflecting the deterioration in the trade
balance and services accounts. The
trade deficit significantly widened to
USD 2,015.1 million (23.8 percent of
GDP) during the review period from
USD 410.6 million (4.7 percent of
GDP) in 2015, owing to the 102.1
percent increase in imports, which
outweighed the 35.6 percent increase
in exports. The deficit posted in the
services account also increased further
to USD 655.9 million (1.0 percent of
GDP) in 2016 from USD 425.0 million
(0.8 percent of GDP) a year ago. On
the other hand, net transfers improved
from a deficit of USD 41.30 (0.46
percent of GDP) in 2015, to a surplus
of USD 80.8 million (0.95 percent of
GDP) in 2016.
The capital account surplus declined
from USD 230.9 million (2.6 percent
of GDP) in 2015 to USD 164.2 million
(1.9 percent of GDP) in 2016,
explained by the fall in project grants.
The financial account, however, posted
a significant increase in surplus of
USD 2,579.7 million (30.4 percent of
GDP) compared to USD 289.8 million
(3.3 percent of GDP) in 2015, mostly
due to an increase in foreign direct
investments. Against the developments
in the financial account, the overall
deficit improved considerably to USD
0.8 million (0.01 percent of GDP) in
2016, from USD 499.9 million (5.7
percent of GDP) in 2015.
Gross external reserves increased to
USD 614.65 million in 2016, from
USD 456.41 million in 2015, but
declined in months of import cover to
1.4 percent from 2.3 percent in 2015,
owing to the substantial increase in
imports. As at end December 2016, the
Guinean franc depreciated by 13.2
percent against the US dollar in the
official market and by 9.7 percent in
the parallel market.
3.5 Liberia
Real Sector
In 2016, real GDP contracted by 0.5
percent from zero growth in 2015, due
to low performance of the secondary
sector. The secondary sector
contracted by 16.6 percent, compared
26
to a contraction of 11.0 percent in the
preceding year, on account of the
lingering adverse commodity price
shocks which created disincentive to
invest in that sector. Expansion in the
tertiary sector slowed to 3.9 percent in
the year under review, compared to 4.3
percent recorded in 2015. The primary
sector, however, recorded a remarkable
improvement during the review period,
growing by 2.2 percent against 1.1
percent in the corresponding period of
2015.
Figure 9: Liberia – Trends in Sectorial Growth Rates
50.0
40.0
Sectoral Growth Rates (%) 30.0
20.0
10.0
0.0
-10.0
-20.0
2011 2012 2013 2014 2015 2016
Primary Secondary Tertiary
In terms of price developments, year-
on-year inflation (end-period)
increased to 12.5 percent, from 8.0
percent in the corresponding period of
2015, due mainly to the pass-through
effects of exchange rate depreciation,
liquidity injection (Liberian dollar) and
an increase in bulk fuel storage cost of
petroleum products to US$0.50 per
gallon, from US$0.20 in the previous
period.
Fiscal Sector
Total revenue and grants in 2016,
decreased to US$563.6 million (26.7
percent of GDP) from US$611.0
million (29.8 percent of GDP) in 2015.
Tax revenue contracted by 2.0 percent
to US$382.0 million (18.1 percent of
GDP) as at end-December 2016, from
US$389.9 million (19.0 percent of
GDP) in the corresponding period of
2015, driven mainly by a decrease in
export tax, import tax and other tax
revenues. Non-tax revenue also fell to
US$146.9 million (7.0 percent of
GDP) in December 2016, from
US$173.0 million (8.4 percent of
GDP) in December 2015, largely
driven by decline in administrative
charges and duties as well as other
receipts, contingency and borrowing.
Grants decreased to US$34.7 million
in December 2016, from US$48.1
million in the corresponding period of
2015, partly due to unwinding of
Ebola-related support.
Total expenditure and net lending
decreased to US$516.8 million (24.5
percent of GDP), compared to
US$578.4 million (28.2 percent of
GDP) in the previous year, mainly
owing to reforms instituted by the
Government of Liberia, such as travel
ordinance and fiscal rules which
engendered substantial savings.
Recurrent expenditure decreased by
20.5 percent to US$481.9 million (22.8
percent of GDP) in 2016, from
US$527.1 million (25.7 percent of
GDP) in 2015, on account of a 4.4
percent decrease in wages and salaries,
goods, services and transfers as well as
the Government‟s expenditure
rationalisation measures.
Reflecting the reduction in
expenditure, the overall fiscal balance
(including grants) remained in surplus,
increasing to US$46.9 million (2.2
percent of GDP) in 2016, from
US$32.6 million (1.6 percent of GDP)
in 2015. Fiscal balance (excluding
grants) also improved to a surplus of
US$12.1 million (0.6 percent of GDP)
from a deficit of US$15.5 million (0.8
percent of GDP) in 2015.
27
The stock of public debt rose by 17.9
percent to US$785.6 million (37.2
percent of GDP) in 2016, from
US$657.7 million (32.0 percent of
GDP) in 2015, attributable to
ratification of previously signed loan
agreements by the Liberian National
Legislature. The proportion of external
debt to public debt increased to 64.6
percent in 2016, from 58.7 percent in
2015, while the proportion of domestic
debt fell to 35.4 percent from 41.3
percent.
Monetary Sector
During the review period, the
Monetary Policy thrust of the Central
Bank of Liberia (CBL) focused on the
maintenance of price stability through
exchange rate stability. Broad money
growth slowed to 10.0 percent in 2016,
from 12.9 percent in 2015. The
slowdown resulted mainly from Net
Domestic Assets (NDA) which grew
by 5.6 percent as against 42.0 percent
in 2015. On the other hand, Net
Foreign Assets (NFA) recorded a
growth of 13.5 percent during the
review period, compared to a
contraction of 2.8 percent in 2015.
Credit to the private sector increased
by 18.5 percent to L$42,885 million
(20.6 percent of GDP) in 2016, from
L$36,183 million (19.9 percent of
GDP) in 2015, due mainly to limited
borrowing by government and reduced
interest rate by 0.1 percentage point to
13.5 percent in December 2016, from
13.6 percent in December 2015.
Reserve money grew by 14.7 percent,
compared to a contraction of 1.4
percent in 2015, reflecting growth in
both currency outside banks and bank
reserves.
Movements in interest rates showed a
modest downward trend during the
review period. The average benchmark
T-bill rate declined to 3.2 percent,
from 3.8 percent in 2015, while
commercial banks‟ average lending
rate declined to 13.6 percent, from 13.7
percent in 2015. The average interest
rate on time deposits (12 month) fell to
3.9 percent in 2016, from 4.1 percent
in 2015, whilst the rate on savings
deposit remained unchanged at 2.0
percent.
External Sector
External sector performance was
mixed during the review period. The
current account deficit narrowed to
US$325.4 million (15.4 percent of
GDP) in 2016, from US$852.3 million
(41.5 percent of GDP) in 2015, largely
on account of improvement in the trade
balance. The trade deficit declined to
US$1040.7 million (49.3 percent of
GDP) in 2016, from US$ 1286.1
million (62.7 percent of GDP) in 2015,
as a result of the decline in imports,
which more than outweighed the drop
in exports. Exports declined by 36.0
percent to US$ 169.6 million due to
weak international prices and lower
production of the country‟s major
export commodities. Similarly, imports
fell by 22.0 percent to US$1210.3
million, attributable to the withdrawal
of United Nations Mission in Liberia
(UNMIL) as well as lower world
market prices of petroleum products.
The services account net fell by 37.3
percent to US$473.4 million in 2016.
Similarly, income fell by 35.9 percent
to US$252.7 million, due to debt
service and current transfers net fell by
8.9 percent to US$1,441.5 million
reflecting lower remittance flows. The
capital and financial account recorded
a deficit of US$951.8 million (45.1
percent of GDP) in 2016, compared to
28
US$967.4 million (47.1 percent of
GDP) in 2015.
The overall balance of payments
recorded a surplus of US$182.8
million (8.7 percent of GDP) in 2016,
compared to US$182.2 million (8.9
percent of GDP) in 2015.
Gross external reserves increased by
5.3 percent to US$536.3 million in
2016 (3.3 months of imports-cover),
from US$509.3 million (2.3 months of
imports-cover) in 2015. The
improvement was due to the
Government of Liberia‟s policy on
reserves accretion under the Extended
Credit Facility (ECF) program, where
there was no sale of foreign exchange
for the second quarter in 2016. The
Liberian dollar depreciated by 13.7
percent against the US dollar, and
stood at L$102.5 in 2016, partly on
account of the injection of Liberian
dollars by Government.
3.6 Nigeria
Real Sector
Real output growth contracted by 1.5
per cent in 2016, compared to the 2.8
percent growth recorded in 2015. The
contraction in growth, which was the
first in many years, can be attributed to
the low price of crude oil, production
cuts in oil output due to insecurity and
vandalism of oil and gas infrastructure,
structural constraints, and the late
passage and implementation of the
2016 budget. The non-oil sector
contributed 0.22 per cent to the
contraction in output growth in the
review period, and the rest was
contributed by the oil sector.
Agriculture was the only sector that
contributed positively by 0.95 per cent
to real GDP in 2016. This can be
attributed to growth in crop
production, boosted by improved
security in the north eastern part of the
country, favourable weather conditions
and effective implementation of the
N20 billion CBN Anchor Borrower‟s
Programme.
Figure 10. Nigeria – Real GDP
growth and inflation rates
Headline inflation doubled to 18.6
percent at end-December 2016, from
the 9.6 percent recorded in the
corresponding period of 2015, being
the highest level since 1994. Further
examination of the inflation data show
that the pressures stemmed from both
core and food components, as they
increased to 18.1 percent and 17.4 per
cent from 8.7 percent and 10.6 percent
respectively in the corresponding
period of 2015. The rising inflationary
pressure was largely a reflection of
structural factors, including high cost
of electricity, transport, and inputs, as
well as higher prices of both domestic
and imported food products. The other
contributory factor is the insurgency in
the North-eastern part of the country,
which stifled economic activity in the
affected areas.
Fiscal Sector
In 2016, total revenue garnered was
₦4,232.4 billion (4.2 per cent of GDP),
higher by 5.9 per cent from the
₦3,994.5 billion (4.2 percent of GDP)
29
mobilized in 2015. Tax revenue (net),
accounting for 36.3 percent of total
revenue in 2016, was ₦1,537.0 billion
(1.5 percent of GDP), higher than the
₦1,482.7 billion (1.6 per cent of GDP)
in 2015. Non-tax revenue (i.e. net oil
revenue to Federation account) which
accounted for 63.7 percent of total
revenue, amounted to ₦2,695.4 billion
(2.7 percent of GDP), representing an
increase of 7.3 percent from its
earnings of ₦2,511.8 billion in 2015.
The increase in revenue was
attributable mainly to pick-up in crude
oil prices and other government fiscal
measures that helped shore up revenue,
especially non-oil taxes.
Total expenditure and lending
amounted to ₦5,140.8 billion (5.1 per
cent of GDP), higher by 7.8 per cent
when compared to ₦4,767.4 billion
(5.1 per cent of GDP) in 2015. The
recurrent expenditure of the Federal
Government amounted to ₦3,878.0
billion, representing 75.4 percent of
total expenditure, and higher by 7.4
percent compared to 2015. Interest
payments accounted for 26.9 per cent
of total expenditure and grew by 30.6
per cent to ₦1,384.9 billion in 2016,
attributable to both increase in
domestic interest rates and government
borrowing to finance the
implementation of the budget due to
contraction in revenues.
Capital/Investment expenditure which
accounted for 17.9 per cent of total
expenditure grew by 12.4 per cent to
₦918.8 billion.
Overall, fiscal operations led to a
deficit of ₦2,193.3 billion (2.2 percent
of the GDP) in 2016, compared to the
deficit of ₦1,557.8 billion (1.7 percent
of GDP) in 2015. The deficit was
financed entirely from domestic
sources, largely by borrowings from
the non-bank public (FGN domestic
bonds) and drawdown on government
deposits with the central bank. Others
were privatization proceeds,
securitization and borrowings from
special accounts.
Nigeria‟s total outstanding public debt
as at end-December 2016 stood at
₦16,251.0 billion (16.0 percent of
GDP), which increased by 48.4 per
cent over the ₦10,948.4 billion (11.6
percent of GDP) debt stock in 2015.
Domestic debt accounted for 68.0
percent of the total outstanding public
debt, while external debt was 32.0
percent. External debt stock more than
doubled by 145.9 percent to ₦5,192.8
billion (3.4 percent of GDP), largely
on account of borrowing from bilateral
and multilateral institutions, as well as
the international capital market.
Domestic debt stock grew by 25.1
percent to ₦11,058.2 billion (10.9
percent of GDP) in 2016, compared to
₦8,837.0 billion (9.4 percent of GDP)
in 2015.
Monetary Sector
The Central Bank of Nigeria adopted a
tight monetary policy stance during the
review period. The Monetary Policy
Rate (MPR) was increased to 14.0 per
cent in 2016 from 11.0 percent in
2015, aimed at ensuring price stability.
The asymmetric corridor was narrowed
from +2.0/-7.0 percent to +2.0/-5.0
percent around the MPR, intended to
encourage lending amongst DMBs.
Cash reserve requirement (CRR) was
increased from 20.0 percent to 22.5
percent for both public and private
sector funds, while the minimum
liquidity ratio (LR) remained at 30.0
percent. The above measures were
30
geared towards building confidence in
the economy.
Broad money (M2) grew by 18.4
percent in 2016, which was slightly
lower than the growth of 19.1 percent
in 2015. Net foreign assets and net
domestic assets grew by 57.3 percent
and 3.2 percent compared to -12.6
percent and 49.7 percent, respectively,
in 2015. The growth of NFA was due
to the 53.9 percent increase in foreign
assets of the central bank and the
growth of NDA was mainly due to
growth in credit to the private sector by
the deposit money banks, which
contributed 15.1 percent to the growth
of broad money. Reserve money
contracted by 5.5 percent in 2016,
higher than the 2.0 contraction in 2015.
Interest rates generally trended
upwards in all segments of the money
market in the period under review, as
there was significant increase in money
market rates following the increase in
the monetary policy rate in March
from 11.0 percent to 12.0 per cent by
the monetary authority and then to 14.0
per cent in July. The interbank rate
(IBR) experienced the highest increase
as it rose from 2.75 per cent in January
and peaked at 29.81 per cent in
October before trending down to 11.62
per cent in December 2016. The
increase was attributed in part, to the
introduction of the flexible foreign
exchange framework, and the mop up
of naira liquidity due to increased sale
of foreign exchange by the CBN in the
month of June 2016. As a result, there
was a decline in the volume of activity
in the inter-bank market, owing to
injections by Federation Account
Allocation Committee (FAAC) and
maturity of some CBN securities.
External Sector
The current account balance improved
in the review period to a surplus of
US$2.72 billion (0.8 percent of GDP)
from a deficit of US$15.44 billion (3.2
percent of GDP) in 2015, due to
improvement in all of its four
components. Export receipts dropped
by 24.4 percent to US$34.70 billion,
due to the sustained low price of oil at
the international market, production
shortfalls caused by vandalism of oil
and gas installations, as well as the
drastic drop in non-oil exports. In the
same vein, import bill fell by 32.7
percent to US$35.24 billion from
US$52.33 billion in 2015, attributable
to the fall in non-oil imports by 40.0
percent, leading to improvements in
trade balance. Similarly, services (net)
fell by half to US$8.01 billion, and
income (net) fell by 32.2 per cent to
US$8.62 billion. However, the current
transfers (net) was in surplus in both
2015 and 2016, occasioned by the
sustained inflow of workers‟
remittances. The surplus recorded in
the current transfers (net) fell slightly
by 1.4 per cent to US$19.89 billion
from the 2015 level of US$20.17
billion.
The financial account recorded a net
incurrence of liabilities of US$ 1.65
billion (0.4 per cent of GDP) in 2016
from a net acquisition of financial
assets of US$ 1.03 billion (0.2 per cent
of GDP) in 2015. This was mainly on
account of increased surpluses in direct
and portfolio investments (net). There
was tremendous increase in investment
flows, as surpluses in direct and
portfolio investments almost doubled
by 93.0 percent and 99.2 per cent to
US$3.14 billion and 1.71 billion in the
review period. However, other
investments (net) significantly dropped
31
by 55.3 per cent to a deficit of US$4.7
billion in 2016, from a deficit of
US$9.34 billion in the corresponding
period of 2015, mainly on account of
financing of trade credits.
External sector performance improved
in 2016 as the deficit in the overall
balance declined to US$ 0.98 billion
(0.2 percent of GDP) from US$ 5.85
billion (1.2 percent of GDP) recorded
in 2015, reflecting the improvement in
the current account and financial
account balances.
Gross external reserves declined by 4.6
percent to US$26.99 billion at end-
December 2016, from US$28.28
billion in the corresponding period of
2015, due to low prices of oil and the
utilization of available reserves to
intervene in the foreign exchange
market in order to stabilize the value of
the naira. However, in months of
imports-cover, gross external reserves
increased to 8.2 months from 5.8
months recorded in 2015, largely on
account of the significant decline in
imports. As at end December 2016, the
naira weakened across the two
segments of the market, with the
exchange rate at the interbank market
segment depreciating by 35.5 per cent
to ₦305.0/US$, against ₦197.0/US$ in
the corresponding period of 2015.
3.7 Sierra Leone
Real Sector
Real output growth recovered
gradually from the two exogenous
shocks, recording an estimated 6.1
percent growth in 2016, compared to
the contraction of 20.6 percent in 2015.
The growth was induced by the
resumption of iron ore mining, coupled
with upward movement in global
commodity prices. The non-iron ore Inflationary pressures persisted during
economy also continued its recovery the review period, driven by the
with its growth estimated at 4.3 percent continued depreciation of the Leone
compared to 3.3 percent in 2015, against major international currencies,
spurred by increased investment in upward adjustment in domestic fuel
agriculture, construction, pump prices and electricity tariff.
manufacturing and services, including Thus, the year-on-year inflation
tourism and communication as well as increased to 17.4 percent at end-
increased electricity supply. December 2016 from 8.9 percent at
end-December 2015.
Agriculture was estimated to have
grown higher at 3.8 percent in 2016
relative to 3.5 percent in 2015, mainly Fiscal Sector
on account of support to farmers Fiscal operations remained under
through the provision of basic pressure in 2016 due to expenditure
agricultural inputs, including improved overruns. Total domestic revenue
seedlings, fertilizers and improved increased to Le2.89 trillion (12.1
access to finance and farming skills. percent of GDP) in the review period
The government also reinforced from Le2.33 trillion (10.8 percent of
farmers in the form of vaccination and GDP) in 2015, owing mainly to
drugs for livestock and the provision of improvement in both tax and non-tax
extension services. The industrial revenue. Tax revenue rose by 22.8
sector recorded a growth rate of 26.2 percent to Le2.51 trillion in 2016,
percent from a contraction of 77.4 largely due to improved collection of
percent in 2015, largely due to taxes on income, goods and services
recovery of the Mining and Quarrying and imports, reflecting the impact of
sub-sector. The services sector also revenue enhancing measures by the
improved to an estimated 4.7 percent National Revenue Authority (NRA).
in 2016 from 3.7 percent in 2015, Similarly, non-tax revenue increased
against the backdrop of the revival of by 32.4 percent to Le383.38 billion in
trade and tourism, transport & 2016, reflecting the improved
communication and education sub- collection of revenue from enterprises
sectors. and sales of assets as well as royalties
and license fees from the mining
Figure 11. Sierra Leone – Sectoral sector, following the resumption of the
Growth Rates operations of the iron ore mining
companies. Total grants declined
150
significantly to Le726.71 billion (3.0
100 percent of GDP) compared to Le1.16
trillion (5.4 percent of GDP) in 2015,
Percentage (%)

50
largely due to a scale down of donor
0
inflows and delays in disbursement for
2010 2011 2012 2013 2014 2015 2016
budget support.
-50

-100
Total expenditure and net lending
Real GDP Agriculture Industry Services
increased to Le5.44 trillion (22.8
percent of GDP) in 2016 from Le4.42

32
trillion (20.5 percent of GDP) in 2015,
due mainly to increased recurrent
outlays. Recurrent expenditure rose by
26.7 percent to Le3.55 trillion, driven
largely by increased spending on goods
and services and the high wage bill.
Similarly, total interest payments on
government debt increased by 15.6
percent to Le201.81 billion, on account
of higher interest rates on both
domestic and foreign debt instruments.
Capital expenditure also scaled up by
26.2 percent to Le2.04 trillion from
Le1.62 trillion in the preceding year.
The overall budget deficit excluding
grants increased to Le2.55 trillion
(10.7 percent of GDP) in 2016 from
Le2.09 trillion (9.7 percent of GDP) in
2015. Fiscal deficit including grants
rose to Le1.82 trillion (7.7 percent of
GDP) from Le0.92 trillion (4.3 percent
of GDP) in 2015. The deficit was
financed mainly from the banking
system.
Total public debt stood at Le13.14
trillion (55.1 percent of GDP) as at
end-December 2016 compared to
Le9.7 trillion (45.4 percent of GDP) as
at end-December 2015. External debt
increased by 9.6 percent to US$1,356.5
million as at end-December 2016 while
domestic debt rose by 22.7 percent to
Le3.37 trillion.
Monetary Sector
The BSL increased its monetary policy
rate (MPR) twice in the review period,
from 9.5 percent to 10.5 percent in
September 2016 and 11.0 percent in
December 2016, signaling a tight
monetary policy stance. Also, the BSL
introduced a corridor around the MPR
in a bid to boost liquidity management
and enhance the effectiveness of
monetary policy. The required reserve
33
ratio (RRR), however, remained
unchanged at 12.0 percent. Broad
money (M2) grew by 16.5 percent in
2016 compared to 11.3 percent in
2015, largely due to an expansion in
the growth of NFA of the banking
system. The NFA expanded by 5.8
percent in 2016 compared to
contraction of 1.1 percent in 2015, due
mainly to the accumulation of foreign
assets which more than outweighed the
drop in foreign outflows. NDA
however decelerated to 31.7 percent
compared to 35.4 percent in 2015.
Reserve Money (RM) growth
increased to 24.5 percent from 10.4
percent a year ago.
Domestic money market rates
generally increased while commercial
banks rate (deposits and lending)
declined. The 91-day treasury bills rate
increased to 9.38 percent as at end-
December 2016 from 1.08 percent at
end-December 2015, while the rate for
the 182-day bills rose to 16.17 percent
from 3.12 percent at end-December
2015. Interest rate on the 364-day bills
also scaled up to 30.22 percent from
9.91 percent at end-December 2015.
The rise in the rates was mainly due to
increased government borrowing from
the domestic money markets. The
average savings rate droped to 2.38
percent at end December 2016 from
2.54 as at end-December 2015, while
the average lending rate on overdraft
fell slightly to 21.35 percent from
21.46 percent as at end-December
2015
External Sector
External sector performance improved
in the review period. The current
account deficit declined to US$428.6
million (11.3 percent of GDP) from
US$741.8 million (17.5 percent of
GDP) in 2015, mainly on account of
improvement in the services account,
reduction in import payments as well
as increased export receipts. The trade
deficit narrowed significantly to
US$341.80 million (9.0 percent of
GDP) from US$765.20 million (18.0
percent of GDP) in 2015, largely due
to increased export receipts, especially
mineral exports and the huge reduction
in the import bill. Exports increased by
15.2 percent to US$669.9 million in
the review period, while imports
declined by 24.9 percent to
US$1,011.7 million, as Ebola-related
goods and services imports decreased
along with import of fuel products.
The deficit registered in the services
account, declined to US$422.6 million
in 2016 from US$452.7 million in
2015, indicating an improvement.
Current transfers (net), however,
deteriorated, as the surplus declined to
US$335.8 million in 2016 from
US$476.1 million in 2015.
The capital account recorded a surplus
of US$68.6 million (1.8 percent of
GDP) in 2016, which was lower
compared to the surplus of US$134.5
million (3.2 percent of GDP) in 2015,
reflecting a significant drop in capital
transfers. The financial account also
remained in surplus, increasing further
to US$378.2 million (10.0 percent of
GDP) in 2016 from US$364.1 million
(8.6 percent of GDP) in 2015,
principally due to increased net direct
investment flows. On the whole, the
overall balance of payments (BOP)
deficit improved to US$68.8 million
(1.8 percent of GDP) in the review
period compared to US$104.9 million
(2.5 percent of GDP) in 2015.
Gross external reserves declined to
US$503.8 million (5.3 months of
34
import) as at end December 2016 from
US$580.26 million (4.6 months of
imports) as at end-December 2015,
largely attributable to a reduction in
donor inflows as well as the drawdown
on reserves by BSL to smoothen the
volatility of the exchange rate. The
months of import cover increased due
to the decline in the import bill. The
pressure on the domestic currency
continued with the leone depreciating
by 21.6 percent against the US dollar
in 2016 from 12.2 percent in 2015.
3.8 Status of Macroeconomic
Convergence Based on the Revised
ECOWAS Criteria
Member states were assessed based on
the fulfillment of four primary criteria
and two secondary criteria as pre-
requisites for monetary union. The
primary criteria comprised single digit
inflation rate, fiscal deficit (including
grants) of not more than 3.0 percent of
GDP, central bank financing of fiscal
deficit of not more than 10 percent of
previous year‟s tax revenue; and gross
external reserves of not less than 3.0
months of import cover. The secondary
criteria consist of; Exchange Rate
Variation within the range of ±10%
and Public Debt to GDP ratio of not
more than 70 percent.
Performance on the convergence scale
revealed that none of the six member
states of the WAMZ met all four
primary convergence criteria. Guinea,
Liberia and Nigeria satisfied three
each, while The Gambia, Ghana and
Sierra Leone satisfied one of the
primary criteria, each. The Gambia
met the criterion on single digit
inflation (end period) (6.7%) but
missed out on the fiscal deficit as a
percentage of GDP, central bank
financing of fiscal deficit as a
percentage of the previous year‟s tax
revenue and gross external reserves in
months of import cover. Ghana
satisfied the criterion on external
reserves in months of import cover
(4.2), while defaulting on the single
digit inflation, fiscal deficit, including
grants as a percentage of GDP and
central bank financing of fiscal deficit.
Guinea attained three of the criteria
namely; single digit inflation (8.7%),
fiscal deficit as a percentage of GDP
(0.2%) and the criterion on central
bank financing of fiscal deficit (1.9%)
but failed to achieve the threshold on
months of import cover. Liberia
fulfilled three primary convergence
criteria namely; fiscal deficit including
grants as a percentage of GDP (-2.2%)
central bank financing of fiscal deficit
(0.0%) and gross reserves in months of
import cover (3.3 months), while
missing out on single digit inflation
(12.5%). Nigeria met three primary
criteria: fiscal deficit including grants
as a percentage of GDP (-2.2%),
central bank financing of fiscal deficit
(0.0%) and gross external reserves in
months of imports cover (8.2), but fell
short of meeting the single digit
35
inflation. Sierra Leone achieved only
one of the primary criteria: gross
external reserves in months of import
cover (5.3 months) but defaulted on the
single digit inflation, central bank
financing of fiscal deficit and fiscal
deficit including grants as a percentage
of GDP.
Member states performance based on
the Secondary convergence criteria
indicated that each member state met
one of the two criteria (Exchange Rate
Variation and Public Debt as a
percentage of GDP). The Gambia and
Ghana fulfilled the criterion on
exchange rate variation (9.7 percent)
and (9.2 percent) respectively, but
missed out on the public debt as a
percentage of GDP. On the other hand,
Guinea, Liberia, Nigeria and Sierra
Leone satisfied the criterion on public
debt as a percentage of GDP; (46.6%),
(37.2%), (16.0%) and (55.1%),
respectively, but defaulted on the
exchange rate variation criterion.
 CHAPTER FOUR

ECONOMIC AND FINANCIAL INTEGRATION IN THE WEST

AFRICAN MONETARY ZONE

4.1 Introduction was due to rise in both exports and

imports, underpinned by recovery in

T rade integration generally economic activities in many Member

improved in the Zone in 2016 States, in the aftermath of the
characterised by increased intra- downturn in 2015. The Gambia,
WAMZ trade flows and better Guinea, Nigeria and Sierra Leone
compliance with ECOWAS trade- recorded improvements in trade within
related commitments. The West the Zone, while Ghana and Liberia
African Monetary Institute in reported declines.
collaboration with ECOWAS
Commission, development partners Notwithstanding the improvement in
and other stakeholders continued to intra-WAMZ trade flows, the overall
advocate deeper trade integration, WAMZ trade integration index,
through promotion of trade facilitation. composed of intra-regional trade flows,
financial environment, connectivity
4.2 Trade Developments across transport modes and physical
infrastructure, fell by 3.23 points to
4.2.1 Overview
44.11 points in 2016, from 47.34
World output growth slowed to 3.1
points in 2015, due to relatively weak
percent in 2016, from 3.4 percent in
performance in financial environment
2015. Similarly, growth in global trade
and physical infrastructure
remained sluggish and further slowed
components. In spite of the drag in
to about 1.9 percent in the review
these two components, the remaining
period, from 2.8 percent in the
components i.e. intra-regional trade
preceding year, attributable to weak
flows and connectivity across transport
output growth, troughs in commodity
modes registered improvements.
prices, macroeconomic rebalancing in
China as well as global economic
The WAMZ Member States continued
uncertainty. However, projections
to implement ECOWAS trade-related
suggest that growth in global trade
protocols, conventions as well as other
may reach 2.4 percent in 2017,
regional commitments during the
reflecting anticipated recovery in
period under review. Of the fifty-four
world output.
ECOWAS protocols and conventions,
The Gambia and Ghana have so far
In spite of the subdued world output
ratified forty-four each, representing
growth and tepid trade growth in 2016,
81.5 percent for each country, Guinea
provisional estimates suggest that
ratified thirty-seven, representing 68.5
intra-WAMZ trade has gained
percent, Liberia fifty-two, representing
momentum and improved to US$2.8
96.2 percent, Nigeria forty-one,
billion (0.72 percent of GDP) in 2016,
representing 75.9 percent and Sierra
compared to US$1.6 billion (0.29
Leone, forty-two, representing 77.8
percent of GDP) in 2015. This increase
percent.

36
In 2016, the WAMZ Member States,
either improved upon or maintained
their status of compliance with the
ECOWAS trade-related protocols,
relative to the previous year. The
Zone‟s compliance rose by 3.4
percentage points to 68.9 percent, from
65.5 percent in 2015, due to progress
made by Ghana, Nigeria and Sierra
Lone, on various aspects of the trade
integration protocols, while The
Gambia, Guinea and Liberia sustained
their status of compliance.
4.2.2 ECOWAS Trade Liberalisation
Scheme (ETLS)
All the WAMZ Member States except
Liberia , continued to implement the
ETLS during the period under review.
As at end 2016, a total of 23
enterprises had registered in The
Gambia. The total number of
companies that had registered in Ghana
was 430 in 2016. Guinea had
registered a total of 18 enterprises
since the commencement of the
Scheme, while a total of 14 enterprises
have been registered in Sierra Leone.
Nigeria has so far registered 1,734
enterprises.
Generally, participation in the Scheme
across the region improved in 2016,
relative to the previous year,
characterised by increased number of
approvals and fewer complaints across
ECOWAS. A total of 90 companies
and 273 industrial products were
approved in the region during the
period under review. The increased
number of approvals was on account of
enhanced sensitisation and
simplification of application process.
Bilateral cooperation between the
Member States as well as the efforts of
the Presidential Task Force in
resolving disputes relating to the
37
Scheme also contributed to the
improved implementation of the
Scheme.
However, in the WAMZ, the
compliance index score on ETLS
remained unchanged at 54.2 percent
compared with the previous year. All
the WAMZ Member States recorded
no change in the ETLS compliance
index score. In order to improve intra-
regional trade flows by removing
obstacles and encourage Member
States to implement the Scheme, a
Task Force on the free movement of
goods within ECOWAS was
established in May 2016, by the
ECOWAS Commission, to monitor
implementation of the Scheme and
address issues that may arise.
4.2.3 ECOWAS Common External
Tariff (CET)
Ten of the fifteen Member States of
ECOWAS, including two of the
WAMZ Member States were
implementing the CET in 2016.
Nigeria continued implementation in
the review period, after introduction of
the regime in 2015. Ghana commenced
implementation in 2016. The Gambia,
Guinea, and Liberia introduced the
CET in 2017, while Sierra Leone
continued to make preparations during
the year under review for the eventual
introduction of the CET.
The Zone‟s compliance index score on
CET rose to 70.8 percent, from 68.8
percent in the previous year, due to the
commencement of Ghana‟s full
implementation of the scheme in the
review period. The performance of the
rest of the Member States remained the
same, relative to the previous year. The
Gambia scored 62.5 percent, Guinea
75.0 percent, Liberia 12.5 percent,
Nigeria 100.0 percent and Sierra Leone
75.0 percent.
Ghana and Nigeria were the best
performers on the CET in the WAMZ.
During the review period, the two
countries commenced the application
of supplementary protection measures,
which aim at correcting the crowding
out of local products by excessive
imports from third countries. The rest
of the WAMZ Member states were
making efforts to commence
implementing the CET.
Following the adoption and the
subsequent implementation of the CET
by most Member States in the region,
efforts are now focused on making the
emerging customs union effective
through the formulation of a strategy
for enhanced implementation of CET.
4.2.4 Convention relating to Inter-
State Road Transit (ISRT) of Goods
Implementation of the ECOWAS
Regional Road Transport and Transit
Facilitation Programme, including the
ECOWAS Joint Border Posts (JBP),
continued to be affected by several
challenges including weak financial
position of national guarantors, non-
recognition of the logbook by some
countries, lack of weigh bridges,
among others.
The Zone‟s compliance index score on
ISRT improved to 52.1 percent in
2016, from 45.8 percent in 2015,
underpinned by improvements
recorded in Nigeria and Sierra Leone.
The rest of the Member States of the
WAMZ maintained their performances
in the review period, relative to the
previous year. The Gambia scored 62.5
percent, Ghana 100.0 percent, Guinea
38
and Liberia 12.5 percent each, while
Sierra Leone Scored 87.5 percent.
The Joint Border Posts (JBP)
programme, which aims at bringing
border officials together to undertake
one-stop controls at the land borders
between Member States was on-going.
Noepe JBP (between Ghana and Togo)
Since the completion of the
construction of the Noepe Joint Border
Post (JBP) between Ghana and Togo
and its handing over to the two
countries, the facility has not yet been
put to use due to lack of equipment.
Seme-Krake JBP (between Benin &
Nigeria)
The Construction of the Seme/Krake
Joint Border Post (JBP) between
Nigeria and Benin is on-going with
works 97 percent completed as at the
end of September, and final
completion was expected by the end of
October, 2016.
Noe-Elubo JBP (between Ghana and
Cote d’lvoire)
The engineering design and tender
documents were being review to
enable works to begin soon on the
Noe-Elubo Joint Border post between
Ghana and Cote d‟Ivoire.
4.2.5 Free Movement of Persons,
Right to Reside and Establish
The protocol on the right to move
freely, reside and establish in any
ECOWAS country is being observed
by all Member States of the WAMZ.
With regard to free movement of
persons, all WAMZ Member States
have adopted the common ECOWAS
passport, waived visa requirement and
grant 90-day stay without resident
permit for all ECOWAS citizens.
However, resident permit fees are
being charged and applied unevenly
across the Zone. The newly introduced
ECOWAS biometric identity card,
which is expected to replace the travel
certificate, has not yet been applied in
any WAMZ Member State, except in
Ghana, where a national biometric
identity card has been introduced. As
regards the right to establish, the
protocol is applied selectively and
according to national laws of the
respective Member States.
The Zone‟s compliance index score on
this protocol improved to 71.7 percent,
compared to 70.0 percent in the
previous year, influenced by the
introduction of national biometric
identity card in Ghana. The
compliance index score of Ghana on
this protocol rose to 60.0 percent in the
review period, relative to 50.0 percent
in the previous year. However, the
performance of the rest of the Member
States of the WAMZ remained flat.
The Gambia scored 60.0 percent,
Guinea 90.0 percent, Liberia 50.0
percent, Nigeria 90.0 percent, and
Sierra Leone 90.0 percent.
4.2.6 Harmonised Documentation
and Automated Customs Clearance
Procedures
Customs clearance procedures have
been automated and deployed to major
ports across the Zone. With the
exception of Ghana and Nigeria, which
operate on advanced automated
platforms, the Automated System of
Customs Data (ASYCUDA) is being
widely applied in the rest of the
WAMZ Member States.
The Gambia, Sierra Leone, and Guinea
adopted ASYCUDA++, Liberia uses
ASYCUDA World, while Ghana uses
GCnet and Nigeria adopted an
39
Integrated Custom Information System
(NICIS). However, customs clearance
procedures are yet to be harmonised,
awaiting the finalisation of a regional
customs code. In the interim, the
Member States‟ clearance procedures
have been harmonized with that of
World Customs Organization (WCO).
The Zone‟s compliance index score on
this programme area was maintained at
83.3 percent in 2016, compared with
2015. All the Member States sustained
the previous year‟s index core and
ranking. The Gambia, Ghana and
Nigeria scored 100.0 percent each,
Guinea and Liberia scored 75.0 percent
each, while Sierra Leone scored 50.0
percent during the period under
review. The leading performers were
The Gambia, Ghana and Nigeria.
4.2.7 Harmonisation of Indirect
Taxes
The Gambia, Ghana, Guinea, Nigeria
and Sierra Leone applied Value Added
Tax (VAT). The VAT rates, however,
differ across the zone: The Gambia (15
percent), Ghana (17.5 percent), Guinea
(18.0 percent), Nigeria (5.0 percent)
and Sierra Leone (15.0 percent). In
Liberia, the passage of the VAT Bill,
which was intended to replace the
Goods and Services Tax (GST), was
awaiting legislative approval.
4.2.8 ECOWAS Quality Programme
and Standards Harmonisation
All the WAMZ Member States
continued to participate in the
ECOWAS Quality Programme and
Standards Harmonisation. Forty-five
products, mainly food items, were
identified for harmonisation under the
ECOWAS Quality Programme and
Standards Harmonisation. The
programme was launched in The
Gambia and training was on-going.
Guinea‟s compliance with the regional
standards was affected by poorly
equipped laboratory. In Liberia, a
Standards Authority has not yet been
set up, but a National Standards
Laboratory has since been established.
Sierra Leone has adopted 133 out of
the 250 standards of the International
Standards Organisation (ISO) and the
African Regional Standards
Organisation (ARSO). A Product
Certification scheme had been
established and a quality mark for all
products that meet the approved
standards was being developed.
4.2.9 Economic Partnership
Agreement (EPA)
Economic Partnership Agreement
(EPA) between the European Union
(EU) and Economic Community of
West African States (ECOWAS) has
been signed by all WAMZ Member
States except, The Gambia and
Nigeria. While efforts are being made
to encourage them to accede to the
Agreement, the ECOWAS
Commission has embarked on a
number of priority activities to prepare
ECOWAS region for the eventual
implementation of the Agreement.
4.2.10 Infrastructure for Regional
Development
Transport Modes
• Roads
The total length of roads in The
Gambia is estimated at 1,413.2 km, of
which the paved portion is 435.6 km,
representing 30.8 percent of total
roads. In Ghana, the total length of
roads comprising trunk, feeder and
urban, is estimated at 72,380.65 km, of
which total paved is 16,998.32 km,
representing 23.48 percent. Guinea has
40
4000 km of roads of which 1600km is
paved, representing 40.0 percent. In
Liberia, the total length of road is
estimated at 11,535Km, of which
983Km is paved, representing 8.5
percent of total roads. The total length
of roads (federal roads) in Nigeria is
estimated at 33,801.1 km in 2015, of
which the paved portion is estimated at
29,424.6 km, representing 87.05
percent of total roads. The total length
of roads in Sierra Leone is 11,300 km,
of which 1,372 km are paved,
representing 12.14 percent of total
roads.
• Railways
The Gambia has no railway line, but
plans are underway for the
development of a rail network in the
country. In Ghana, the authorities had
developed a Railway Master Plan to
further develop railways
transportation. To this end, Ghana
Railway Development Authority has
reconstructed the Sekondi-Takoradi via
Kojokrom section of the Western Line
to provide suburban passenger rail
transport service between Sekondi and
Takoradi. In Guinea, a feasibility
study was undertaken for the
construction of the Conakry-Kankan-
Bamako railways. Liberia has three
railway lines, of which one is
functional and used for transporting
iron ore. One stretches from Bomi to
free port of Monrovia, the second is
from Sanniquellie to the port of
Buchanan and the third is from Bong
mines to the free port of Monrovia.
Nigeria had a total route length of
3,692.5 km of narrow gauge rail lines
as at end-June 2016. The construction
of the first standard gauge railway
modernization project linking Abuja to
Kaduna, spanning 187.5km with nine
stations was completed and
commissioned, and commencement of
the Minna-Kaduna intercity mass
transit train service. The only railway
in Sierra Leone is about 198 kilometres
and is predominantly used to transport
iron ore.
• Aviation
All the WAMZ Member States
remained committed to the
Yamoussoukro Open Skies declaration
and have liberalised their aviation
industry to facilitate the introduction of
new airlines. None of the Member
States of the WAMZ has a national
carrier. They rely on private operators.
The volume of passenger traffic
between the Member States of the
WAMZ is constrained by limited
connectivity, among other issues.
Electricity and Telecommunications
• Electricity
The ratio of electricity generated to
installed capacity in The Gambia fell
to 28.90 in 2016, from 30.40 in 2015.
In Ghana, the energy situation has
improved in 2016, compared to the
previous year due to the introduction
of fast track power plants such as
AMERI plant with a capacity of 250
MW, VRA KTT of 220MW, Asogli
upgrade by 160MW, AKSA of 170
MW and repair of broken down plants.
The power deficit of 700MW at end of
2015 had been eliminated completely.
At end-year 2016, the installed
capacity had been increased to
4000MW, from 2900MW in 2015. In
2016, the total electricity generated
was 13,022 GWh of which 11,418
GWh was consumed.
In Guinea, the newly completed Kaleta
dam project within the framework of
The Gambia River Basin Project
(OMVG) with a capacity of 240 MW
41
has boosted energy supply in the
country. In Liberia electricity
generation rose to 16.1 million
kilowatts as at end June 2016, from
15.6 million kilowatts in the
corresponding period of the previous
year, due to the commissioning of two
additional Heavy Fuel Oil (HFO)
power plants. In Nigeria, total
electricity generated was estimated at
3500MW, compared to 3,441.9 MW in
2015. The available capacity was
estimated at 5300MW, while the
installed capacity was estimated at
12048.4 MW. In Sierra Leone, power
generated during the review period was
estimated at 298.6 GW/hr, compared to
255 GW/hr in 2015. Total installed
capacity dropped to 112.5 MW, from
128.7 MW in the previous year, while
available capacity increased to 106.54
MW, from 100.5 MW.
• Telecommunications
The telephone network coverage in
The Gambia is about 97 percent, and it
is mainly mobile network. The
telephone penetration is about 120
percent, while the internet penetration
is about 28 percent. Ghana has
sufficient telecommunication
infrastructure that supports 4G value
added services and innovation. The
total number of mobile voice
subscriptions in the country increased
from 35.0 million as at end-December
2015, to 38.3 million in 2016. The
penetration rose by 9.42 percent
resulting in total penetration rate in the
period under review to 136.34 percent.
The number of mobile users in Guinea
reached 10.597 million, at a
penetration rate of 97.0 percent in
2016. Mobile telephone coverage in
Liberia is estimated at 85.6 percent of
the population and internet access at
32.4 percent. In Nigeria, total number
of active lines grew to 154.53 million,
from 151.02 million in 2015.
Teledensity increased to 110.38 per
100 inhabitants, from 107.87 per 100
inhabitants in 2015. Access to the
internet fell to 92.4 million, compared
to 92.7 million recorded in the
corresponding period of 2015, due to
the decline in economic activities. In
Sierra Leone, mobile voice telephony
has covered 70 percent of the country
and approximately 66,667 per 100,000
persons have mobile phones. Internet
penetration has improved to 5 percent
in 2016, from 2 percent in 2015.
4.3 Payments System Development
in the WAMZ
The implementation of the West
African Monetary Zone (WAMZ)
Payments System Development Project
in The Gambia, Guinea, Liberia and
Sierra Leone funded by the African
Development Bank (AfDB) was
successfully completed in 2016.
Nigeria and Ghana continued to make
giant strides in the development of
payments system in 2016.
In the Gambia, the Payments System
Development Project provided
platform for the country to register
substantial gains in its attempt to make
the Gambian economy cashless. The
National Payment Switch of the
Gambia (Gamswitch) was fully
launched in 2016 with Interswitch PLC
of Nigeria as operator. The Gamswitch
was at the forefront of promoting
financial inclusion in the payment
landscape of the Gambia through
interoperability amongst the
participating banks. It has also
increased efficiency and velocity in the
electronic payment value-chain and
reducing overall investment and
operation cost for the industry as
42
regards digital commerce. The
National Payment Switch currently has
an interface with the RTGS platform
and performs daily settlements of
participants via RTGS. Services
provided by the National Switch
include POS retail payments, Mobile
based Payments, Internet/Web-based
payment, P2P transfers and
International (in-bound) Cash
Remittance.
In Ghana, major payment streams
experienced considerable growth in
both volumes and values. Cheques
continued to be the major non-cash
retail payment instruments in terms of
values of transactions while mobile
money financial services also
accounted for significant volumes of
retail payments transactions. The
Ghana Interbank Settlement System,
which is Ghana‟s Real Time Gross
Settlement (RTGS) system, continued
to provide the platform for making
high value payments for banks and
their customers. The national switch,
Gh-Link, had 36 member institutions
connected to it as at end 2016. These
included 26 banks, 8 savings and loans
and 2 non-bank financial institutions.
Total volumes and total value on the
Gh-Link platform increased by 8.8 per
cent and 46. 5 per cent, respectively.
The mobile money space continued to
grow since the passage of the
Electronic-money Issuers and Agents
Guidelines in July 2015. There were 4
Mobile Network Operators (MTN,
TIGO, AIRTEL and VODAFONE).
The number of registered mobile
money customers increased by 50.42
per cent as at end 2016. The number of
Automatic Teller Machines (ATM)
and Point of Sales (POS) increased by
111.4 per cent and 34.29 per cent for
the period under review.
In Guinea, the implementation of the
WAMZ Payments System
Development Project was completed in
2016 and working efficiently. The
Infrastructure upgrade contractors in
Guinea had delivered on their contracts
and were on the ground to support the
main Solution Providers. The Central
Bank of Guinea (BCRG) conducted a
study on the establishment of the
National Switch. The study was
entrusted to the Interbank Monetary
Grouping of West African Economic
and Monetary Union (GIM-UEMOA)
which has a 14 years‟ experience for
technical assistance. BCRG is
optimistic about the establishment of
the National Switch within a
reasonable time.
All the components of the WAMZ
Payments System Development Project
went live in Liberia in 2016 and were
working efficiently. All the Solution
Providers and Contractors were
providing necessary post go live
support in line with the contract, the
Service Level Agreement (SLA) and
the mandatory maintenance period.
The Central Bank of Liberia during the
course of the year continued to build
on the achievement of the WAMZ
Payments System Development Project
with the following initiatives:
 The Payments System Act
enacted by the National
Legislature in 2014, was
printed into hand bills
 Completion of the Payment
System Rules (ACP/ACH and
RTGS) and awaiting approval
from the Board
 Payment of the Government of
Liberia Taxes through the
RTGS System in collaboration
43
with the LRA and the
Commercial Banks.
 Launching of National Shared
Switch (shared switch, telco,
middleware, scheme gateway)
with four Commercial Banks
connected in 2016, while the
other banks were in advance
stages of connectivity.
In line with the Payment System
Vision 2020 (PSV2020) agenda,
Nigeria initiated various reforms in
2016 in an effort to further increase the
safety, reliability and efficiency of the
payments system. As part of the
strategy in ensuring the successful
completion of Bank Verification
Number (BVN) implementation in
Nigeria, the Central Bank of Nigeria
(CBN) undertook the following during
the review period:
i. BVN enrolment for Nigerian
bank customers in diaspora and
security personnel who were on
special assignment was
extended till end-December,
2016.
ii. A draft Framework for watch-
listing fraudulent customers in
the banking industry using the
BVN database was issued.
iii. Savings account customers
with BVN were allowed to
deposit cheques of not more
than N2 million into their
accounts, per customer, per
day.
The Nigeria electronic Fraud Forum
(NeFF) in collaboration with the
Nigeria Police established the first ever
dedicated e-Payment and Card Crime
Unit of the Nigerian Police.
The volume of inter-bank fund
transfers through the CBN RTGS
increased by 23.92 percent while the
value decreased marginally by 0.69
percent. The volume and value of
cheques decreased by 12.97 per cent
and 5.91 per cent, respectively. The
volume and value of electronic
transactions increased considerably.
The volume and value of mobile
payments increased by 7 per cent and
71 per cent, respectively, reflecting
growing public awareness in the
system.
The CBN granted approval to
Interswitch Financial Inclusion
Services (IFIS) and Innovectives to
operate as Super Agents to enable the
two companies to grow an active agent
network for delivering financial
services to both the banked and
unbanked public. Guidelines for the
operations of Treasury Single Account
(TSA) by state governments in the
country was issued by the Bank. The
draft Payments System Management
Bill was approved for onward
submission to the National Assembly
for enactment as an Act.
In Sierra Leone, the Payments System
Development Project provided
platform for the country to launch the
mobile money guidelines and the
implementation of the National Switch
project. The guidelines would make
way for the licensing and operation of
the mobile money operators while the
National Switch would move the
society from one that is predominantly
cash based to a cashless (electronic)
society. In addition to the above, 2016
also witnessed the introduction of rules
and procedures for the operation of the
RTGS, ACH and the CSD with a
robust pricing mechanism for the use
of the systems. To further enhance
efficiency in the timely delivery of
44
payment services nationwide, the Bank
is now working closely with the
commercial banks for the
establishment of a National Switching
Company that would interconnect and
make interoperable the various
payments systems of all commercial
banks. Other innovations introduced
during 2016 by the Bank of Sierra
Leone were automated upload of staff
salaries and auto reconciliation.
4.4 Developments in the Financial
Sector of Member States
During the review period, the
performance of the financial sector in
the West African Monetary Zone
(WAMZ) was mixed owing to the
relative impact of macroeconomic
developments at the international
scene.
4.4.1 Banking
Efforts were made by Member States
at ensuring adequate and appropriate
supervision of their banking sectors in
order to increase resilience and
enhance their capacity for
intermediation and other pertinent
banking roles. Despite the harsh
macroeconomic conditions that
characterized the period under review,
the WAMZ banking system remained
stable. Although key balance sheet
items such as credit, deposits and
assets declined in the review period
largely due to exchange rate
depreciation, the banking system
remained sound, maintaining capital
levels well in excess of minimum
prudential requirements. The decline in
commodity prices and the resultant
impact on foreign reserves portended
risks to banking system stability
through increase in non-performing
loans. In addition, lending rates
remained high, underlying the increase
in net interest rate spread.
Nevertheless, the banking system in
the WAMZ is expected to remain
sound and stable with the continued
improvement in the regulatory and
supervisory environment in Member
States, as countries take steps to
implement the Basel Core Principles
(BCPs), Basel II & III, Risk-based
Supervision (RBS) and International
Financial Reporting Standards (IFRS).
The Gambia‟s banking industry
remained adequately capitalized with
all the banks complying with the
minimum capital-adequacy ratio of
10.0 percent. All twelve (12) licensed
commercial banks and one Islamic
bank met the minimum capital
requirement. Capital and reserves of
the industry stood at D4.7 billion at
end-December 2016, representing an
increase of 5.3 percent compared to
December 2015. The risk-weighted
capital adequacy ratio averaged 38.4
percent in December 2016, and the
total assets of the industry rose by 7.8
percent to D31.58 billion at end-
December 2016. The NPL ratio
increased from 6.5 percent to 9.3
percent in December 2016.
Profitability measured by total
earnings of the industry decreased to
D144.6 million in December 2016
from D145.4 million in 2015.
Similarly, return on assets (ROA) and
return on equity (ROE) decreased to
2.0 percent and 12.2 percent
respectively in December 2016 from
2.1 percent and 13.8 percent a year
earlier.
In Ghana, the banking industry
remained sound and relatively stable
during 2016. Four (4) new banks were
licensed in 2016 bringing the total
number to 33. Total assets of the
banking system increased by 11.9
45
percent to GHȼ 82.6 billion in 2016.
Financial soundness indicators
improved based on the SLEMS rating
system. All banks complied with the
minimum capital requirement. The
industry‟s average capital adequacy
ratio (CAR) was 18.04 percent in
December 2016, well above the 10.0
percent minimum. However, The Bank
of Ghana (BoG) in 2016 launched an
update of the 2015 Asset Quality
Review (AQR) which revealed that
despite the resolution of the energy
sector debts, some banks had capital
adequacy ratios below the required
10.0 percent. The central bank had
instituted capital restoration plans in
accordance with the new Banks and
Specialised Deposit-taking Institutions
(SDIs) Act, 2016 (Act 930) with these
banks.
In spite of these developments, the
industry remained profitable even
though both return on assets (ROA)
and return on equity (ROE) declined to
3.8 percent and 17.6 percent, from 4.5
and 21.4 percent, respectively in 2015,
due largely to the unfavourable
macroeconomic environment. The
quality of bank assets deteriorated as
the ratio of non-performing loans
(NPL) to gross loans increased to 17.4
percent in December 2016 from 14.9
percent in the previous year, largely on
account of non-performance of energy
sector related loans as commercial
banks were exposed to institutions
such as the Volta River Authority
(VRA), the Tema Oil Refinery (TOR)
and Bulk Oil Distribution Companies
(BDCs) as well as the Finatrade Group.
Nonetheless, government had passed
the Energy Sector Levy Act, 2015 (Act
899) to mobilize revenue to defray
VRA and TOR energy debts with the
banks. As a result, some payments
were made to the banks in the period
under review.
In 2016, Guinea‟s banking
environment was made up of sixteen
(16) banks with a network of one
hundred and sixty-two (162) branches,
one hundred and fifty (150) ATMs and
one thousand, nine hundred and
ninety-three (1993) employees for over
five hundred and twenty thousand
(520,000) customers. There were seven
(7) branches and seventeen (17) ATMs
newly opened in 2016. Guinea‟s
banking industry remained dominated
by the three “major banks”
representing 57.0 percent of total
balance sheet of the sector, 60.0
percent of collected deposits and 56.0
percent of allocated credit. ECOBANK
is ranked first in terms of total balance
sheet (23.0 percent) and collected
deposits (22.0 percent), while the
BICIGUI is ranked first in terms of
allocated credit, the SGBG is third in
respect to the three criteria.
The balance sheet of the banks in 2016
indicated that total assets of the
banking system increased by 10.0
percent, rising from GNF 16,121
billion to GNF 17,724 billion. Profit of
the Guinean banking system increased
by GNF 10 billion to GNF 370 at end-
December 2016 compared with GNF
360 billion at end-December 2015. The
return on assets (ROA) stood at 2.17
percent compared with 2.24 percent at
end-December 2015. The Return on
Equity (ROE) was 20.63 percent
compared with 27.44 percent at end-
December 2015.
On the prudential regulation
compliance, the banks‟ situation as at
31st December 2016 was as follows:
four banks out of fifteen (15) active
46
banks breached the minimum share
capital requirement of GNF 100
billion. Only a bank was in breach of
the minimum ratio of solvency
requirement of 10.0 percent. All the
banks were compliant with the
minimum cash requirement in Guinean
Franc of 100.0 percent. Nonetheless,
six (6) banks breached the cash
requirement in foreign currencies, of
which a bank was also in breach of
overall liquidity. All the banks were
compliant with the risk concentration
norms. Credit portfolio of the banking
system significantly deteriorated in
December, 2016; loss ratio increased
from 4.7 to 7.37 percent and default
rate from 6.21 percent to 9.39 percent.
During the review period, the number
of banks in Liberia was nine (9). The
Central Bank of Liberia (CBL) closed
the First International Bank Liberia
Limited (FIBLL) as a result of
regulatory breaches. At the same time,
the CBL licensed a new bank, Groupe
Nduom Bank Liberia Limited
(GNBLL) in June 2016. GNBLL
acquired the defunct FIBLL.
Commercial banks‟ branch networks,
including windows and annexes across
the country rose to ninety-three (93) in
2016, from eighty-seven (87) in 2015.
Total assets, capital and deposits rose
by 5.4 percent, 21.2 percent and 3.8
percent in 2016, respectively,
compared with 7.5 percent, 0.8 percent
and 16.0 percent in 2015, respectively.
Liquidity in the banking sector
remained strong during the year with a
liquidity ratio of 51.4 percent; which is
well above the regulatory threshold of
15.0 percent. All nine (9) banks
recorded liquidity ratios above the 15.0
percent minimum. Return on Equity
(ROE) and Return on Asset (ROA) for
2016 were 7.8 percent and 1.1 percent,
compared with negative -6.6 percent
and -0.8 percent respectively, for 2015.
The banking sector continued to show
strong capital position. With respect to
total reported capital, the sector
recorded an average of US$13.5
million, which exceeded the minimum
requirement of US$10.0 million and
represented an increase of 21.2 percent
compared with the average capital for
2015. Asset quality, on the other hand,
measured by the Non-Performing
Loans (NPLs), witnessed a significant
improvement to 11.0 percent in 2016,
from 13.0 percent in 2015, due mainly
to stringent policy measures instituted
by the CBL against delinquent
borrowers as well as recovery efforts
of the banks
For Nigeria, the financial sector
remained stable during the year 2016,
despite the challenges emanating from
both the global and domestic fronts.
Principally, the continuous softening of
crude oil prices, which led to a fall in
the gross official reserves and
depreciation of the naira, adversely
affected some banking sector
indicators and performance of the
capital market. In 2016, the
composition of banks included 20
Deposit Money Banks; 4 Merchant
Banks and a non-interest bank. The
categorization of banks showed ten
(10) International, ten (10) National,
one (1) Regional Bank and two (2)
Foreign Owned Banks. The banking
industry remained resilient in 2016,
despite the weak performance of the
financial soundness indicators and the
deterioration of assets quality, relative
to the corresponding period of 2015.
The ratio of non-performing loans
(NPLs) to gross loans deteriorated to
14.0 per cent at end-December 2016
47
from 5.3 percent at end-December
2015. This was attributed to the tough
challenging macroeconomic
environment in the review period. The
ratio of core liquid assets to total assets
decreased by 2.2 percentage points to
16.3 percent at end-December 2016
from 18.5 percent at end-December
2015. Also, the ratio of core liquid
assets to short-term liabilities
decreased by 2.6 percentage points to
24.5 percent at end-December 2016,
compared with 27.1 percent at end-
December 2015.
Capital-based indicators remained
above the Basel minimum threshold in
2016. The ratio of regulatory capital to
risk weighted assets decreased by 3.0
percentage point to 13.9 percent at
end-December 2016, compared to 16.1
percent at end-December 2015.
Similarly, the ratio of Tier 1 capital to
risk weighted assets declined by 4.2
percentage points to 12.9 per cent at
end-December 2016 from 17.1 per cent
at end-December 2015. Two out of the
three income and expense indicators
also indicated decrease in performance
in 2016, relative to 2015, suggesting
decrease in the efficiency of the
banking industry to intermediate. The
ratios of interest margin to gross
income and personnel expenses to non-
interest expenses, decreased by 13.8
and 5.5 percentage points to 50.0 and
30.5 percent at end-December 2016,
respectively. The ratio of non-interest
expenses to gross income also
decreased slightly by 0.4 percentage
points to 63.8 percent. The non-
performing loans (NPLs) ratio
increased from 5.3 percent in the
preceding period of 2015 to 14.0
percent at end-December 2016, and
was above the prudential limit of 5.0
percent. This development could be
attributed to banks‟ exposure to the oil
and gas sectors and the slowdown in
economic activities. The ratio of non-
performing loans (net of provisions) to
capital significantly increased to 38.4
percent at end-December 2016 from
5.9 percent at end-December 2015,
implying a huge decline in the sector‟s
capacity to withstand the negative
effects of non-performing loans. The
increase in NPLs remains a key risk to
the Nigerian banking industry.
In Sierra Leone, there are fourteen (14)
banks across the country with one
hundred and five (105) branches
compared with 13 with one hundred
and three (103) branches in 2015.
However, only one bank met the
minimum unimpaired paid up capital
requirement of Le 30.0 billion. The
average Capital Adequacy Ratio
(CAR) of banks remained far above
the 15.0 percent minimum
requirement, although it declined to
30.7 percent from 33.9 percent as at
end-December 2015, an indication that
the loss absorption capacity of the
industry was strong. However, two
banks failed to meet the Capital
Adequacy Ratio. Also, liquidity of
the banking system remained robust as
all banks met the overall minimum
liquidity ratio of 30.0 percent at end
December 2016. However, the
industry‟s non-performing loans
remained high, though it declined from
31.7 percent as at December 2015 to
22.7 percent as at December 2016.
Moreover, all the banks recorded pre-
tax profits as the unaudited pre-tax
profit of the industry increased by
Le58.7 billion (37.1 percent) to
Le217.1 billion at end-December 2016.
Total assets of the banking industry
grew by 19.8 percent to Le6.3 trillion
at end-December 2016 with three
48
banks accounting for 43.1 percent of
the industry total assets. The deposits
base of the banking system increased
by 18.4 percent to Le5.1 trillion, while
the credit portfolio grew by 11.9
percent to Le1.50 trillion in the review
period.
4.4.2 Banking Supervision and
Regulation
In 2016, Member States endeavored to
implement programmes and policies to
ensure financial regulation and
supervision meet minimum
international standards. Significant
strides were recorded during the
review period on the implementation
of International Financial Reporting
Standards (IFRS), Risk-Based
Supervision (RBS), Basel II and the
automation of banking supervision
processes.
Excluding Guinea, all Member states
had adopted IFRS and continued to
prepare and publish financial
statements in compliance with its
standards. In Guinea, the Central bank
was working towards the adoption of
IFRS with the introduction of a new
accounting framework for banks as a
requirement. Regarding the
implementation of risk based
supervision (RBS), Ghana, Guinea,
Liberia and Nigeria had adopted the
approach and conducted examinations
using the methodology. The Central
Bank of The Gambia (CBG) was
working with the IMF‟s AFRITAC
West 2 to develop the necessary
human capacity, guidelines as well as
conduct a pilot test for risk based
supervision. The Bank of Sierra Leone
(BSL) was expecting a new long-term
Advisor from the IMF to support its
RBS implementation. The Advisor is
expected to review key guidelines and
relevant frameworks which were
developed by the previous Advisor
who left abruptly during the Ebola
epidemic. Meanwhile, BSL continued
to strengthen capacity of bank
examiners in preparation to roll out its
RBS.
In relation to the implementation of
Basel II, the Bank of Ghana (BOG) set
up in-house Committees to prepare the
relevant framework and guidelines for
the banking industry in preparation for
the implementation of Basel II. The
work of the Committees was supported
by a Consultant from the IMF. The
Central Bank of Nigeria (CBN)
completed the process for the
implementation of Basel II and banks
are expected to submit their Internal
Capital Adequacy Assessment Process
(ICAAP) reports for 2016. The
Gambia, Guinea, Liberia and Sierra
Leone continued to adopt a gradual
approach toward the implementation of
Basel II, with initial emphasis on
compliance with the Basel Core
Principles and pillar I of Basel II.
Member States continued to record
significant progress in the automation
of the banking supervision processes
such as Valtech Regulatory
Compliance System (V-RegCoSS) and
other software solutions for
strengthening off-site surveillance. In
The Gambia, the V-RegCoSS which
was launched in 2012 experienced a
temporary interruption and slowed
performance. In Ghana, the BOG was
planning to introduce a system that
would accommodate IFRS, Basel II
and III requirements as well as collect
raw data from banks. In Guinea,
Central Bank of Guinea was expecting
to receive a grant from the African
Development Bank to finance the
49
automation of reporting systems of
banks and microfinance institutions. In
Liberia, the CBL officially launched
the V-RegCoSS on April 4, 2016 and
its parallel run lasted till October 2016.
The Bank further issued a Directive for
all banks to submit all prudential
returns through the V-RegCoSS
beginning November 1, 2016 with
penalties for non-compliance. Hence,
banks submitted all the clusters
through V-RegCoSS though there were
challenges with the quality of the
reports. The system operated smoothly
despite minor drawbacks.
In Nigeria, the CBN awarded a
contract to a vendor for the
implementation of an Integrated
Regulatory System (IRS) which would
accommodate Basel II and III
requirements, non-interest banking and
International Financial Reporting
Standard (IFRS). The new system
which could interface with other IT
solutions in the Bank was expected to
go live in about two years. In Sierra
Leone, the parallel run of V-RegCoSS
which was launched in 2014 lasted till
December 2016. All banks were
directed to submit prudential returns
through the V-RegCoSS beginning
January 2017.
Some other developments in regulation
and supervision in the Zone are
outlined as follows:
The BoG initiated the implementation
of the Basel II programme in 2007 but
was suspended to put in place the
necessary supervisory guidelines.
Currently, the Bank has initiated the
process of re-implementing the Basle
framework to the Ghanaian banking
industry. As part of the
implementation, the Banks and
Specialized Deposit Taking Institutions
Act 2016 (Act 930) has been passed
and draft guidelines on corporate
governance and risk management were
under review. The Bank intended to
implement the new Basel framework
by June 30, 2018.
In Guinea, several decisions of the
Approval Committee and Directives
from the Governor of the BCRG were
adopted in 2016, including the
implementing provisions for the
banking Act, as well as approval
decisions for some executives and
auditors of credit institutions. They
are among others:
o Directive N°64/DGSIF/DSB
dated 22nd June, 2016 relating
to the corporate governance of
Credit institutions;
o Decision N°D/2016/004/CAM
dated 16th December, 2016 on
shareholding by credit
institutions in existing
companies or in the process of
establishment. This Decision is
an implementing text of Article
7 under the banking Act. It sets
the limits on this shareholding,
notably:
 15 percent of credit
institution‟s net equity per
share;
 60 percent of credit
institution‟s net equity for total
shares; and
 30 percent of share capital or
voting rights of issuing
company per share
For Nigeria, some of the reforms
undertaken by the Bank to boost its
regulatory and supervisory activities
during the period comprised the
following: a Framework on Watch-list
50
for the Nigerian Banking System,
creation of a project team, assigned
with the task of developing guidelines
to support the implementation of the
IFRS 9; revision of the template for the
submission of CAR by commercial
banks as part of the measures to
strengthen the requirements of Basel
II/III; and publication of both
qualitative and quantitative disclosures
of banks‟ core activities, risk profiles
and methodology to stakeholders. To
enhance supervision of the Domestic
Systematically Important Banks (D-
SIBs), CBN was developing guidance
notes that would provide clarity on
regulatory expectations and ensure
standardization across the industry.
The CBN monitored compliance of
banks to the recommendations of the
Money Laundering, and Foreign
Exchange examination reports of 2015.
The monitoring exercise revealed an
acceptable level of compliance to the
recommendations. The Bank, in
compliance with Financial Action Task
Force (FATF) and Anti-Money
Laundering/Combating the Financing
of Terrorism (AML / CFT)
requirements, directed banks to appoint
Executive Compliance Officers, not
below the rank of Executive Director,
who will be responsible for compliance
with regulations. In addition, Nigeria is
no longer subject to FATF‟s
monitoring process under its on-going
global AML/CFT compliance process
and the authorities also applied for
membership of the FATF.
To promote financial inclusion, some
activities were undertaken by the CBN
pursuant to the National Financial
Inclusion Strategy (NFIS). These
included: setting up of technical
committees to facilitate
implementation of NFIS at the State
level; development of financial
inclusion targets for banks;
introduction of two pilot schemes
namely E-Wallet for Farmers and
Social safety nets; commissioning of a
pilot study to examine the regulatory
options that could accelerate the
adoption of mobile money services;
and four working groups formed to
address the themes on Products,
Channels, Financial Literacy and
Special Intervention.
In the same vein, the NFIS Governing
Committee approved the 2015 annual
report of the National Financial
Inclusion Strategy for publication;
directed Nigerian Agricultural
Insurance Corporation (NAIC) to
implement the capacity building plan
for agricultural insurance from 2017;
requested Nigerian Postal Service
(NIPOST) to device ways to ensure
that the approved stamp duty would
not hinder financial inclusion goals;
urged the Securities and Exchange
Commission (SEC) to expedite action
on finalizing the Capital Market
Financial Inclusion Strategy, as well as
to finalize the draft guidelines on the
expansion of distribution channels for
capital market products; urged CBN
and National Insurance Commission
(NAICOM) to jointly review and
harmonize the Bancassurance
Guidelines; and set up a Committee to
review the NFIS.
In addressing the concerns of banks,
huge exposure to the oil and gas sector
and the low global oil price, a review
of banks‟ exposure to the sector was
conducted and this was followed by
the downgrading of majority of the
facilities, which were classified as non-
performing loans with additional
provisions effected. With regard to
51
cross-border supervision, no on-site
examination was conducted during the
review period. However, off-site
analysis and supervision continued as
the Bank received and analysed
prudential and other returns from off-
shore banking subsidiaries through the
parent banks.
The CBN continued with the redesign
of the Credit Risk Management System
(CRMS) and adopted the Bank
Verification Number (BVN) and
Taxpayer Identification Number (TIN)
as the only identifier for individual and
corporate borrowers. The essence was
to ensure inclusion of borrowers from
all lending institutions and consequent
increase in overall efficiency and
effectiveness in credit risk
management. At end-December 2016,
the number of borrowers (with credit
facilities above N1 million) registered
in the CRMS database stood at
221,822. Similarly, the number of
registered borrowers with outstanding
facilities rose by 69.08 per cent to
104,126 at end-December 2016 from
61,580 at end-December 2015 and the
number of running credit facilities in
the database also increased by 50.71
per cent to 181,987 at end-December
2016 from 120,750 at end-December
2015, due to increased compliance by
banks.
In the case of Sierra Leone, the Central
Bank continued to strengthen
compliance with international
regulatory standards during the review
period. Banks in Sierra Leone
complied with the Basel Core
Principles at different levels. In
addition, all banks continued to
prepare their financial statements in
compliance with the International
Financial Reporting Standards (IFRS).
The BSL continued to implement key
reforms to improve the financial
environment with the aim of deepening
financial markets and strengthen
stability. The Bank was reviewing its
base rate computation model to address
the concerns of commercial banks and
assess its actual impact on improving
transparency of loan pricing. The BSL
was also reviewing its legal
instruments, including the Banking Act
of 2011, Other Financial Institutions
Act, 2001 and Prudential Guidelines
for banks. A Credit Administration and
Recovery bill has also been drafted by
the Bank, in collaboration with
relevant agencies, which when passed
into law will improve credit risk
management in the banks. In addition,
the Collateral Registry User
Acceptance Test 1 & 2 has been
completed and the system has gone
live, with the resultant effect of
improving transparency and
information disclosure in the credit
market, encourage moveable asset-
based lending and speedy enforcement
of credit contracts, largely through
extra-judicial means in line with
Borrowers and Lenders Act of 2014.
The automation of the banking
supervision process was completed and
the vRegCoSS has gone live. The BSL,
with assistance from the IMF, is
working towards migrating from
compliance based to risk-based
approach to supervision, which will
allow for a more focused analysis of
the loan portfolio of banks in line with
the emerging challenges in the global
and financial environment
4.4.2.1 Cross Border Supervision
The College of Supervisors of the
West African Monetary Zone
(CSWAMZ) continued to provide the
main supervisory platform for
52
maintaining and enhancing financial
stability in the Zone. The College held
all the four statutory meetings
scheduled for 2016. The meetings
provided an avenue for discussions on
issues affecting the banking industry in
the Zone, including the necessity to:
build effective partnership and
collaboration in cross-border banking
supervision; develop a banking crisis
resolution framework; and reinforce
measures for combating money
laundering and the financing of
terrorism. Discussions during the
meetings also centered on member
countries experience with IMF
Financial Sector Assessment
Programmes; framework for the
supervision and regulation of Islamic
banking, framework for supervision
and regulation of microfinance
institutions including current
challenges facing the sector; and
capacity building for bank examiners,
among others.
Major achievements of the College
during the period included: Joint
examinations of ten (10) Nigerian bank
subsidiaries in 2016; improved
automation of banking supervision
processes with the launch of V-
RegCoSS in Liberia and Sierra Leone
and the commencement of the
implementation of IRS in Nigeria;
successful implementation of the
foundation, intermediate and advance-
level banking supervision courses and
the high-level seminar on IFRS 9 and
Macro prudential Analysis; the
resumption of Risk Based Supervision
(RBS) implementation in The Gambia
and Sierra Leone; and the
strengthening of Basel II
implementation in Nigeria and
commencement of preparations for
implementation in Ghana and Liberia.
Key supervisory concerns of the
College were: sustained high level of
non-performing loans (NPLs) in most
Member States; high concentration of
credit in some sectors of the economy;
declining profitability of banks due to
macroeconomic challenges and high
operating costs; high lending rates in
most Member States; unfavorable
macroeconomic developments across
the Zone such as the sharp depreciation
of domestic currencies, rising inflation
and sluggish economic growth; and the
potential risks associated with the non-
resolution of FI Banks in some
jurisdictions.
4.4.3 Insurance
The insurance industry in the WAMZ
continued to function smoothly though
it was affected by the depreciation of
currencies across the region. The
depreciation of currencies negatively
impacted gross premium, which
declined significantly during the
review period.
In The Gambia, the number of
insurance companies remained at 11 as
in 2015. In terms of composition, there
were 9 non-life and 2 life insurers. In
terms of ownership, 5 were fully
locally owned, 2 foreign owned, and 4
were of mixed ownership. The number
of brokers and agents increased to 10
and 74, respectively, from 9 and 68 in
the previous year. Total assets of the
sector slightly declined by 5 percent to
US$ 12.5million in 2016 compared to
US$ 13.28 million in 2015, due to the
depreciation of the Dalasi. Similarly,
there was a slight decline of 2 per cent
in gross premium to US$ 7.15 million
in 2016 from US$ 7.25 million in
2015, mainly on account of the
depreciation of the dalasi. In local
currency terms, both assets and gross
premium increased by 4 per cent and
53
20 per cent respectively, during the
period under review. Total claims
increased by 5.8 per cent to US$1.02
million in 2016 from US$ 984,400 in
2015. In local currency, however, total
claims increased by 32.7 per cent from
GMD5.5 billion in 2015 to GMD7.3
billion in 2016 reflecting significant
depreciation of the Dalasi. Insurance
penetration remained low and
unchanged, at about 1.0 percent in
2016 as in the previous year. The
minimum capital requirement
remained US$340,368 for both life and
non-life insurance and all companies
were adequately capitalized.
In Ghana, the number of insurance
companies increased to 52 (23 life
companies, 26 non-life companies, and
3 reinsurance) in the reviewed period
from 49 in 2015. There were up to 70
broking companies and 7,000
insurance agents. The total asset of the
insurance industry stood at US$880
million (GHc 3.7 billion) at end-
December 2016 compared with
US$790 million (GHc 3.0 billion) in
the preceding period, representing an
11.0 percent increase. In 2016, the
Non-life insurance companies made
underwriting losses; however,
investment income increased the
profitability of the sub-sector. On the
other hand, the Life insurance
companies made underwriting profit.
During the review period, insurance
penetration rate was 1.3 percent
compared to 1.17 percent in 2015,
excluding pension and health insurance
In Guinea, the number of insurance
companies remained at 11 as in 2015.
Total assets of the industry stood at
US$42.6 million. Gross premium
recorded for the period was US$34.2
million compared to US$ 36.4 million
in 2015, representing a decline of 6 per
cent attributable to the depreciation of
the Guinea Franc. However, in local
currency, gross premium increased by
8.2 per cent to GNF315 billion from
GNF291 billion in the review period.
Insurance penetration was at 0.42 per
cent in 2016 compared to 0.41 per cent
in 2015. The top 5 insurance
companies have 67 per cent of market
value.
In Liberia, the total number of
insurance companies remained at 20 as
in 2015. Of the twenty insurance
companies, there were 2 life, 1 non-life
and 17 composite. The market size
included 31 branches, 2 insurance
brokers, and insurance loss adjuster.
The number of insurance brokers
declined from 12 in 2015 to 2 in 2016
due mainly to the ongoing licensing
requirements. Total assets declined by
17 per cent to US$ 40.0 million in
2016 compared to US$48.2 million in
2015. Gross premiums declined
markedly to US$24.1 million in 2016
compared to US$42.3million in 2015,
representing a 43 per cent decline.
However, in local currency terms, total
assets declined marginally by about 1.4
per cent from LRD4.16 billion in 2015
to LRD4.0 billion in 2016 whereas
gross premium declined by 33 per cent
from LRD3.6 billion in 2015 to
LRD2.4 billion in 2016. Minimum
capital requirement for life insurance
and non-life insurance was
US$750,000 and US$1.5 million,
respectively. Gross annual claims was
US$6.46 million for the period under
review. The decline in both assets and
gross premium in US dollars is largely
as a result of the depreciation of the
Liberian dollar.
54
In Nigeria, the number of insurance
companies remained at 58 as in 2015,
comprising 15 life and 29 non-life
insurance, 12 composite insurance and
2 Reinsurance services. In 2016, there
were 3,300 registered Agents, 660
branches, 500 insurance brokers and
66 insurance loss adjuster‟s companies.
Gross premiums collected declined by
35.2 percent to US$ 990 million (₦302
billion) in 2016 from US$1.53 billion
(₦299.8 billion) in 2015 while total
assets also declined by 36.1 per cent to
US$2.6 billion (₦802 billion) from
US$4.07 billion (₦797.7 billion) in
2015. In naira terms, however, both
premium and assets actually increased
by ₦2.2 billion and ₦4.3 billion,
respectively. The decline in both
premium and assets was attributable to
the depreciation of the naira by about
54 percent during the period under
review. Premium income to GDP was
0.4 percent, whilst total claims paid out
was US$340 million (₦104 billion).
Also, 29 insurance companies were
registered on the stock market and 8
had foreign ownership.
In Sierra Leone, the total number of
insurance companies in the review
period was 11. The industry witnessed
the passage of the Insurance Act 2016
into law in July 2016. The Act aims at
introducing a number of reforms to
improve coverage, performance,
capital base, and sustainability of the
industry. The law is also expected to
strengthen the regulatory powers of
SLICOM, enhance compliance with
international standards and increase the
capital base of insurance companies.
4.4.4 Pension
Total assets of pension funds in the
WAMZ declined considerably to
US$23.6 billion in 2016 from US$28.8
recorded in 2015. The decline in
pension assets can largely be attributed
to currency depreciation in Nigeria,
which account for over 85 per cent of
WAMZ total pension assets, in
addition to unfavorable economic
climate in member States.
In The Gambia, there were four (4)
pension funds administered by the
Social Security and Housing Finance
Corporation (SSHFC) namely:
National Provident Fund (NPF) with
5,394 institutions and 129,829
members; Federated Pension Scheme
(FPS) with 84 institutions, of which,
58 are active and 14,260 members;
Industrial Injuries Compensation Fund
(IICF) (Civil Service) with 1
institution and 155,336 members; and
Industrial Injuries Compensation Fund
(Local Area Councils) with 5
institutions and 1,760 members. Total
assets was US$36.4 million as at end-
December 2016. Total contribution
was US$ 5.3 million for the period
under review. The main investment
areas were in time deposits, equities,
hotels and housing development.
In Ghana, the implementation of the
National Pension Act 2008 (Act 766)
continued during the review period.
As at end-December 2016, there were
120 service providers compared to 109
in the corresponding period in 2015.
These were made up of 75 Pension
Fund Managers, 29 Corporate Trustees
and 16 Pension Fund Custodians. Total
assets portfolio increased by 46.0
percent to US$ 3.3 billion (GHc 13.9
billion) in 2016 from US$2.25 billion
(GHc 8.55 billion) in 2015. This
comprised Tier 1 US$1.76 billion
(GHc 7.4 billion), Tier 2 US$ 499
million (GHc 2.1 billion) and Tier 3
US$452 million (GHc1.9 billion). The
institutional coverage of Tier 1 was
55
58.9 percent, Tier 2 was 23.0 percent
and Tier 3 was 0.5 percent. The
coverage on the tier two and three was
limited due mainly to lack of
confidence in the private pension trust
scheme. A standing committee had
been set up to initiate strategies to
increase the informal sector‟s
participation in the scheme. There was
also collaboration with the Registrar-
General to include the first and second
tiers as part of the form to be
completed by new employees.
In Guinea, the pension funds were
managed by two different structures.
On one hand there was the Caisse
Nationale de Sécurité Sociale (CNSS,
National Social Security); a public
agency vested with financial and
administrative autonomy to manage
and serve parastatal and private sector
workers. On the other hand, the
Division des Fonds de Retraite (DFR,
Pension Funds Division) within the
National Directorate of budget covered
the civil servants. The contribution
from workers to the CNSS was 23.0
percent, of which 18.0 percent was
paid by the employer and 5.0 percent
by the employee; this contribution
ranged from a floor of GNF 440.000 to
a ceiling of 1.5 million in charge of the
beneficiaries. In order to provide an
efficient social service to government
civil servants, the Government of
Guinea created on 31st March, 2014
two new structures : the Caisse
nationale de prévoyance sociale des
agents de l‟Etat (CNPSAE, National
Social Security for Public Employees)
and the Institut national d‟assurance
maladie obligatoire (INAMO, National
Compulsory Health Insurance
Institute). The CNPSAE was expected
to take over the powers of the current
Division of pensions while the
INAMO was expected to cover the
health insurance of government and
local civil servants and contractual
workers.
In Nigeria, the number of licensed
pension operators was 32 as at end-
December 2016, comprising four (4)
Pension Fund Custodians (PFCs),
twenty (21) Pension Fund
Administrators (PFAs) and seven (7)
Closed Pension Fund Administrators
(CPFAs). The pension assets declined
by 23 percent to US$20.1 billion at
end-December 2016 from US$26.3
billion in 2015. However, in naira
terms, pension assets significantly
increased by 19.0 percent to N6.13
trillion in 2016 from N5.15 trillion in
2015. The Contributory Pension
Scheme in Nigeria which commenced
with Federal ministries, departments
and agencies attracted 25 out of 36
states in Nigeria. A total of 10,120
employers were issued with certificates
of compliance with the provision of the
PRA as at December 31, 2016.
In Sierra Leone, membership of the
National Social Security and Insurance
Trust (NASSIT) increased marginally
by 1.0 percent to 227,618 at end-
December 2016 from 225,219 in the
previous year. Total amount of social
security contributions increased
marginally to US$43.7 million at end-
December 2016 from US$43.6 million
in the previous year. In local currency
terms, however, social security
contributions significantly increased by
27.9 per cent to Le314 billion in 2016
from Le245 billion in 2015. Net assets
declined by 22.5 per cent to US$ 139.2
million at end-December 2016 from
US$179.5 million in 2015. However,
in terms of local currency, the decline
in assets was marginal at about 1.0 per
56
cent to Le1.0 trillion in 2016 from
Le1.01 trillion in 2015, signifying the
adverse effects of the depreciation of
the Leone against the US dollars.
Benefits processed during the period
under review declined by 23 per cent
to US$11.2 million from US$14.6
million in the previous year, where as
in local currency terms, this reflect a
marginal decline of about 2 per cent
from Le82.3 billion in 2015 to Le80.5
billion in 2016.
4.4.5 Capital Markets
The West African Capital Market
Integration Council (WACMIC)
continued to harmonize the rules and
regulations for the issuance and trading
of financial securities across the
Economic Community of West African
States (ECOWAS).
The Technical Committee and Council
held a meeting each in March and
October 2016, respectively. The
Report of the Technical Committee
which was adopted by the Council
covered the following:
i. Translation of approved and
finalized Phases 1 and 2
documents into French and
Portuguese
ii. Certification of Brokers
iii. Proposed Tax Framework for
WACMIC
iv. Live data feeds / consolidated
live data feeds
v. Plan for implementing
International Conference, and
vi. Budget for Funding WACMIC
Secretariat and Activities
Following the withdrawal of the
Securities and Exchange Commissions
(SECs) in the Sub-region from
WACMIC, the ECOWAS Commission
organized a consultative meeting
between the West African Securities
Regulation Association (WASRA) and
WACMIC in August 2016, to review
and agree on the Regional Capital
Market governance and regulatory
structure in order to sustain the
integration initiative. At the 8th
WACMIC meeting in Casablanca in
October 2016, the Council adopted a
framework for cooperation and
collaboration between WASRA and
WACMIC and all other stakeholders.
The Framework which includes
institutional arrangement and
composition, areas of cooperation and
relationships and channels of
communication is to be presented to
WASRA for approval.
The Council has adopted a three-
phased approach to capital market
integration; namely: Sponsored Access
(Phase 1), Qualified West African
Broker (QWAB) (Phase 2) and Fully
Integrated West African Securities
Market (WASM) (Phase 3). The
Technical Committee identified the
high cost of technology associated with
enabling access to local Exchanges,
unfavourable macroeconomic
environment in most Member States
particularly the depreciation of
national currencies, and difficulties
with effecting cash settlement and
restrictions on cross-border capital
flows as challenges in the
implementation of Phase I. Regulatory
issues such as obtaining the
appropriate approval from regulators;
engagement with banks: liaising with
one or more settlement banks or
alternatively central banks in West
Africa for settlement purposes were
identified as challenges affecting the
implementation of Phase II.
57
At its 8th Meeting, the Council
acknowledged the ongoing efforts to
develop capital markets in The
Gambia, Guinea, Liberia and Sierra
Leone. It encouraged these countries to
learn from the experience of members
of WACMIC by starting on small scale
and leveraging on the technology
infrastructure in other member
markets.
In Ghana, the capital market continued
to be challenged by the weak
macroeconomic performance of the
economy and the high yields on the
money market instruments. Activity on
the Ghana Stock Exchange (GSE)
declined further in 2016, evidenced by
the decline in the composite index by
15.3 percent. Market Capitalization
also fell by 7.8 percent to
GHc52,690.99 million in 2016. The
bond market thrived and expanded as
investors sought fixed income
instruments. Ghana Alternative
Market (GAX) recorded 17 companies
additional listing in 2016. These were
explained by the poor performance of
equity shares, given the challenging
macroeconomic situation during the
period under consideration. As at end-
year 2016, the membership of the
Ghana fixed income market was 36.
The Ghana Commodities Exchange
(GCX) which aims at improving the
agricultural sector continued to
conduct feasibility studies in-order to
identify products to be included. Initial
study results point to the eventual
inclusion of 14 commodities.
However, three products have already
been identified for possible trading on
the exchange. Relevant work is on-
going to develop appropriate
warehouse receipt systems with the
support of USAID.
In Nigeria, the Stock market continued
to be characterized by share losses, due
to adverse domestic and international
economic developments. The NSE
admitted four new companies, two
state government bonds, one corporate
bond, two FGN Bonds and one
Exchange Traded Fund (ETF) on the
floor in 2016. In addition, there were
thirteen supplementary listings on the
NSE owing to bonus issues, special
placements and convertible preference
shares. The Exchange delisted nine
companies, eight of which were on
account of failure to comply with post-
listing requirements, and the last one
on the ground that the company had
ceased to exist.
The Sierra Leone Stock Exchange
recovered from its dormant state
during the review period, as it received
a boost with two more companies; the
Commerce and Mortgage Bank (a
subsidiary of NASSIT) and the First
Discount House Limited listed on the
Stock Exchange in addition to Rokel
Commercial Bank, which had been the
only listed company since the
inception of the Market. The Securities
and Exchange Bill was also drafted,
awaiting the signature of the Minister
of Finance and Economic
Development for its enactment into
law. This will pave the way for the
establishment of the Securities and
Exchange Commission.
The NSE partnered with NASDAQ to
acquire its SMARTS Market
Surveillance platform to power its
compliance program. The technology
was to provide the Exchange with the
surveillance expertise needed to grow
and expand the market and equip it
with the surveillance tools necessary to
monitor market manipulation,
58
including spoofing and layering. The
NSE also used NASDAQ‟s X-Stream
trading platform as its trading engine.
In furtherance of its commitment to
provide quoted companies global
visibility and access to deep capital
pools, the Exchange, in partnership
with the London Stock Exchange
Group (LSEG), held its 2nd
NSE/LSEG Dual Listings Conference.
The Conference theme „Leveraging
Cross-Border Capital Markets for
Sustainable Growth‟ was primarily
targeted at companies keen to explore
a London/Lagos dual listing. The
conference was sequel to the
agreement between the NSE and LSEG
to strengthen cooperation and jointly
promote mutual development between
the two exchanges.
The Sierra Leone Stock Exchange
recovered from its dormant state
during the review period, as it received
a boost with two more companies; the
Commerce and Mortgage Bank (a
subsidiary of NASSIT) and the First
Discount House Limited listed on the
Stock Exchange in addition to Rokel
Commercial Bank, which had been the
only listed company since the
inception of the Market. The Securities
and Exchange Bill was also drafted,
awaiting the signature of the Minister
of Finance and Economic
Development for its enactment into
law. This will pave the way for the
establishment of the Securities and
Exchange Commission.
The NSE and GSE continued to play
active role in capital market integration
in West Africa by its active
membership of WACMIC, and its
support in the launching of the
WASRA.
4.4.6 Regional Currency an improvement from 15.2 percent in
Convertibility 2015 to 15.4 percent in 2016. The
The Zone has witnessed the activities contributors to this improvement in the
of some banks that are currently state of financial intermediation in the
quoting and trading in the WAMZ Zone are Ghana, Liberia and Nigeria
national currencies. These banks while The Gambia, Guinea and Sierra
included, Stanbic, Zenith, Bank of Leone recorded slight reduction in
Africa, Access bank amongst others. financial intermediation during the
However, there is the need to provide period (see Figure 4.2). Generally, the
the necessary regulations, formal and state of financial depth and
common platform for these activities to intermediation indicators in Zone
mitigate abuse and exploitation of the requires managers of the various
process. The current effort by WAMI economies to continue the drive to
in this direction is therefore necessary achieve significant progress in
and should be encouraged. financial inclusion and economic
empowerment.
4.4.7 Financial Depth and
Intermediation
During the review period, the Zone
recorded a slight decline in financial
depth which is measured by the ratio of
broad money to GDP. The indicator
fell marginally to 31.4 percent in 2016
from 31.5 percent in 2015 due to the
decrease in financial depth measure in
Ghana, Guinea and Liberia. The
Gambia and Nigeria, however,
recorded an improvement during the
period (see Figure 4.1). On the other
hand, financial intermediation for the
WAMZ as measured by the ratio of
private sector credit to GDP recorded

59
60
 CHAPTER FIVE
ACTIVITIES OF THE WEST AFRICAN MONETARY
INSTITUTE 2016
5.0 Introduction
T he West African Monetary
Institute‟s (WAMI) activities
towards economic integration in
the WAMZ in line with the decision of
the ECOWAS Authority on the
adoption of a Single Track Approach
to monetary union in West Africa
continued during the year under
review. These activities, including
multilateral surveillance of
macroeconomic developments,
financial sector and trade integration
issues, payments system development
and the building of other relevant
frameworks are essential pillars for the
attainment of a sustainable monetary
union and economic development in
the sub region.
5.1 Management of WAMI
During the year under review, WAMI
operated a new structure under a broad
restructuring arrangement approved by
the Committee of Governors of the
WAMZ. In line with the new structure,
there were four departments, two units
and the Office of the Director-General.
The Director-General and Directors of
the four departments and two units
who constituted the Management
Board, held regular meetings on the
work programme and other
administrative issues. As at 31st
December, 2016, the Institute‟s staff
compliment was 45, comprising 36
professionals and 9 support staff.
Members of staff continued to benefit
from the provision of health insurance,
group life and personal accident
61
insurance as well as other recreational
facilities.
5.2 Implementation of the Work
Program of the Institute
In line with the decision of the
ECOWAS Authority on the adoption
of a Single Track Approach to
monetary union, WAMI undertook the
following activities:
Multilateral Surveillance
In collaboration with the ECOWAS
Commission and the West African
Monetary Agency, WAMI carried out
two multilateral surveillance missions
in April and September 2016. The
missions to the member countries of
the WAMZ assessed their
macroeconomic performance in
compliance with the agreed
convergence criteria and structural
benchmarks. The mission teams also
held discussions with relevant
authorities in the member countries on
important policy issues and reviewed
progress made towards compliance
with the convergence criteria.
Subsequently, an updated report on
Macroeconomic Developments and
Convergence Reports were prepared
by WAMI, reflecting the findings of
the teams.
Payments System Development
Project
The implementation of the West
African Monetary Zone (WAMZ)
Payments System Development Project
in The Gambia, Guinea, Liberia and
Sierra Leone was completed in 2016.
The preparation of a Project
Completion Report (PCR) which
commenced in March 2015 was
completed in March 2016 and the
Report has been submitted to the
AfDB. The report indicated that proper
maintenance and systems upgrade
mechanisms should be put in place in
order to ensure sustainability.
Financial Integration Issues
The College of Supervisors of the
West African Monetary Zone
(CSWAMZ) continued to provide the
main supervisory platform for
maintaining and enhancing financial
stability in the Zone. The College held
all the four statutory meetings
scheduled for 2016. The meetings
provided an avenue for discussions on
issues affecting the banking industry in
the Zone, including the necessity to:
build effective partnership and
collaboration in cross-border banking
supervision; develop a banking crisis
resolution framework; and reinforce
measures for combating money
laundering and the financing of
terrorism. Discussions during the
meetings also centered on member
countries experience with IMF
Financial Sector Assessment
Programmes; framework for the
supervision and regulation of Islamic
banking, framework for supervision
and regulation of microfinance
institutions including current
challenges facing the sector; and
capacity building for bank examiners,
among others.
The West African Capital Market
Integration Council (WACMIC)
continued to harmonize the rules and
regulations for the issuance and trading
of financial securities across the
Economic Community of West African
States (ECOWAS). The Technical
62
Committee and Council held a meeting
each in March and October 2016,
respectively. The Report of the
Technical Committee which was
adopted by the Council covered the
following: Translation of approved and
finalized Phases 1 and 2 documents
into French and Portuguese;
Certification of Brokers; Proposed Tax
Framework for WACMIC; Live data
feeds/ consolidated live data feeds;
Plan for implementing International
Conference, and Budget for Funding
WACMIC Secretariat and Activities.
The maiden meeting of the Experts
Committee on the Scheme on Quoting
and Trading in West African Monetary
Zone WAMZ national currencies was
held at the African Regent Hotel,
Accra, Ghana, in November, 2016. The
main objective was to provide
guidance for the operationalization of
the new Scheme for Quoting and
Trading in WAMZ national currencies
in order to ensure its successful
implementation.
Statistical Harmonization
In the area of statistical harmonization,
the major challenge continued to be
that, while some member states
produced both quarterly and annual
GDP figures, others were producing
only annual GDP. Sensitization was
largely dormant in all the WAMZ
countries. However, plans were
underway to migrate the remaining
countries into producing quarterly
GDP data. On policy harmonisation,
WAMZ Member States continued to
implement the ECOWAS trade-related
protocols. The ECOWAS Common
External Tariff (CET) entered into
force on January 1, 2015, and by the
end of 2016, Nigeria and Ghana were
the only WAMZ member countries to
have commenced implementation. The
rest of the WAMZ Member States
were yet to start due to technical or
legislative reasons.
Trade and Regional Integration
The Ministry of Commerce and
Industry of the Republic of Liberia
successfully hosted the Eighth Edition
of the West African Monetary Zone
(WAMZ) Trade Ministers‟ Forum in
November 2016. The theme of the
Forum was “Opportunities for
Development through Regional Trade
Integration”. The key outcomes of the
Forum included the adoption of the
WAMZ Trade Integration Index and
for it to be updated and published
annually, approval for WAMI to seek
support from development partners to
carry out informal cross border survey
in the WAMZ, and for WAMI to
collaborate with Afreximbank to carry
out joint programmes and to sensitize
the Member States of the WAMZ on
the activities of Afreximbank and how
they can access its products and
services.
The 14th Meeting of the ECOWAS-
WAMI Joint Task Force (JTF) on
Trade-related Issues was held at the
ECOWAS Commission in Abuja,
Nigeria, from February 16-19, 2016.
The review of the Report of the 13th
Meeting of the JTF, update on the
construction of the WAMZ Trade
Integration Index, outcome of the
Trade Ministers‟ Forum in Banjul in
2015 and implementation of the
ECOWAS trade-related protocols and
conventions and working visit to the
Nigeria Customs Services, the National
Approval Committee in the Ministry of
Foreign Affairs and the ECOWAS
Parliament, formed the basis of the
deliberations of the meeting. Key
outcomes of the meeting included the
63
recommendations for ECOWAS
Commission to involve WAMI in the
ECOWAS Common Trade Policy
Experts Working Group by virtue of
the Institute‟s technical support in the
formulation of the national trade
policies of The Gambia, Guinea and
Sierra Leone, and WAMI should
encourage the WAMZ Member States
that are yet to implement the CET
(Liberia, The Gambia, Guinea and
Sierra Leone) to do so by end of March
2016, in compliance with the directive
of the ECOWAS Heads of State and
Government.
The 15th Meeting of the ECOWAS-
WAMI Joint Task Force (JTF) on
Trade-related Issues was held at the
West African Monetary Institute in
Accra, Ghana, from November 29-
December 1, 2016. The review of the
Report of the 14th Meeting of the JTF,
update on the construction of WAMZ
trade integration index, outcome of the
Trade Ministers Forum in Liberia 2016
and implementation of the ECOWAS
trade and trade-related protocols and
conventions and working visit to an
ETLS accredited company in Ghana,
formed the basis of the deliberations of
the meeting. A major outcome of the
meeting was for ECOWAS
Commission to indicate by the end of
the first quarter of 2017, activities
identified under the WAMZ Trade and
Transport Facilitation Assessment
(TTFA) report it is willing to cede to
WAMI for implementation in the
WAMZ member countries.
Legal Issues
The Legal Unit continued its role as
legal advisor to the Institute and to the
WAMZ project covering all aspects of
the work programme with emphasis on
the Payments System, the ACBF
Projects and the College of Supervisors
of the WAMZ. The 17th Meeting of
the Legal and Institutional Issues
Committee (LIIC) of the WAMZ was
held in Accra, Ghana from October 11-
14, 2016, to review the draft Model
Banking Act (MBA). Comments and
suggested amendments were made and
WAMI was now finalizing the draft
MBA for consideration at the next
LIIC meeting to be held in the first
quarter of 2017.
Study on the Establishment of WAMZ
Commission
In line with directive by Council, a
study on the proposed WAMZ
Commission and cost estimates were
presented. The study was informed by
an anticipated work programme
anchored on key pillars of trade
integration and community
development, financial integration and
market development, infrastructure and
energy and economic affairs and
international cooperation.
The draft estimates were prepared
based on several assumptions. Further
to these assumptions, two scenarios
were explored: scenario one envisaged
a full complement of a Commission
including positions for Commissioners,
while scenario two envisaged a
Commission without positions for
Commissioners but Heads of
Directorates.
African Capacity Building Foundation
(ACBF) Project
Project implementation in 2016 started
relatively slow due to delay in
receiving replenishment from ACBF.
In order to avoid decline in project
implementation rate, the Institute
bridged some of the gaps with
proactive pre-financing, thus meeting
64
its commitments and obligations to the
stakeholders. During the review
period, two training programmes were
funded by the project. The first one
was “Techniques of Report Writing”,
which sought to improve report writing
and communication skills of WAMI
staff. The second training programme
was a regional workshop on
“Assessing the Basel Core Principles
(BCP) for effective Banking
Supervision for WAMI staff-members
and banking supervisors in the
WAMZ”, with the aim of
strengthening the capacity of bank
examiners to undertake self-
assessments as well as peer-reviews on
compliance with the BCPs. The project
also funded other activities including
the 7th Annual Conference on
Regional Integration in Africa, the 21st
Meeting of the College of Supervisors
of the West African Monetary Zone
(CSWAMZ), and Construction of
Trade Integration Index for the WAMZ
5.3 WAMZ Statutory Meetings
Accra Meetings
Technical Committee: The 38th
Meeting of the Technical Committee
of the West African Monetary Zone
(WAMZ) was held at Kempinski
Hotel, Gold Coast City, Accra, Ghana
on 11th and 12th January 2016, to
deliberate on the status of
implementation of the West African
Monetary Zone Work Programme. The
technical documents prepared by the
West African Monetary Institute
(WAMI) formed the basis for the
deliberations
Committee of Governors: The 32nd
Meeting of the Committee of
Governors of the West African
Monetary Zone (WAMZ) was held on
 14th January 2016, to deliberate on the
status of implementation of the
WAMZ Work Programme. The Report
of the 38th Meeting of the Technical
Committee of the WAMZ formed the
basis of the deliberations.
The Committee of Governors endorsed
the report of the Technical Committee
and made some recommendations for
the consideration of the Convergence
Council.
Convergence Council: The 35th
Meeting of the Convergence Council
of Ministers and Governors of Central
Banks of the West African Monetary
Zone (WAMZ) was held at Movenpick
Hotel, Accra, Ghana on 15th January
2016, to deliberate on the status of
implementation of the West African
Monetary Zone Work Programme. The
Report of the 32nd meeting of the
Committee of Governors formed the
basis of the deliberations and
decisions.
After extensive deliberation on the
issues, Council took the following
decisions:
i. Adopted the Report on
Macroeconomic developments and
convergence as at end-June 2015
and urge Member States to:
 redouble their efforts to ensure
the attainment of the minimum
level of convergence required
for the establishment of
ECOWAS monetary union by
2020;
 address the infrastructure gaps
by providing adequate funding
for electricity, energy, road and
railways. In this regard,
Member States should explore
sustainable funding options
65
such as the issuance of
infrastructure bonds and PPP
arrangements;
 further strengthen fiscal
consolidation by addressing all
tax administration
inefficiencies, broadening
revenue base, rationalizing
expenditure and restructuring
maturity profiles of debts; and
 provide monthly data on key
indicators to enable WAMI
regularly update the analysis of
macroeconomic developments
in the Zone;
 urged Member States that have
not yet commenced
implementing the CET to do so
as soon as possible;
 endorsed the adoption of end-
period inflation for the
assessment of macroeconomic
convergence in view of its
appropriateness in the
formulation of monetary
policy;
ii. urged Member States to
address the challenges of
restrictions on access to foreign
exchange for stock market
transactions and lack of
settlement mechanism in the
region to facilitate the capital
market integration process;
iii. noted the progress made in the
implementation of the WAMZ
payments system project and
the extension of the closing
date of the project to 31st
December, 2016;
iv. noted the Report on the 7th
Forum of the WAMZ Trade
Ministers and urge Member
States to implement the
 recommendations of the Forum
to promote deeper trade
integration in the Zone and the
wider ECOWAS region;
v. directed WAMI to speed up the
finalisation of the study on the
transformation of WAMI into a
Commission and to circulate
the Report in advance to
Member States for
consideration at the next
statutory meetings;
vi. approved the reappointment of
the External Auditors,
PricewaterhouseCoopers for
the audit of the 2015 financial
statements of WAMI;
vii. approved the WAMI Work
Programme and Budget for
2016 in the sum of
US$6,911,301.59 of which the
total contributions of Member
States amount to
US$3,490,873.41 as against
US$3,725,995.45 in 2015, a
decrease of 6.31 percent;
viii. directed WAMI to finalise the
paper on the development of
national and regional banking
crisis resolution frameworks for
consideration and adoption by
Member States at the next
statutory meetings and
incorporate provisions on
regional crisis resolution in the
draft model Banking Act;
ix. directed WAMI to refer the
issue of compliance with the
United States Foreign Account
Tax Compliant Act (FATCA)
to ECOWAS Commission for
66
an adoption of a regional
approach to the matter; and
x. notwithstanding xi above,
Member States should
individually/bilaterally pursue
compliance with FATCA while
a regional approach was being
considered.
Conakry Meetings
Technical Committee: The 39th
Meeting of the Technical Committee
of the West African Monetary Zone
(WAMZ) was held at Riviera Royal
Hotel, Conakry, Guinea on 1st and 2nd
August 2016, to deliberate on the
status of implementation of the
WAMZ Work Programme. The
technical documents prepared by the
West African Monetary Institute
(WAMI) formed the basis for the
deliberations.
Committee of Governors: The 33rd
Meeting of the Committee of
Governors of the West African
Monetary Zone (WAMZ) was held in
Conakry, Guinea on 4th August, 2016,
to deliberate on the status of
implementation of the WAMZ Work
Programme. The Report of the 39th
Meeting of the Technical Committee
of the WAMZ formed the basis of the
deliberations. The Committee of
Governors endorsed the report of the
Technical Committee and made some
recommendations for the consideration
of the Convergence Council.
Convergence Council: The 36th
Meeting of the Convergence Council
of Ministers and Governors of Central
Banks of the West African Monetary
Zone (WAMZ) was held in Conakry,
Guinea on 5th August, 2016, to
deliberate on the status of impede the effective
implementation of the WAMZ Work implementation of the ISRT.
Programme. The Report of the 33rd
Meeting of the Committee of iii. urged the beneficiary countries
Governors of the WAMZ formed the to fund the shortfall on the
basis of the deliberations. After WAMZ Payments System
deliberations, the Convergence Project arising from the
Council decided as follows: exchange rate losses due to
appreciation of the US dollar
i. adopted the Report on against the West African Unit
macroeconomic developments of Account (WAUA);
and convergence in the WAMZ
as at end-December 2015 and iv. encouraged WAMI to seek
urged Member States to: funding to facilitate the inter-
 minimize the impact of linkage of the Payments
international commodity price System among the Member
shocks, by diversifying their States;
economies through structural
transformation; v. noted the report on the progress
 intensify the process of made in capital market
addressing the infrastructure integration in West Africa and
gap. In this regard, the urged Member States to
authorities could leverage on redouble efforts to address the
available pension funds and inhibiting constraints to deepen
explore the possibility of the process in the WAMZ;
issuing regional bonds for
infrastructural development  noted the progress report on the
where possible; implementation of the ACBF
 contain the escalating budget Capacity Building Project and:
deficits, strengthen fiscal
consolidation and intensify on-  urged WAMI to engage ACBF
going reforms in revenue to consider the possibility of a
mobilization; second phase of the Capacity
 improve the business Building Project in view of the
environment by speeding up 31st December 2016 terminal
the on-going financial and date of the first phase;
structural reforms across
Member States, so as to vi. tasked WAMI to explore
reinforce foreign investor additional sources of funding
confidence within the WAMZ; for capacity building of WAMI
and staff and officials of Member
States;
ii. strengthen sensitization on the
ETLS in order to increase vii. approved the report of the audit
participation in the scheme and of the financial statements of
eliminate constraints that the West African Monetary

67
 Institute for the year ended 31st
December 2015;
viii. approved the re-appointment of
PricewaterhouseCoopers as
External Auditors of WAMI for
their fifth and final year audit
(for the financial year 2016) at
a professional fee of
US$15,000.00 (Fifteen
thousand U.S. Dollars only)
exclusive of VAT and other
incidental expenses at a
maximum of US$750.00 (seven
hundred and fifty US Dollars
only);
ix. directed WAMI to share the
draft study on the establishment
of a WAMZ Commission with
relevant stakeholders in each
Member State to ensure wider
consultation and consensus
building and also incorporate
the comments of the Technical
Committee to further enrich the
document;
x. directed WAMI to prepare an
implementation framework
detailing the cost implications
and strategic plan for the
actualization of the WAMZ
Commission and submit the
report at the next WAMZ
Statutory Meetings.
xi. directed WAMI to examine the
Memorandum of
Understanding between the
European Union (EU),
UEMOA and the ECOWAS
Commissions on the Regional
Indicative Programme (RIP)
and provide implications for
the WAMZ Programme.
68
xii. directed WAMI to carry out a
comprehensive study on
assessing the feasibility of
using pension funds of the
Member States of the WAMZ
for infrastructure financing and
submit the report at the next
WAMZ statutory meeting; and
xiii. directed WAMI to collaborate
with the Member States to
assess the practicability of the
Scheme on quoting and trading
in WAMZ national currencies
bearing in mind the experiences
of earlier schemes and to
facilitate the finalisation of the
framework.
5.4 WAMI Publications in 2016
During the year under review, the
Institute published the following:
 Financial Stability Report
(December 2015 edition).
 West African Journal of
Monetary and Economic
Integration: (June and
December 2015 editions)
 2015 Annual Report
 WAMI Occasional Paper
Series: (June 2016 editions)
o “Prudential Indicators In The
WAMZ: A Gap Analysis”
o “Financial Integration in the
West African Monetary Zone:
A Stocktake of The Journey
So Far”
o “The Developmental Roles of
Central Banks in The West
African Monetary Zone”
 Obstacles to Trade in the West
African Monetary Zone
(WAMZ): Promoting
Integration in the WAMZ
(October 2016) and;
  West African Monetary Zone
(WAMZ) Trade Integration
Report (December 2016)
5.5 Financial Accounts of WAMI
Highlights of financial performance of
the Institute in 2016 as reported in the
audited financial statements are
presented below:
Income and Expenditure
The total income of the Institute for the
2016 financial year was US$3,644,133.
This comprised US$3,490,873 from
Membership Subscription, US$43,935
from Finance Income and US$109,325
from Other Income. The total
expenditure for the year was
US$4,322,973 resulting in a net
operating deficit of US$678,840. The
deficit of US$678,840 was caused by a
shortfall in revenue recognition in the
2016 financial statements, in
accordance with International
Financial Reporting Standards (IFRS).
A savings of US$1,383,801 in 2015,
which was used to offset contributions
in 2016, led to a lower contribution of
US$3,490,873 by Member States
instead of US$4,874,674 if no savings
had been made.
69
Interest income from the investment of
the West African Central Bank Capital
(WACB) as well as the Stabilization
and Cooperation Fund (SCF)
amounted to US$63,622. This income
has been apportioned to the WACB
Capital and the SCF as agreed by
Member States.
Assets and Liabilities
The total current asset of WAMI at
December 2016 was US$64,452,422,
comprising largely of Investment
Securities of the West African Central
Bank Capital (WACB) as well as the
Stabilization and Cooperation Fund
(SCF). Non-current Assets, made up of
property & equipment and intangible
assets amounted to US$251,065 which
when added to current assets gave a
total asset figure of US$64,703,487.
Current liabilities of US$383,244 when
added to accumulated fund of
US$1,733,459 and the West African
Central Bank Capital (WACB) of
US$28,909,842 as well as the
Stabilization and Cooperation Fund
(SCF) of US$33,676,942 results in
total liabilities and Members fund of
US$64,703,487 at 31st December
2016.
 CHAPTER SIX
CONCLUSION
G lobal growth remained
sluggish in 2016. International
price developments were
generally mixed, as the advanced
economies and Sub-Saharan Africa
recorded higher inflation, while
inflation in most of the emerging
market and developing economies
declined. Foreign exchange
developments indicated that most of
the major currencies weakened against
the US dollar. Commodity prices in
the world market commenced an
upward trend in the second half of the
year, on the back of increase in
demand.
Growth in the WAMZ countries
slowed in the review period, reflecting
the subdued global growth. Real GDP
growth declined in four of the member
states, but increased in the other two.
Inflation increased zone-wide and
across five of the member states, with
most of the countries recording double-
digit inflation rates.
Member States‟ performance on both
the primary and secondary
convergence criteria, deteriorated in
2016, relative to 2015. On the primary
criteria, The Gambia and Liberia
maintained their performance, the
performance of Ghana, Nigeria, and
Sierra Leone worsened, but that of
Guinea improved. The Gambia, Ghana
and Sierra Leone satisfied one of the
primary criteria each, while Guinea,
Liberia and Nigeria met three each.
Regarding the secondary criteria, The
Gambia and Ghana showed
70
improvement in performance, the
performance of Guinea and Liberia
declined, and that of Nigeria and Sierra
Leone was maintained. The Gambia
and Ghana satisfied the criterion on
exchange rate variation, while Guinea,
Liberia, Nigeria and Sierra Leone
satisfied the criterion on public debt to
GDP ratio.
Implementation of the Payments
System Development Project which
was funded by the African
Development Bank was successfully
completed in The Gambia Guinea,
Liberia and Sierra Leone in the review
period. WAMZ members continued to
make considerable progress on the
development of their respective
payments system. Remarkable
progress was also recorded in the areas
of institutional development and policy
harmonization.
Nigeria and Ghana continued to make
significant strides in the
implementation of the ECOWAS CET
trade protocols and convention, and
implementation of the ETLS scheme
showed some improvements across the
Zone. The WAMZ banking industry
was relatively stable in 2016, despite
the adverse macroeconomic condition.
In collaboration with the College of
Supervisors, member states in the
WAMZ continued to strengthen and
implement banking supervision
processes, in line with international
best practice. Reforms and policies for
the regulation and deepening of non-
bank financial institutions, as well as
capital markets and pension funds were
also initiated during the review period.
Table A1: Summary of World Output Growth (Annual Percentage Change)
2009 2010 2011 2012 2013 2014 2015 2016
World -0.1 5.4 4.2 3.5 3.4 3.5 3.4 3.1

Advanced Economies -3.4 3.1 1.7 1.2 1.3 2.0 2.1 1.7
United States -2.8 2.5 1.6 2.2 1.7 2.4 2.6 1.6
Euro Area -4.5 2.1 1.6 -0.9 -0.3 1.1 2.0 1.7
Japan -5.5 4.7 -0.5 1.7 2.0 0.3 1.2 1.0
Other Advanced economies -2.0 4.5 3.0 1.9 2.3 2.9 1.9 2.0

Emerging Market and Developing Economies 3.0 7.4 6.3 5.3 5.1 4.7 4.2 4.1
Emerging and Developing Europe -3.0 4.7 5.4 2.4 4.9 3.9 4.7 3.0
Commonwealth of Independent States -6.4 4.6 4.8 3.5 2.1 1.1 -2.2 0.3
Emerging and Developing Asia 7.5 9.6 7.8 7.0 6.9 6.8 6.7 6.4
Latin America & the Caribbean -1.2 6.1 4.9 3.0 2.9 1.2 0.1 -1.0
Middle East & North Africa 1.5 5.2 4.6 5.1 2.1 2.7 2.6 3.8
Sub-Saharan Africa 4.0 6.6 5.0 4.3 5.3 5.1 3.4 1.4
Source: WEO, April 2017

Table A2: Summary of World Price Developments (Annual Percentage Change)

2009 2010 2011 2012 2013 2014 2015 2016
Advanced Economies 0.2 1.5 2.7 2.0 1.4 1.4 0.3 0.8
United States -0.3 1.6 3.1 2.1 1.5 1.6 0.1 1.3
Euro Area 0.3 1.6 2.7 2.5 1.3 0.4 0.0 0.2
Japan -1.3 -0.7 -0.3 0.0 0.3 2.8 0.8 -0.1
Major advanced Economies 1.4 2.4 3.3 2.1 1.3 1.5 0.3 0.8
Emerging Market and Developing Economies 5.0 5.6 7.1 5.8 5.5 4.7 4.7 4.4
Central and Eastern Europe 4.8 5.6 5.4 5.9 4.5 4.1 3.2 3.2
Commonwealth of Independent States 11.1 7.2 9.7 6.2 6.5 8.1 15.5 8.3
Developing Asia 2.8 5.1 6.5 4.6 4.6 3.5 2.7 2.9
Latin america and the Caribbean 4.6 4.2 5.2 4.6 4.6 4.9 5.5 5.6
Middle East and North Africa 6.1 6.2 8.7 9.7 9.3 6.6 5.9 5.4
Sub-Saharan Africa 9.8 8.2 9.5 9.3 6.6 6.3 7.0 11.4
Source: WEO, April 2017

Table A3: Components of Real GDP in Some Selected Economies (Annual Percentage Change)
2009 2010 2011 2012 2013 2014 2015 2016
Private Consumer Expenditure
Advanced Economies -1.2 1.9 1.4 0.9 1.2 1.8 2.3 2.2
United States -1.6 1.9 2.3 1.5 1.7 2.9 3.2 2.7
Euro Area -1.1 0.8 0.0 -1.2 -0.6 0.8 1.8 2.0
Japan -0.7 2.8 0.3 2.3 1.7 -0.9 -0.4 0.4
Other Advanced Economies 0.0 3.7 3.0 2.1 2.3 2.3 2.7 2.2
Public Consumption
Advanced Economies 3.0 0.9 -0.6 0.2 -0.3 0.5 1.7 1.6
United States 3.7 0.1 -2.7 -0.9 -2.4 -0.7 1.6 0.8
Euro Area 2.4 0.8 -0.1 -0.3 0.3 0.6 1.3 1.7
Japan 2.3 1.9 1.9 1.7 1.5 0.5 1.6 1.5
Other Advanced Economies 3.4 2.8 1.5 2.0 2.3 2.4 2.5 3.1
Gross Fixed Capital Formation
Advanced Economies -11.1 1.9 2.9 2.3 1.5 3.0 2.5 1.5
United States -13.1 1.1 3.7 6.3 3.1 4.2 3.7 0.7
Euro Area -11.2 -0.3 1.6 -3.5 -2.5 1.5 3.2 2.6
Japan -10.6 -0.2 1.7 3.5 4.9 2.9 0.0 1.0
Other Advanced Economies -5.2 6.0 4.0 2.9 2.6 2.1 1.7 1.9
Foreign Balance
Advanced Economies 0.3 0.1 0.3 0.4 0.3 0.0 -0.2 -0.1
United States 1.2 -0.5 0.0 0.1 0.3 -0.2 -0.7 -0.1
Euro Area -0.6 0.6 0.9 1.4 0.4 0.0 0.2 -0.1
Japan -2.0 2.0 -0.9 -0.8 -0.4 0.0 0.5 0.5
Other Advanced Economies 1.5 0.1 0.5 0.5 0.9 0.5 -0.4 0.1
Source: WEO, April 2017

71
Table A4: General Government Fiscal Balances & Debts in Some Selected Economies (Percent of GDP)
Ne t Le nding (+)/ B o rro wing (-) 2009 2010 2011 2012 2013 2014 2015 2016

United States -14.7 -10.9 -9.6 -7.9 -4.4 -4.0 -3.5 -4.4
Euro Area -6.4 -6.2 -4.2 -3.7 -3.0 -2.6 -2.1 -1.7
Japan -10.4 -9.3 -9.1 -8.3 -7.6 -5.4 -3.5 -4.2
United Kingdom -11.3 -9.6 -7.5 -7.7 -5.6 -5.7 -4.4 -3.1
Canada -4.5 -4.7 -3.3 -2.5 -1.5 0.0 -1.3 -1.9
Source: WEO, April 2017
Table A5: Current Account Balances in Selected Economies (in % of GDP)
2009 2010 2011 2012 2013 2014 2015 2016
Advanced Economies -0.2 0.0 -0.1 0.0 0.5 0.5 0.7 0.8
United States -2.7 -3.0 -3.0 -2.8 -2.2 -2.3 -2.6 -2.6
Euro Area 0.1 0.3 0.2 1.3 2.2 2.4 3.0 3.4
Japan 2.9 4.0 2.2 1.0 0.9 0.9 3.1 3.9
Other Advanced Economies 4.3 5.0 4.1 4.3 5.2 5.4 5.9 5.9
Emerging Market and Developing Economies 1.3 1.2 1.4 1.2 0.6 0.5 -0.2 -0.3
Central and Eastern Europe -3.5 -5.1 -6.5 -4.6 -3.6 -2.9 -2 -1.9
Commonwealth of Independent States 2.5 3.3 4.1 2.3 0.6 2.1 2.8 -0.2
Developing Asia 3.4 2.4 0.8 0.9 0.7 1.5 2.1 1.3
Latin America and the Caribbean -0.8 -1.9 -2.0 -2.4 -2.8 -3.2 -3.5 -2.1
Middle East and North Africa 1.8 6.2 12.7 12.4 10.1 5.3 -4.1 -3.4
Sub-Saharan Africa -2.8 -0.9 -0.8 -1.8 -2.4 -3.9 -6.0 -4.0
Source: WEO, April 2017
Table A6: Volume of World Trade (Annual Percent Change)
2009 2010 2011 2012 2013 2014 2015 2016
World Trade in Goods and Services (Volume) -10.5 12.4 7.1 2.7 3.7 3.7 2.7 2.2
Exports
Advanced Economies -11.2 12.0 6.0 2.3 3.2 3.9 3.7 2.1
Emerging Market and Developing Economies -8.2 13.3 8.5 3.5 4.9 2.8 1.4 2.5
Imports
Advanced Economies -11.7 11.4 5.1 1.2 2.4 3.9 4.4 2.4
Emerging Market and Developing Economies -8.5 14.0 11.5 5.2 5.3 4.0 -0.8 1.9
Terms of Trade
Advanced Economies 2.6 -0.9 -1.6 -0.6 0.8 0.3 1.8 0.9
Emerging Market and Developing Economies -4.7 2.1 4.3 0.6 -0.5 -0.6 -4.2 -1.2
World Exports (Billions of US Dollars)
Goods and Services 15725 18696 22254 22486 23215 23593 20928 20522
Goods 12226 14895 17910 18039 18476 18569 16165 15713
Source: WEO, April 2017

Ta ble A 7 : M o nthly C rude Oil P ric e s *, 2 0 10 - 2 0 16 (US $ P e r B a rre l)

M o nth 2 0 13 2 0 14 2 0 15 2 0 16
J a nua ry 105.04 102.25 47.45 29.92
F e brua ry 107.66 104.82 54.93 31.05
M a rc h 102.61 104.04 52.83 37.34
A pril 98.85 104.94 57.42 40.75
May 99.35 105.73 62.5 45.98
J une 99.74 108.37 61.3 47.69
J uly 105.21 105.22 54.43 44.22
A ug us t 108.06 100.05 45.72 44.84
S e pte m be r 108.78 95.89 46.29 45.06
Oc to be r 105.46 86.13 46.96 49.29
N o v e m be r 102.58 76.96 43.13 45.28
D e c e m be r 105.49 60.55 36.56 52.61

Source: http: //www.indexmundi .com/commodities/?commodity=crude-oil&months=60

* Description: Crude oil (petroleum), simple average of three spot prices: Dated Brent,
West Texas Intermediate and the Dubai Fateh

72
Table 8: The Gambia: Output and Prices (in millions of dalasis)
2012 2013 2014 2015 2016

Domestic Output
GDP at Constant Prices 1173.6 22957.1 23158.9 24163.3 24687.8
Real GDP Growth 6.1 4.8 0.9 4.3 2.2
Sectoral Growth
Agric 4821.0 4736.4 4401.1 4568.4 4590.1
Crops 2438.9 2273.1 1818.5 1900.3 1835.7
Livestock 1833.6 1893.7 1980.7 2042.0 2107.0
Forestry 119.2 123.3 127.0 130.8 134.7
Fishing 429.2 446.4 474.9 495.4 512.7

Industry 3027.6 3162.5 3247.0 3514.7 3404.8

Mining and quarrying 669.1 718.6 645.5 603.5 541.3
Manufacturing 1161.9 1198.8 1232.7 1251.2 1263.7
Electricity, gas and water supply 237.3 242.5 260.3 284.4 305.0
Construction 959.4 1002.6 1108.5 1375.6 1294.8

Services 12821.0 13856.3 14683.3 15226.7 16004.5

wholesale and retail trade 5087.5 5201.3 5647.1 5804.5 5899.0
Hotels and restaurants 538.4 586.9 533.8 461.0 552.3
Transportation, storage and communication 3139.6 3723.1 3729.0 3985.9 4303.9
of which Communication 2372.0 2914.7 2993.4 3124.5 3413.9
Finance and insurance 2185.0 2317.6 2601.2 2726.6 2862.2
Real estate, renting and business activities 741.6 793.5 818.1 843.4 869.6
Public administration 436.9 467.5 514.8 528.5 543.0
Education 300.7 341.8 388.8 405.1 455.0
Health and social work 288.1 314.3 336.6 354.4 398.4
Other community, social and personal services 103.3 110.5 113.9 117.4 121.1
FISIM -809.7 -945.4 -1339.5 -1407.8 -1621.7

Sectorial Growth Rates

Agriculture 6.0 -1.8 -7.1 3.8 0.5
Industrial 6.4 4.5 2.7 8.2 -3.1
Services 5.8 8.1 6.0 3.7 5.1

Sector Share of GDP

Agriculture 22.0 23.0 20.0 19.7 21.0
Industrial 14.0 15.0 15.0 18.9 14.0
Services 58.0 62.0 65.0 61.4 66.0

GDP at Current Market Prices 29435.0 32497.7 35436.4 39927.3 43262.9

Prices
Annual Average Inflation Rate 3.9 5.7 5.2 6.2 6.7
End Period Inflation Rate 4.9 5.6 6.9 7.2 7.9
Source: Gambian Authorities

73
Table 9: The Gambia: Government Fiscal Operations (in millions of dalasis)
2012 2013 2014 2015 2016

Total revenue and grants 7335.0 5951.8 7793.0 8241.6 8354.3

Total revenue (excl. grants ) 4723.8 5226.6 6508.2 7519.3 7646.7
Tax revenue 4163.4 4549.1 5602.9 6694.6 7014.4
Direct Tax 1497.5 1359.5 1712.3 1695.5 1811.8
Pers onal 758.0 573.7 616.8 730.3 758.3
Corporate tax 653.2 685.4 847.8 857.0 944.8
Capital gains 43.5 50.4 198.4 63.7 44.5
Payroll tax 42.6 48.8 49.1 43.9 42.9
Others 0.2 1.2 0.1 0.6 21.3
Indirect Tax 2665.9 3189.6 3890.6 4999.1 5202.6
Taxes on domes tic goods & s ervices 829.7 1067.9 1268.0 1544.4 1700.0
Sales tax 594.5 26.2 19.3 1.4
Stamp Duties 20.9 20.5 41.3 96.7 33.34
Excis e Duties 214.2 375.9 483.7 627.1 732.92
VAT 0.0 645.3 723.7 819.2 893.78
Taxes on international trade & trans actions 1836.3 2121.6 2622.6 3454.7 3502.6
Import duty 855.1 1283.6 1541.9 2109.0 2125.9
oil 333.0 351.9 421.3 964.6 823.8
non-oil 522.1 931.7 1120.6 1144.4 1302.0
Sales Tax on Imports 981.2 838.0 1080.7 1345.7 1376.7
oil 150.3 244.4 355.0 554.1 473.5
non-oil 830.9 593.6 725.8 791.6 903.3
Others 0.0 0.0 0.0 0.0 0.0
Other tax revenue 0.0 0.0 0.0 0.0 0.0
Nontax revenue 560.4 677.5 905.4 824.7 632.3
Income from enterpris es 0.0 0.0 0.0 238.4
Admin charges and fees 202.9 157.2 262.1 99.3 226.0
Non-tax Rev. from DTD &CED 189.3 192.5 277.3 257.7 403.4
Others 168.3 327.8 366.1 229.3 2.9
Grants 2611.2 725.1 1284.7 722.3 707.6
Project 2315.0 725.1 1284.7 722.3 707.6
Total Expenditure and Net Lending 8690.7 8778.4 11177.3 10770.4 12472.6
Total expenditure 8667.1 8752.6 9757.1 10770.4 12449.1
Recurrent expenditure 5201.6 6450.6 7267.5 8396.2 9860.4
Non-interes t 3989.3 5143.6 5372.9 5598.2 6599.2
Pers onnel emoluments 1804.2 2132.8 1927.7 2037.8 2100.3
o/w: Gross wages, salaries and pensions 1793.3 2064.9 1927.7 2037.8 2100.3
Other Charges 2185.1 3010.8 3445.2 3560.5 4498.9
Goods and s ervices 1539.8 2009.0 2117.4 2066.0 2746.7
Trans fers and s ubs idies 645.3 1001.8 1327.9 1494.5 1752.2
Interes t payments 1212.3 1307.1 1894.6 2798.0 3261.3
Domes tic 1010.8 1056.7 213.0 2298.9 2805.3
External 201.5 250.4 1681.6 499.1 456.0
Capital expenditure 3465.5 2302.0 2489.6 2374.2 2588.7
Domes tic(GLF) 298.7 479.0 658.6 675.5 634.7
Loans 851.9 1135.1 546.2 976.4 1246.4
Grants 2315.0 687.9 1284.7 722.3 707.6
Net Lending 23.6 25.8 1420.2 0.0 23.5
Primary Balance* 2754.6 2244.7 2774.5 453.1 1564.7
Budget deficit/s urplus (commit., excl. grants ) -3966.9 -3551.8 -4669.0 -3251.1 -4826.0
Budget deficit (Commit. bas is , includ. grants ) -1355.7 -2826.6 -3384.3 -2528.8 -4118.4
Cas h adjus tment -2728.3 6310.8 1195.4 -2442.0 -629.7
Overall balance (Cas h bas is , includ. grants ) -4084.0 3484.2 -2188.9 -4970.8 -4748.1
Financing 4084.0 -3484.2 2188.9 4970.8 4748.1
Foreign (net) 1703.7 578.8 -721.4 18.7 471.4
Borrowing 851.9 1135.1 510.6 976.4 1246.4
Project 851.9 1135.1 509.2 976.4 1246.4
Amortization 851.9 -556.3 -1232.0 -957.6 -775.0
Domes tic (net) 2380.3 -4278.5 2910.3 5037.7 4783.9
Banking s ys tem 1363.5 1166.5 3188.3 4083.7 4186.4
Central Bank -11.3 23.1 2011.7 2327.8 2217.8
Depos it Money banks 1374.9 1143.3 1176.6 1755.9 1968.5
Non-bank s ector 1016.8 -5444.9 -278.0 954.0 597.5
Arrears 0.0 -36.5 0.0 -85.6 -507.2
Statis tical dis crepancy 252.0 0.0
Memorandum items:
Total Revenue and Grants /GDP at market prices (%) 24.9 18.4 20.9 20.7 19.3
Domes tic Revenue/ GDP at market prices (%) 16.0 16.1 17.4 18.8 17.7
Tax revenue/ GDP at Market Prices (%) 14.1 14.0 15.0 16.8 16.2
Non Tax Revenue/GDP at market prices (%) 1.9 2.1 2.4 2.1 1.5
Total Expenditure and lending/GDP at market prices (%) 29.5 27.1 29.9 27.0 28.8
Total Expenditure/GDP at Current market prices (%) 29.4 27.0 26.1 27.0 28.8
Overall deficit(commitment bas is excl. grant) / GDP 13.5 11.0 12.5 8.1 11.2
Overall deficit(commitment bas is incl. grant) / GDP 4.6 8.7 9.1 6.3 9.5
Primary balance (excl. grants /GDP) 9.4 6.9 7.4 1.1 3.6
Wages and Salaries /Tax revenue 43.1 45.4 34.4 30.4 29.9
Wages and Salaries /domes tic revenue 38.0 39.5 29.6 27.1 27.5
Domes tic inves tment expenditure/Domes tic revenue 6.3 9.2 10.1 9.0 8.3
GDP at current market prices 29435.0 32429.8 37339.0 39927.3 43262.9
Source: Gambian Authorities

74
Table 10: The Gambia - Monetary Survey ( in millions of dalasi)
2012 2013 2014 2015 2016

Net foreign assets 4,909.6 4,480.7 4,578.9 2,006.0 1,302.0

Monetary Authorities 3,441.8 2,834.5 1,491.5 -140.7 -530.5
Commercial Banks 1,467.8 1,646.3 3,087.4 2,146.7 1,832.6
Net domestic assets 10,967.7 13,828.3 15,785.7 18,121.3 21,957.3
Domestic credit 12,603.4 15,791.7 18,164.1 21,369.2 25,738.6
Claims on government (net) 7,016.6 9,178.5 12,075.7 16,159.4 20,345.8
Total claims on government 8,956.2 11,129.3 14,452.8 15,746.3 23,879.3
Government deposits 1,939.7 1,950.8 2,377.1 -413.1 3,533.5
Claims on public enterprises 764.9 807.1 720.8 590.6 1,055.0
Claims on private sector 4,809.7 5,796.5 5,361.2 4,614.6 4,332.9
Claims on other Financial Institutions 12.3 9.5 6.4 4.6 4.9
Other items, net (assets +) -1,635.8 -1,963.4 -2,378.4 -3,247.9 -3,781.3
Broad money (M2) 15,902.0 18,309.0 20,364.6 20,180.0 23,259.4
Narrow money (M1) 7,395.8 9,518.4 10,482.5 10,313.7 12,270.4
Currency with public 2,818.6 3,255.2 3,508.0 3,652.7 4,725.6
Demand deposits 4,577.2 6,263.2 6,974.5 6,661.0 7,544.8
Quasi money (incl. For. Curr. Deps.) 8,506.2 8,790.6 9,882.1 9,866.3 10,989.0
Memorandum items:
Broad money growth 7.8 15.1 11.2 -0.9 15.3
Reserve Money Growth 6.8 28.1 11.9 10.0 25.2
Change in CBG claims on gov 14.2 2,009.5 1,868.0 2,327.8 2,217.8
Net Foreign Assets change (%) 7.9 -8.7 2.2 -56.2 -35.1
Net Domestic Assets change (%) 7.5 26.1 14.2 14.8 21.2
Net Domestic Assets change (%) CBG -9.9 234.8 77.8 49.4 30.4
Net Domestic Assets change (%)DMB 6.2 15.7 2.7 4.4 16.1
Currency/M2 ratio 17.7 17.8 17.2 18.1 20.3
Velocity (GDP/end-of-period M2+) 1.9 1.8 1.8 1.9 1.9
Reserve money multiplier (M2/RM) 3.8 3.4 3.4 3.0 2.8
Private Sector Credit Growth 20.5 -7.5 -13.9 -6.1
Currency-to-deposits ratio 21.5 21.6 20.8 22.1 25.5
Reserve to deposit ratio 0.1 0.1 0.1 0.2 0.2
Nominal GDP 29,435.0 32,429.8 37,339.0 39,927.3 43,262.9
Source: Central Bank of The Gambia

75
Table 11: The Gambia- Analytical Balance of Payments (in millions of US Dollars)
2012 2013 2014 2015 2016

1. Current Account
A. Goods and Services -201.2 -130.1 -184.9 -212.8 -166.2
Exports, f.o.b. 101.5 108.1 104.6 94.0 97.8
Groundnuts/groundnut products 6.3 10.9 14.2
Other domestic exports 6.2 5.2 10.4
Re-exports 89.0 95.1 80.0

Imports, f.o.b -363.5 -304.1 -335.0 -344.0 -301.4

For domestic use -274.5 -260.6 -255.0

For Re-Exports -89.0 -95.1 -80.0

Trade balance -262.0 -196.0 -230.4 -250.0 -203.6

Services (net) 60.8 65.8 45.5 37.2 37.4

Travel income 92.9 62.4 74.7 71.3
Other services -32.1 3.4 -29.3

B. Income (net) -34.9 -22.4 -24.0 -24.8 -26.9

C. Current Transfers 81.7 47.0 118.4 112.7 112.8

Private transfers 10.3 -12.5 2.0 -39.1 13.9
Official transfers 21.5 10.7 18.1 16.7 0.0
Remittances 49.9 48.8 124.4 135.1 99.9
Current Account Balance
excluding official transfers -175.9 -116.3 -108.6 -141.6 -80.3
including official transfers -154.4 -105.6 -90.5 -124.9 -80.3

2. Capital and Financial Account 184.9 66.4 194.7 156.5 73.0

A. Capital Account 73.9 43.7 120.9 93.4 26.1
Capital transfers 33.5 16.6

Official loans (net) 11.2 10.2 -5.9

Project-related 27.7 29.9 23.8
Amortisation -16.5 -19.8 -29.8

B. Financial Accounts 111.0 22.7 73.7 83.8 46.9

(Net) Foreign direct investment 61.6 15.8 44.1 58.4
(Net) Other Investments 50.5 6.9 28.7 -15.9
Portfolio investment -1.1 0.0 22.8 3.8

Errors and Omissions -30.5 33.5 13.9 9.7 -5.3

Overall balance 0.1 -5.7 118.1 41.3 -12.6

Financing -0.1 5.7 -118.1 -41.3 12.6

Net international reserves
Change in Gross official reserves (incr.= -) -14.1 15.5 23.5
Use of IMF reasources (net) 14.0 3.8 -18.6
Repurchases/repayments, IMF -0.3 -0.9 -17.6
Memorandum Items:
Exchange rate (average) 34.1 38.6 45.0 39.6 43.8
Exchange rate (End of period) 33.9 39.0 45.3 39.8 44.1
External Reserves (million of US$) 183.8 181.9 111.9 76.0 59.8
External Reserves in month of imports cover 4.8 4.6 3.7 2.5 2.4
Imports of goods (CIF) -460.0 -476.3 -159.7 -357.9 -301.4
Imports of goods as % of GDP -53.2 -55.9 -19.2 -35.5 -30.5
Exports of goods (CIF) 101.5 108.1 104.6 94.0 97.8
Exports of goods as % of GDP 11.7 12.7 12.6 9.3 9.9
Current A/c Def.(incl. offic. Trasnfers) as % of GDP -17.9 -12.4 -10.9 -12.4 -8.1
Overall balance as % of GDP 0.0 -0.7 14.2 4.1 -1.3
Nominal GDP (Million Dalasi) 29,435.0 32,886.0 37,339.0 39,927.3 43,262.9
Nominal GDP (Million U.S.$) 864.0 852.4 830.3 1,009.0 987.3
Source: Gamban Authorities

76
 Table 12: Ghana: Output and Prices (in millions of Ghana cedis)
2012 2013 2014 2015 2016

Domestic Output
GDP at Constant 1993/2006 Prices (Cedis million) 30,342.6 32,644.0 33,589.0 34,823.4 36,016.0
Real GDP Growth 9.3 7.3 4.0 3.8 3.5
Sectoral Growth(%)
Agriculture 2.3 5.7 4.6 2.8 3.0
Industrial 11.0 6.6 0.8 -0.3 -1.4
Services 12.1 10.0 5.6 6.3 5.7
GDP at Market Prices (millions) 74,959.1 93,461.5 112,611.0 139,936.0 167,315.5
Agriculture 16,668.2 19,968.9 23,640.0 26,033.00 29,565.00
Industry 20,787.5 25,977.7 30,547.0 32,542.00 37,927.00
Manufacturing 4,642.3 5,282.1 6,122.0 6,196.00 7,273.00
Construction 8,370.4 10,765.0 14,760.0 16,982.00 21,491.00
Services 35,131.5 44,988.0 53,372.0 69,800.00 88,946.00
GDP at factor cost 72,587.1 90,934.7 103,206.0 123,510.00 149,723.00
Net Indirect Taxes 4,688.7 5,945.7 9,404.0 16,426.00 17,593.00
FISIM (Financial Intermediation Services Indirectly Measured) -2316.7 - 3,418.9 0.00 0.00
GDP at Market Prices (millions) 74,959.1 93,461.5 112,611.0 139,936.0 167,315.5
(Sector share in GDP at factor cost)
Agriculture GDP % 22.9 22.4 21.5 20.30 18.90
Industrial GDP % 28.0 27.8 26.6 25.30 24.20
o/w Manufacturing % 5.8 5.3 4.9 4.80 4.60
Construction 11.5 12.0 12.7 13.20 13.70
Services 49.1 49.8 51.9 54.40 56.90
Prices
Consumer Price Index (1997 =100/ 2012=100) 404.0 116.6 136.4 160.50 185.30
Annual Average Inflation Rate 9.2 11.7 15.5 17.10 17.52
End Period Inflation Rate 8.8 13.5 17.0 17.69 15.40
Source: Ghana Statistical Service

77
Table 13: Ghana: Government Fiscal Operations (in millions of Ghana cedis)
2012 2013 2014 2015 2016

Total Revenue and Grants 16,668.4 19,169.7 24,745.5 32,053.1 33,678.1

Total Revenue 15,508.1 18,732.1 23,931.3 29,364.3 32,537.4
Tax Revenue 12,655.1 14,466.7 19,448.0 24,442.9 27,655.0
Tax on Income 5,536.21 6,301.73 8486.6 8,706.5 9,106.9
Internal Levies and taxes on goods and Services 730.29 694.25 764.3 2,401.9 3,982.1
Property Tax
Import Tax 1,886.91 2,230.96 2772.7 3,078.4 4,121.9
Export Tax 103.17 100.00 318.6 370.6 268.5
Value Added Tax 2,777.27 3,317.06 4671.7 6,267.0 7,129.7
Other Tax Revenues 128.38 173.98 216.6 251.8 1,646.0
National Health Ins urance Levy (NHIL)+SSNIT Contribution 713.99 806.71 999.9 1,308.0 1,399.9
Import Exemptions 778.92 842.00 1217.7 2,058.7 -
Non Tax Revenue 2,852.95 4,265.41 4483.4 4,921.4 4,882.4
Grants 1,160.32 437.63 814.1 2,688.8 1,140.7

Total expenditure + Net lending 20,944.7 26,277.2 31,962.2 38,590.1 51,125.2

Total Expenditure 20,944.7 26,277.2 31,962.2 38,590.1 51,125.2
Current expenditure o/w 15,973.4 21,929.4 25,866.5 31,456.5 43,447.1
Wages and Salaries 6,665.52 9,247.24 10466.8 12,111.2 14,164.8
Goods and s ervices 1,321.83 938.48 1776.6 1,388.2 3,220.8
Subs idies and Trans fers 4,477.84 5,707.01 5324.5 6,823.0 8,607.3
Other non-s pecified expenditures (Res erve exp vote) 1,072.09 1,639.68 1217.7 2,058.7 6,683.7
Interes t payments 2,436.2 4,397.0 7,080.9 9,075.4 10,770.5
Domes tic 1,879.71 3,788.25 6111.0 7,312.9 8,466.4
Foreign 556.44 608.73 969.9 1,762.5 2,304.1
Inves tment/ capital Expenditure 4,971.3 4,347.8 6,095.7 7,133.6 7,678.1
Domes tically financed 2,436.68 1,691.16 1265.2 1,215.1 2,048.5
External financed 2,534.61 2,656.62 4830.5 5,918.5 5,629.6
HIPC financed 0.0 0.0 0.0 - -
MDRI financed 0.0 0.0 0.0 - -
Net lending 0.0 0.0 0.0 -

Primary Balance -465.9 -491.5 3,880.5 5,768.1 - 2,187.7

Budget deficits /s urplus (including grants )
Commitment bas is -4,276.3 -7,107.4 -7,216.8 -6,537.0 -17,447.1
Arrears and VAT refunds - 3,829.8 - 2,352.5 -3322.9 (3,049.1) 2,715.3
Cas h bas is -8,106.1 -9,459.9 -10,539.6 (9,586.1) (14,731.8)
Dives ture Receipts 0.0 0.0 0.0 -
Dis crepancy 0.0 5.2 -96.7 825.7 1,586.6
Cas h, including dives ture -8,106.1 -9,454.6 -10,636.3 (8,760.4) -13,145.2
Budget deficits /s urplus (Excluding grants )
Commitment bas is -5,436.6 -7,545.1 -8,030.9 (9,225.8) -18,587.8
Cas h bas is -9,266.5 -9,897.5 -11,353.8 (12,274.9) -15,872.5
Budget deficits /s urplus (Excluding grants , HIPC and MDRI expenditures ) -5,436.6 -7,545.1 -8,030.9 (9,225.8) -18,587.8

Financing 4,276.3 7,107.4 10,636.3 8,760.4 13,145.0

Domes tic 6,288.5 6,229.6 4,762.2 3,060.9 10,945.6
Banking Sys tem 1,282.4 3,592.0 3,018.0 (793.5) 5,546.5
Central Bank 924.8 1,166.5 1,581.5 (201.2) 2,392.00
Commercial Banks 357.6 2,425.5 1436.4 (592.3) 3154.5
Nonbank 4,386.0 3,447.6 2,210.4 3,484.0 5718.1
Others 620.1 -810.0 -466.2 370.4 -319.0
Domes tic Arrears (net change) 0.0 0.0 0.0
Dives titure 0.0 0.0 0.0
Net Savings **/ Other domes tic financing 0.0 -137.5 0.0 (222.6) -205.9
Draw down on Sovereign Bond/ Trans fer to Ghana Petroleum Funds 0.0 -677.7 -225.9 390.3 -113.1
Dis crepancy 620.1 5.2
others -240.3 202.7
Sinking Fund (178.5) -760.9
Adjus tment - 3,287.8 - 2,334.2 0.0 - 0.0
External s ources 1,275.6 3,212.0 5,874.1 5,878.0 2960.3
Drawings (inflows ) 1,855.0 4,033.4 7205.1 8,612.0 7564.0
Debt relief 44.2 0.0 0.0 -
Amortis ation - 623.6 - 821.4 -1330.9 (2,734.0) -4603.7
Memorandum Items
Total Revenue and grants /GDP (%) 22.2 20.5 22.0 22.9 20.1
Domes tic Revenue/GDP at market prices (%) 20.7 20.0 21.3 21.0 19.4
Tax revenue/ GDP at Market Prices (%) 16.9 15.5 17.3 17.5 16.5
Non Tax Revenue/GDP at market prices (%) 3.8 4.6 4.0 3.5 2.9
Total expenditure and lending /GDP market prices (%) 27.9 28.1 28.4 27.6 30.6
Total expenditure/GDP at market prices (%) 27.9 28.1 28.4 27.6 30.6
Overall deficit(commitment bas is excl. grant) / GDP (%) -7.3 -8.1 -7.1 -6.6 -11.1
Overall deficit(commitment bas is incl. grant) / GDP (%) -5.7 -7.6 -6.4 -4.7 -10.4
Overall deficit(com.excl. Grant, HIPC, MDRI exp) / GDP (%) -7.3 -8.1 -7.1 -6.6 -11.1
Wages and Salaries /Tax revenue (%) 52.7 63.9 53.8 49.5 51.2
Central Bank financing/Previous yr.'s tax revenue 9.4 9.2 10.9 -1.0 9.8
Domes tic inves tment expenditure/Tax Revenue 19.3 11.7 6.5 5.0 7.4
Nominal GDP Current market prices (Cedis bils ) 74,959.1 93,461.5 112611 139,936.0 167,315.5
Source: Ghana Authorities

78
Table 14: Ghana: Monetary Survey (in millions of Ghana cedis)
2012 2013 2014 2015 2016

Net foreign assets 8,395.09 5,700.43 8,991.29 11,151.00 15,005.61

Foreign assets 12,028.66 13,992.81 20,379.96 25,816.70 30,385.32
Foerign liabilities 4,945.87 8,292.38 11,388.67 14,665.70 15,379.71
Use of Fund Credit 1,312.30 - - - -

Net domestic assets 14,223.44 21,236.62 27,851.87 35,305.62 41,686.45

Domestic credit 22,543.68 31,525.72 42,272.03 49,017.79 63,351.82
Claims on government (net) 7,734.70 11,326.73 14,344.70 12,845.20 18,333.45
Total claims on government 9,141.06 14,117.31 20,258.52 18,690.80 27,497.30
Treasury bills 1,473.79 1,950.49 5,126.23 6,875.90 7,428.92
Stocks and bonds 7,270.26 11,941.43 13,571.62 11,575.30 19,727.58
Others 397.01 225.40 1,560.66 239.60 340.80
Government deposits 1,406.36 2,790.58 5,913.82 5,845.60 9,163.85
Claims on rest of economy 14,808.98 20,198.99 27,927.33 36,172.59 45,018.37
Claims on public enterprises 3,271.63 5,441.80 6,884.63 7,948.49 9,489.38
Claims on private sector 11,537.36 14,757.20 21,042.70 28,224.10 35,528.99
Other items, net (assets +) - 8,320.24 - 10,289.11 - 14,420.17 - 13,712.17 - 21,665.37

Money Supply (M2+) 22,618.53 26,937.04 36,843.16 46,456.62 56,692.06

Money Supply (M2) 17,501.73 20,692.01 27,530.16 34,862.22 43,452.44
Money Supply (M1) 11,157.20 12,902.54 17,257.60 21,019.62 26,076.34
Currency with public 4,918.57 5,499.68 6,896.31 8,503.72 10,139.81
Demand deposits 6,238.63 7,402.87 10,361.29 12,515.90 15,936.53
Quasi money 11,461.33 14,034.50 19,585.57 25,437.00 30,615.72
Time and savings deposits 6,344.53 7,789.47 10,272.56 13,842.60 17,376.10
Foreign currency deposits 5,116.80 6,245.03 9,313.00 11,594.40 13,239.62
Check - - - - -
Memorandum items:
M2+ growth 23.37 19.09 36.78 26.09 22.03
M2 growth 21.71 18.23 33.05 26.63 24.64
Net claims on government (NCG) 19.87 46.44 26.64 - 10.45 42.73
Net foreign assets 60.07 - 32.10 57.73 24.02 34.57
Reserve money growth 11.74 15.14 30.20 24.20 29.60
Currency/M2+ ratio 21.75 20.42 18.72 18.30 17.89
Velocity (GDP/broad money) 3.31 3.47 3.08 3.01 2.95
Money multiplier (M2+/RM) 2.88 2.98 3.13 3.17 2.99
Private Sector Credit growth 30.66 27.91 42.59 34.13 25.88
Currency-to-Deposits Ratio 27.79 25.65 23.03 22.41 21.78
GDP at current market prices 74,959.05 93,461.45 113,436.00 139,936.00 167,315.50
Source: Ghana Authorities

79
Table 15: Ghana: Analytical Balance of Payments (in millions of US dollars)
2012 2013 2014 2015 2016

Merchandise Exports(fob) 13552.3 13751.9 13213.2 10,321.2 11,136.9

Traditional 8145.2 6964.5 6548.1 5,392.3 7,097.0
o/w Cocoa 2192.7 1612.1 1848.8 1,970.9 1,923.3
Gold 5643.3 4965.7 4388.1 3,212.6 4,919.5
Non traditional 5407.1 6787.4 6665.1 4,928.9 4,039.9
o/w Oil 2976.1 3885.1 3725.0 1,931.3 1.345.22
Merchandise Imports (fob) -17763.2 -17600.3 -14600.1 - 13,465.2 - 12,910.2
Oil -3330.6 -3550.4 -3694.0 - 2,046.7 - 1,825.0
Non-Oil -14432.6 -14049.8 -10906.1 - 11,418.5 - 11,085.2
Net Merchanting Export (fob) - -
Trade balance -4210.9 -3848.3 -1386.9 - 3,144.0 - 1,773.3

Services (Net) -975.2 -2443.8 -2602.3 - 1,166.6 - 1,293.3

Factor services(freight-net) -1022.8 -1019.6 -753.0 - 1,166.6 - 1,293.3
Other Services (Net) 47.6 -1424.1 -1849.3 - -
Income (Net) -2130.0 -1351.4 -1717.4 - 1,110.9 - 1,222.1
Investm ent Incom e-credit 55.3 284.5 110.8 394.4 238.0
Investm ent Incom e-debit -2185.2 -1635.9 -1828.2 - 1,505.3 - 1,460.0
Current Transfers (net) 2405.3 1939.4 2008.5 2,597.7 1,456.6
Private transfers (net) 2147.5 1859.2 1998.9 2,375.3 1,431.0
Official transfers (net) 257.8 80.3 9.6 222.4 25.6
Current Account Balance
Excluding official transfers -5168.5 -5784.4 -3707.7 - 3,046.2 - 2,857.7
Including official transfers -4910.7 -5704.1 -3698.1 - 2,823.8 - 2,832.1

Capital Account 283.4 19.6 0.0 473.9 274.3

Official capital 283.4 19.6 0.0 473.9 274.3
Inflows/disbursem ents 283.4 19.6 0.0 473.9 274.3

Financial Account 3367.9 4872.7 3752.8 2,649.4 2,493.5

Direct investm ent abroad -1.1 -0.7 -6.4 - -
Direct investm ent in reporting econom y 3294.5 3227.0 3363.4 2,970.9 3,470.7
Portfolio investm ent (net) 1121.8 658.9 835.9 - -
other investm ent (net) -1047.4 987.5 -440.1 - 321.5 - 977.2

Errors and Ommisions 48.5 -354.1 -139.9 - 315.4 311.7

Overall Balance -1210.9 -1165.9 -85.2 - 15.9 247.4

Financing 1210.9 1165.9 85.2 15.9 - 247.4

Net International reserves 1210.9 1165.9 85.2 15.9 - 247.4

Other Reserves Changes 1210.9 1165.9 85.2 15.9 - 247.4
Mem orandum Item s
End of Period exchange rate (Cedi/$) 1.9 2.2 3.2 3.8 4.2
Average exchange rate (Cedi/$) 1.8 2.0 2.9 3.8 4.2
External Res erves (million of US$) 5348.9 5,632.2 5,461.0 4,403.1 4,862.1
External Res erves In month of imports cover 3.4 3.6 4.2 3.6 4.2
Im ports of goods (cif) 19142.0 18,950.0 15,670.3 14,541.99 13,951.68
Im ports of goods as % of GDP -42.6 - 36.8 - 38.1 -36.5 - 31.6
Exports of goods (FOB) 13552.3 13,751.9 13,213.2 10,321.2 11,136.9
Exports of goods as % of GDP 32.5 28.7 34.5 28.0 27.3
Capital account balance as % of GDP 0.7 0.0 - 1.3 0.7
Current A/C bal. (Incl. Off. transfers)/GDP -11.8 - 12.1 - 9.7 - 8.3 - 7.0
Overall Balance/GDP -2.9 - 2.4 - 0.2 - 0.0 0.6
Nominal GDP ($ million) 41740.5 47,836.8 38,303.0 36,922.4 40,839.5
Source: BoG

80
Table 16: Guinea: Output and Prices (in millions of GNF)
2012 2013 2014 2015 2016

GDP at market prices 53,358.1 57,855.7 61,573.5 65,627.2 75,000.4

Consumption 46,975.3 54,641.5 59,853.8 65,993.7 74,256.1

Public 5,915.1 7,223.1 10,933.3 12,962.0 13,089.8
Private 41,060.2 47,418.4 48,920.5 53,031.7 61,166.3

Gross fixed capital formation 14,295.3 12,907.7 14,329.5 15,358.8 13,408.9

Government 2,898.5 3,891.4 6,061.8 6,450.6 5,052.0
Other sectors 11,396.8 9,016.3 8,267.7 8,908.2 8,357.0
Change in stock 509.5 48.3 83.8 114.2 2,279.4

Foreign balance -10,846.7 -11,485.4 -14,292.1 -17,123.9 -14,944.0

Exports of goods and services 16,635.7 15,898.3 16,192.2 15,182.5 20,198.1
Imports of goods and services -27,482.4 -27,383.7 -30,484.2 -32,306.5 -35,142.1

GDP at constant prices (2010=100)(billion GNF) 43,898.1 45,625.4 47,317.0 49,425.8 52,017.4
Real GDP growth rate 5.9 3.9 3.7 4.5 5.2
Inflation rate end period 12.8 10.5 9.0 7.3 8.7
Inflation rate average 15.2 11.9 9.7 8.2 8.2
Source: National Planing Department

81
Table 17: Guinea: Government Fiscal Operations (in billions of GNF)
2012 2013 2014 2015 2016

Total Revenue and Grants 9,659.1 9,873.6 9,702.3 9,749.3 12,325.5

Total Revenue 7,975.5 7,890.0 8,537.1 8,988.4 11,391.2
Tax Revenue 7,600.5 7,619.2 8,058.9 8,579.0 10,929.6
o/w minning sector 1,607.1 1,488.9 1,348.3 1,557.7 1,671.0
No mining sector 6,368.4 6,401.2 7,188.8 7,430.7 4,589.4
non-mining sector 6,368.4 6,401.2 7,188.8 7,430.7 9,720.2
Tax on Income 1,776.2 1,484.4 1,382.3 1,376.4 1,889.6
Internal Levies/taxes on goods/Services 2,765.4 2,943.3 3,343.0 3,824.1 5,342.3
Property Tax
Taxes on international Trade 1,451.9 1,702.6 1,985.4 1,820.9 2,026.7
Non Tax Revenue 375.0 270.8 478.3 409.4 461.6
Income from Enterprises and sale of assets
Administrative charges and duties 375.0 270.8 478.3 409.4 461.6
Grants 1,683.6 1,983.6 1,165.2 337.8 833.6
Grants allocated 677.1 640.5 319.9 249.3 91.8
Grants non allocated 348.3 177.0 845.3 88.6 741.8
Special Budget Allocation (including Ebola fund) 0.0 0.0 0.0 423.1 100.7

Total expenditure + Net lending 10,146.1 11,265.1 11,680.1 14,286.1 12,439.1

Total Expenditure 9,895.5 11,255.6 11,591.3 13,809.2 12,264.2
Current expenditure 6,094.6 7,142.9 7,652.4 8,819.0 8,582.1
Wages and Salaries 1,756.9 2,102.0 2,370.2 2,720.9 2,936.9
Others goods and services 2,355.6 2,498.9 2,605.3 2,849.2 2,588.4
Subsidies and tranfers 1,504.7 1,860.0 2,081.0 2,706.9 2,212.1
Interest due 477.5 682.1 595.9 542.1 844.7
External 271.5 260.9 92.3 109.1 235.7
Domestic 206.0 421.2 503.7 433.0 609.1
Capital Expenditure 3,800.9 4,112.7 3,938.9 4,990.2 3,682.0
Externally financed 1,112.8 1,910.7 743.4 1,653.1 292.7
Domestically financed 2,688.1 2,202.1 3,195.5 3,337.1 3,389.3
Net lending(Inclu. Restruct. expenditures) 250.6 9.5 88.7 13.2 49.0
Special Budget Allocation (including Ebola fund) 0.0 0.0 0.0 463.7 125.8
Primary Balance -580.3 -782.3 -1,803.6 -3,102.5 89.6

Commitment basis (including grants) -486.9 -1,391.5 -1,977.7 -4,536.8 -113.6

Commitment basis (excluding grants) -2,170.5 -3,375.0 -3,142.9 -4,874.6 -947.2
Float expenditures -348.0 -178.4 45.2 296.3 158.2
Arrears -16.4 7.2 8.4 5.7 -1.6
Other adjusment Cash basis accounting -81.3 9.3 5.6 63.0 12.4
Overall Cash basis accounting -932.7 -1,553.4 -1,918.6 -4,171.8 55.5

Financing 486.9 1,391.5 1,977.7 4,536.8 113.6

Domestic 1,466.9 1,341.9 1,017.8 2,486.5 205.8
Banking system 1,335.6 1,164.8 978.9 2,527.1 334.5
Central Bank 1,868.5 930.5 944.1 2,012.1 109.1
Net financing BCRG / Treasury -2,791.9 -1,861.5 -916.8 2,012.1 225.4
Commercial Banks -532.9 234.3 34.7 515.1 225.4
Non banking -3.2 209.3 -92.9 -93.2 -628.5
Others (GSM) -3.2 9.3 7.9 56.5 4.9
Reimboursement of other net non banking borrings 0.0 200.0 -100.7 -149.8 -183.3
Other adjusment 134.5 -32.2 131.8 4.3 507.5
External sources -534.2 211.6 908.0 1,685.3 -261.3
withdrawals on Project Loans 938.6 1,511.7 1,253.8 1,403.8 200.9
external debt Service -1,522.3 -1,481.9 -418.9 -387.5 -456.5
Rescheduling Multilateral 36.2 157.9 29.3 68.1 0.0
Exter Payment Arrears -122.8 18.3 43.7 5.1 -5.7
Gap (Including Floats expenditures and Arriers) -445.8 -161.9 51.9 365.0 169.1
Memorandum Items
Total Revenue and Grants/GDP (%) 18.1 17.1 15.8 14.9 16.4
Domestic Revenue/GDP (%) 14.9 13.6 13.9 13.7 15.2
Tax revenue/ GDP at Current Market Prices (%) 14.2 13.2 13.1 13.1 14.6
o/w minning sector 3.0 2.6 2.2 2.4 2.2
No mining sector 11.9 11.1 11.7 11.3 6.1
Non Tax Revenue/PIB (%) 0.7 0.5 0.8 0.6 0.6
Grants/GDP (%) 3.2 3.4 1.9 0.5 1.1
Total expenditure + Net lending/GDP (%) 19.0 19.5 19.0 21.8 16.6
Total expenditure /GDP (%) 18.5 19.5 18.8 21.0 16.4
Current expenditure/GDP (%) 11.4 12.3 12.4 13.4 11.4
Capital expenduture (% of GDP) 7.1 7.1 6.4 7.6 4.9
Primary balance/GDP (%) -1.1 -1.4 -2.9 -4.7 0.1
Overall deficit(comm. basis excl. grant)/GDP (%) -4.1 -5.8 -5.1 -7.4 -1.3
Overall deficit(comm. basis incl. grant)/GDP (%) -0.9 -2.4 -3.2 -6.9 -0.2
Wages and Salaries/Tax revenue (%) 23.1 27.6 29.4 31.7 26.9
Domestic Capital expenditure/Tax revenue (%) 35.4 28.9 39.7 38.9 31.0
Capital expenditure/GDP (%) 7.1 7.1 6.4 7.6 4.9
Central Bank financing/Previous yr.'s tax revenue -53.9 -24.5 -12.0 25.0 1.9
Nominal GDP Current market prices (GNF bils) 53,358.1 57,855.7 61,573.5 65,627.2 75,000.4
Source : Guinea Authorities and WAMI Staff estimates

82
Table 18: Guinea - Monetary Survey (in billions of GNF)
2012 2013 2014 2015 2016

Net Foreign Assets 4,522.0 4,489.5 3,404.5 1,792.6 3,030.1

Central Bank 2,923.4 3,144.8 3,276.8 1,290.3 2,530.7
Commercial banks 1,598.6 1,344.7 127.7 502.3 499.5
Net Domestic Assets 6,927.9 8,578.0 11,267.3 15,851.7 16,364.5
Domestic Credit 8,278.6 10,553.2 13,320.4 17,435.5 18,281.1
Net Claims on Govt. 5,139.8 6,304.6 7,283.5 9,810.6 10,145.1
Central Bank 3,466.6 4,397.1 5,341.2 7,353.3 7,462.3
Net financing BCRG / Treasury -2,791.9 -1,861.5 -916.8 1,095.3 -214.4
Commercial Banks 1,673.2 1,907.5 1,942.3 2,457.4 2,682.8
Claims on public ent. 70.2 104.7 69.9 41.5 10.0
Claims on priv. sector 3,068.6 4,143.8 5,967.0 7,583.4 8,126.0
OIN( assets +)* -1,350.8 -1,975.1 -2,053.0 -1,583.8 -1,916.7
Claims on priv. sector (million USD) 440.3 591.5 825.6 947.5 880.8
Broad Money ( M2) 11,449.9 13,067.5 14,671.8 17,644.3 19,394.6
Narrow Money (M1) 8,260.4 9,256.6 10,803.3 13,032.4 14,104.0
Reserve Money 6,430.5 7,440.8 8,520.9 8,738.9 10,096.6
Quasi-money 3,189.5 3,810.9 3,868.5 4,612.0 5,290.7
Currency in circulation 3,705.5 4,052.0 4,323.0 5,178.0 5,608.0
Demand Deposits 4,554.8 5,204.6 6,480.3 7,854.3 8,495.9
Time and Saving Deposits 490.1 870.8 1,229.4 1,203.8 1,240.6
Foreign Currency Deposits 2,699.4 2,940.1 2,639.1 3,408.2 4,050.1
Memorandum Items
Broad money (12 month change in %) 1.1 14.1 12.3 20.3 9.9
Net claims on government growth (%) 35.1 22.7 15.5 34.7 3.4
Net foreign assets growth (%) -8.0 -0.7 -24.2 -47.3 69.0
Reserve money growth (%) -2.9 15.7 14.5 2.6 15.5
Deposits in foreing curr/Total Deposits 10.8 16.7 19.0 15.3 14.6
Deposits/Broad Money Ratio (%) 39.8 39.8 44.2 44.5 43.8
Currency/Broad money Ratio (%) 32.4 31.0 29.5 29.3 28.9
Privite Sector Credit (% GDP) 5.8 7.2 9.7 11.6 10.8
Velocity (GDP/Broad Money) 4.7 4.4 4.2 3.7 0.0
Money multiplier (M2+/RM) 1.8 1.8 1.7 2.0 1.9
Broad money ( % GDP) 21.5 22.6 23.8 26.9 25.9
GDP at market prices 53,358.1 57,855.7 61,573.5 65,627.2 75,000.4
Source: Central Bank and WAMI Staff estimation
*+Assets

83
Table 19: Guinea – Balance of Payments (in millions of US)
2012 2013 2014 2015 2016

Merchandise Exports (FOB) 1,927.6 1,886.3 2,066.3 1,781.2 2,414.4

Merchandise Imports and Services debit (CIF) -2,557.9 -2,435.4 -2,680.8 -2,380.1 -5,142.3
Merchandise Imports (FOB) -2,254.0 -2,139.1 -2,372.4 -2,191.8 -4,429.4
Trade balance -326.4 -252.8 -306.1 -410.6 -2,015.1
Services : Credit 168.7 103.5 63.9 78.3 57.0
Services : Debit -891.4 -694.4 -545.1 -503.3 -712.8
Services (Net) -722.7 -590.9 -481.2 -425.0 -655.9
Balance of Goods and Services -1,049.1 -843.6 -787.3 -835.6 -2,670.9
Investment Income - Credit 31.5 3.6 21.5 35.5 34.1
Investment Income - debit -153.5 -408.8 -233.7 -178.7 -188.9
Income (Net) -122.0 -405.2 -212.2 -143.3 -154.8
Balance of Goods, Serv & Income -1,171.1 -1,248.8 -999.5 -978.9 -2,825.8
Transfers 132.5 87.9 17.8 -41.3 80.8
Current transfers - credit 305.3 309.7 2,086.7 1,247.2 964.1
Current transfers - debit -172.9 -221.8 -2,068.8 -1,288.5 -883.3
Current Account Balance -1,038.6 -1,161.0 -981.7 -1,020.2 -2,744.9
Capital Account 248.4 243.8 257.9 230.9 164.2
Capital Account - Credit 251.3 245.7 258.6 231.6 168.5
Capital Account - Debit -2.9 -1.9 -0.7 -0.7 -4.2
Financial Account 594.2 644.8 435.2 289.8 2,579.7
Direct Investment - credit -2.9 -1.1 77.1 48.2 0.0
Direct Investment - Debit 606.5 134.0 0.0 0.0 1,597.3
Portfolio Investment (Assets) -3.1 0.0 16.4 54.7 1.1
Capital Transfers - credit -98.4 -98.7 0.0 0.0 0.0
Other Investments 92.1 610.6 341.7 186.9 981.3
Errors and Omissions 1.3 0.9 34.0 -0.4 0.1
Overall Balance -194.7 -271.6 -254.6 -499.8 -0.8
Financing 194.7 271.6 254.6 499.9 0.8
Changes in Foreign Reserves -31.9 -50.6 -37.7 250.6 -208.2
Utilisation of IMF Credit -2.0 0.0 18.8 39.0 40.6
Exceptional Financing 228.7 322.2 273.4 210.3 168.3
Disbursement on New loans 72.0 193.2 135.4 182.7 148.3
Debt Cancellation 169.9 165.8 0.0 2.3 0.0
Debt rescheduling 29.6 23.3 133.0 24.2 7.0
Arrears Accumulation 0.0 0.0 5.0 1.1 13.1
Rescheduling of Arrears -6.2 -23.3 0.0 0.0 0.0
Memorandum Items
Average exchange rate (C/S) 6,985.8 6,907.9 7,014.1 7,458.4 8,850.3
End of Period exchange rate (C/S) 6,969.8 7,005.8 7,227.7 8,003.7 9,225.3
Trade balance/GDP ( %) -4.3 -3.0 -3.5 -4.7 -23.8
Current account balance/GDP (%) -13.6 -13.9 -11.2 -11.6 -32.4
Capital account balance/GDP ( %) 3.3 2.9 2.9 2.6 1.9
Financial account balance/GDP (%) 7.8 7.7 5.0 3.3 30.4
Overall Balance/GDP (%) -2.5 -3.2 -2.9 -5.7 0.0
Gross International Reserves 643.4 711.9 710.4 465.4 614.7
Months of Import cover 3.0 3.5 3.2 2.3 1.4
Import on goods (CIF) -2,557.9 -2,435.4 -2,680.8 -2,380.1 -5,142.3
Debt Service Payments/Export (%) 11.9 3.1 3.5 3.7 3.5
Debt Service Payments (as % GDP) 3.0 0.7 0.8 0.8 1.0
Debt service Payments (USD mils) 229.2 59.4 72.8 66.3 83.4
Imports (% of GDP) 29.5 25.5 27.0 24.9 52.3
Exports (% of GDP) 25.2 22.5 23.5 20.2 28.5
Nominal GDP (USD mils) 7,638.0 8,375.3 8,778.5 8,799.0 8,474.3
Source: Country Authority and WAMI Staff estimation

84
Table 20: Liberia: Output and Prices (in millions of USD)
2012 2013 2014** 2015** 2016**

GDP at Constant Price (1992=100) 819.3 890.3 896.6 896.6 891.9

Constant GDP Growth Rate 8.1 8.7 0.7 0.0 -0.5
Inflation Rate- Year on year (Average) 6.8 7.8 9.9 7.9 10.2
Sectorial Growth (% )
Primary Sector 1.9 (0.1) (2.0) 1.1 2.2
Agriculture & Fisheries 1.9 (0.3) (3.7) 0.7 6.4
Forestry 1.7 0.6 2.2 2.0 (7.6)
Secondary Sector 41.0 32.4 1.9 (11.0) (16.6)
Mining & Panning 94.1 49.9 3.3 (15.9) (23.9)
Manufacturing 3.3 9.1 (0.7) (1.5) (4.7)
Tertiary Sector 4.5 7.2 2.3 4.3 3.9
Services 4.5 7.2 2.3 4.3 3.9

GDP at Current Price 1,745.9 1,961.9 2,013.4 2,052.7 2,112.4

Composition/Sectoral Distribution of GDP
Primary Sector 692.2 654.3 680.7 696.7 765.9
Agriculture & fisheries 552.6 513.9 521.9 527.8 608.5
Forestry 139.6 140.4 158.8 168.9 157.4
Secondary Sector 243.4 408.0 289.1 194.2 162.8
Mining and Panning 175.9 331.0 200.7 93.2 76.5
Manufactuturing 67.5 77.0 88.4 101.0 86.3
of which Water and Electricity
Tertiary Sector 810.3 899.6 1,043.6 1,161.8 1,183.7
Services 810.3 899.6 1043.6 1161.8 1183.7
Sources: Liberia authorities and WAMI
*Projection, **Revised

85
Table 21: Liberia - Government Fiscal Operations (in millions of USD)
2012 2013 2014 2015 2016

Total Revenue and Grants 509.9 564.7 573.3 611.0 563.6

Total Revenue 466.6 502.9 526.4 562.9 528.9
Tax Revenue 393.1 377.9 393.4 389.9 382.0
Tax on Income, profits and capital gains 151.2 159.5 169.6 144.70 153.4
Internal levies & tax on goods & services 68.2 58.5 57.6 47.30 52.2
Export tax 2.9 0.4 166.2 0.6 0.5
Import tax 150.7 148.2 153.6 186.10 174.9
Other tax revenue 23.0 11.7 12.6 11.80 1.6
Non-tax revenue 73.5 125.0 133.0 173.0 146.9
Income from enterprises & sales of assets 36.1 67.7 63.3 28.70 43.8
Administrative charges and duties 11.3 20.5 20.1 14.90 18.8
Other receipts: Contingency and Borrow 26.1 36.8 49.6 129.40 84.3
Grants 43.3 61.8 46.9 48.05 34.7

Total Expenditure and Net Lending 378.4 574.8 569.6 578.4 516.8
Total Expenditure 378.4 574.8 569.6 578.4 516.8
Current Expenditure 340.3 524.7 523.7 527.1 481.9
Wages & Salaries 108.8 197.0 213.6 229.3 219.1
Interest on gov't debt 8.4 10.6 2.9 32.1 10.1
Domestic 4.6 10.6 1.9 6.6 5.5
External 3.8 0.0 1.0 25.5 4.6
Others: goods, services and transfers etc 223.1 317.1 307.2 265.7 252.6
o/w DDR
Capital/Investment Expenditure 38.1 50.1 45.9 51.3 34.9
Domestically Financed 38.1 50.1 45.9 51.3 34.9
Budget Deficit (incl. Grants) Commitment basis 131.4 -10.1 3.7 32.6 46.9

Budget Deficit (excl. Grants) Committment basis 88.2 -71.9 -43.2 -15.5 12.1
Primary Domestic Balance 50.0 -122.0 -89.1 -66.8 -22.8

Financing -131.4 10.1 -3.7 -32.6 -46.9

Domestic 4.1 5.4 -36.9 -69.8 -12.2

Banking system 4.1 5.4 -36.9 -69.8 -12.2
Central Bank 6.9 (17.0) (54.6) (75.4) -23.5
Commercial Banks (2.9) 22.3 17.7 5.5 11.3
Float/unaccounted -135.5 4.7 33.2 37.2 -34.7
Memorandum Items
Total Revenue and Grants/GDP (%) 29.2 28.8 28.5 29.8 26.7
Total Dom Revenue/GDP (%) 26.7 25.6 26.1 27.4 25.0
Tax revenue/ GDP at Current Market Prices (%) 22.5 19.3 19.5 19.0 18.1
Total expenditure/GDP (%) 21.7 29.3
Total expenditure + Net lending/GDP (%) 21.7 29.3 28.3 28.2 24.5
Current Expenditure/GDP (%) 19.5 26.7 26.0 25.7 22.8
Primary balance / GDP (%) 2.9 -6.2
Overall deficit(comm. basis excl. grant) / GDP (%) -5.0 3.7 2.1 0.8 -0.6
Overall deficit(comm. basis incl. grant) / GDP (%) -7.5 0.5 -0.2 -1.6 -2.2
Wages and Salaries/Tax revenue (%) 27.7 52.1 54.3 58.8 57.4
Domestic investment expenditure/Tax Revenue 9.7 13.3 11.7 13.2 9.1
Central Bank financing/Previous yr.'s tax revenue 0.0 0.0 0.0 0.0 0.0
Nominal GDP Current market prices (in million USD) 1,745.9 1,961.9 2,013.4 2052.7 2112.4
Source: Liberia authorities

86
Table 22: Liberia - Banking System Monetary Survey (in millions of Liberian dollars)
2012 2013 2014 2015 2016

Net Foreign Assets 25,418.7 28,359.4 34,864.9 33,877.0 38,612.8

Central Bank 16,143.3 18,010.3 20,611.3 24,222.1 30,480.7
Deposit Money Banks 9,275.4 10,349.2 14,253.6 9,654.9 7,980.14
Use of Fund Credit
Net Domestic Assets 19,323.7 26,597.0 18,832.0 26,750.3 28,099.1
Domestic Credit 37,765.2 49,950.3 48,584.7 49,941.7 61,231.9
Claims on Government (Net) 15,577.6 18,425.0 15,381.4 10,651.1 12,782.5
Total Claims on Government 20,305.8 23,576.6 24,600.0 26,747.5 31,165.9
Government Deposits 4,728.1 5,151.6 9,218.5 16,096.4 18,383.5
Claims on Public Enterprises 1,614.5 1,862.6 1,874.7 2,908.1 5,355.1
Claims on Private Sector 20,414.9 29,548.0 31,202.4 36,183.0 42,885.3

Claim on NBFIS* 158.2 114.6 126.1 199.5 209.0

Other Items, Net (Assets +) /1 (18,441.5) (23,353.2) (29,752.7) (23,191.4) (32,980.8)

Broad Money (M2) 44,742.4 54,956.5 53,696.9 60,627.3 66,711.9

Reserve money 23,006.8 22,525.9 22,451.7 22,142.0 25,401.0
Narrow Money 30,132.7 38,666.6 36,634.5 41,036.5 45,418.0
Currency with Public 7,291.3 8,271.8 8,359.0 9,656.2 11,851.6
Demand Deposits 22,841.4 30,394.8 28,275.5 31,380.3 33,566.4
Quasi Money 14,609.7 16,289.9 17,062.4 19,590.8 21,293.9
Time and Savings Deposits 13,273.2 16,252.3 17,011.4 19,496.3 20,764.0
Other Deposits 1,336.5 37.6 51.0 94.6 529.9
Memorandum Items
Broad money growth (in %) 3.0 22.8 (2.3) 12.9 10.0
Net foreign assets growth (in %) (5.2) 11.6 22.9 (2.8) 14.0
Net Domestic Assets growth (in %) 16.3 37.6 (29.2) 42.0 5.0
Deposits/Broad Money (in %) 51.1 55.3 52.7 51.8 50.3
Reserve money (12 month change in %) 9.3 (2.1) (0.3) (1.4) 14.7
Ratio (Currency/Broad money) 16.3 15.1 15.6 15.9 17.8
Private Sector Credit as percent of GDP 16.1 18.3 18.8 19.9 20.6
Velocity (GDP/broad money) 2.8 2.9 3.1 3.0 3.1
Money multiplier (M2+/RM) 1.9 2.4 2.4 2.7 2.6
Currency-to-deposit ratio (%) 19.5 17.7 18.4 18.9 21.6
GDP at market prices 126,577.8 161,856.8 166,105.5 181,664.0 207,719.3
Source: Liberia authorities

87
Table 23: Liberia - Balance of Payments (in millions of USD)
2012 2013 2014 2015* 2016

Current Account (1,071.9) (994.3) (631.1) (852.3) (325.4)

Trade Balance (566.6) (545.8) (741.0) (1,286.1) (1,040.7)
Merchandise Exports (FOB) 444.4 558.9 437.0 265.3 169.6
Iron ore 117.1 314.2 227.8 141.80 49.6
Rubber 176.8 132.8 106.3 61.10 58.8
Non-Iron ore & rubber 150.5 111.9 102.9 62.35 61.2
Total Exports to ECOWAS Countries `
Merchandise Import (FOB) (1,011.0) (1,104.7) (1,178.0) (1,551.4) (1,210.3)
Oil (256.9) (386.2) (461.7) (365.70) (289.7)
Non-Oil (754.1) (718.4) (716.3) (1,185.70) (920.6)
Total Imports from ECOWAS Countries
Services (net) (658.4) (832.8) (1,003.2) (754.9) (473.4)
Services (net) (658.4) (832.8) (1,003.2) (754.94) (473.4)
Receipts 208.8 228.7 234.14 200.8
Payments (1,041.6) (1,281.9) (989.08) (674.2)
of which: UNMIL services (539.4) (479.9) (411.80) (22.9)

Income (net) (944.0) (531.9) (338.0) (394.3) (252.7)

Income (Credit) (944.0) 16.2 (336.0) 25.27 23.3
Income (Debit) (548.1) (2.0) (419.60) (276.0)

of which: Public interest payments due 0.0 0.0 (2.0) (3.00) (4.4)
Current Transferts (Net) 1,097.1 916.2 1,451.0 1,583.1 1,441.5
Official Transferts (net) 956.8 845.2 1,395.0 1,074.75 985.5
Private Transferts (net) 140.3 71.0 56.0 508.38 456.0
of which: Ebola-related grants 0.0 0.0 56.0 46.00 0.0
Current account balance 0.0 0.0 (632.0) (852.28) (325.4)
Current account balance, excluding grants 0.0 0.0 (1,892.0) (2,435.41) (1,766.9)
Capital and Financial accounts (net) 1,871.5 750.4 595.0 (1028.6) (951.8)
Capital Account 312.2 63.7 117.0 53.0 41.6
Capital account (HIPC debt relief)* 312.2 0.0 0.0 0.0 0.0
Others Capital account 0.0 63.7 117.0 53.00 41.6

Financial Account 1,559.3 686.7 478.0 (1,081.6) (993.4)

Foreign Direct Investment (net) 984.6 541.5 225.0 (720.88) (501.7)
Portfolio Investment (Net) - 0.0 0.0 - 0.0
Other Investment (Net) 547.3 104.4 253.0 (360.74) (491.7)
Errors and Omissions 690.6 (253.1) 0.0 (161.40) (526.8)

Overall Balance 1,490.1 (496.9) (36.1) (182.16) (182.8)

Financing (109.0) (9.2) 36.1 75.1 64.1

Changes in Foreign Reserves (gross official reserves) (109.0) (6.7) (18.0) 28.40 27.0
Utilisation of IMF Credit and loans 0.0 (6.7) 54.1 10.20 37.1
Exceptional Financing 0.0 4.2 0.0 36.50 0.0
Memorandum Items
Stock of External Reserves(including SDR) 258.5 503.7 532.2 509.32 536.3
Month of Import Cover 2.8 5.3 2.5 2.3 3.3
Imports of Goods & Services(CIF) 463.8 312.8 1,551.4 2,676.25 1976.1
Imports of goods (CIF) 1,122.2 1,145.6 2,554.6 1,687.16 1301.8
Imports of goods as % of GDP (57.9) (56.3) (58.5) (75.6) (57.3)
Exports of goods as % of GDP 25.5 28.5 21.7 12.9 8.0
Current A/c as % of GDP (61.4) (50.7) (31.3) (41.5) (15.4)
Capital account as % of GDP 17.9 3.3 5.8
Overall balance as % of GDP 85.3 (25.3) (1.8) (8.9) (8.7)
Nominal GDP market prices (in million of US$ mil) 1,745.9 1,961.9 2,013.4 2,052.7 2,112.4
Source: Liberia authorities *Revised

88
Table 24: Nigeria – Output and Prices (in billions of Naira)
2012 2013 2014 2015 2016

Domestic Output
GDP at Constant 2010 prices (N billion) 59,929.89 63,218.72 67,152.79 69,023.9 67,984.2
Real GDP growth rate 4.21 5.49 6.22 2.8 - 1.5
GDP at current market prices (N billion) 72,599.63 81,009.96 90,136.99 94,145.0 101,598.5
Net Taxes on Product 885.69 917.40 1,093.37 1,032.8 1,085.9
GDP at current basic prices (N billion) 71,713.94 80,092.56 89,043.62 95,177.7 102,684.4

1.Agriculture 14,329.71 14,750.52 15,380.39 15,952.2 16,607.3

2. Industry 15,350.45 13,014.51 13,791.25 13,319.1 12,115.0
o/w Crude Petroleum 8,173.26 7,105.28 7,011.00 6,630.0 5,725.2
o/w Mining and Quarrying 59.12 74.04 95.21 102.5 87.6
o/w Manufacturing 764.10 823.86 6,685.04 6,586.6 6,302.2
3. Construction 1,989.46 2,272.38 2,568.46 2,680.2 2,520.9
4.Trade 9,853.68 10,507.90 11,125.80 11,697.6 11,669.1
5. Services 30,249.74 32,785.73 24,286.89 25,374.8 25,071.9

Sectoral Real Growth Rates (% )

1.Agriculture 6.7 2.9 4.3 3.7 4.1

2. Industry 2.4 2.2 5.9 - 3.4 - 9.0
o/w Crude Petroleum -5.0 -0.4 -1.0 -5.4 - 13.6
o/w Manufacturing 13.5 21.8 14.7 - 1.5 - 4.3
3. Construction 9.4 14.2 12.9 4.4 - 5.9
4.Trade 2.2 6.6 5.9 5.1 - 0.2
5. Services 4.0 8.4 7.1 4.5 - 1.2

Sectoral Shares in GDP at constant price(% )

1.Agriculture 23.9 23.3 22.8 23.1 24.4
2. Industry 25.6 24.8 20.6 19.3 17.8
o/w Crude Petroleum 13.6 11.2 10.5 9.6 8.4
o/w Manufacturing 8.0 9.2 10.0 9.5 9.3
3. Construction 3.3 3.6 3.8 3.9 3.7
4.Trade 16.4 16.6 16.6 16.9 17.2
5. Services 50.5 31.7 36.2 36.8 36.9
Inflation rate (end period) 12.0 8.0 8.0 9.6 18.6
Source: National Bureau of Statistics (NBS)
** = Starting 2012, Sectoral Categories are Five (5)

89
Table 25: Nigeria - Consolidated Fiscal Operations of the Federation (in billions of Naira)
2012 2013 2014 2015 2016

Total Revenue and Grants 8,646.2 7,472.0 5,470.4 3,994.5 4,232.4

O/w: Retained Revenue available for Fed. Govt. 3,131.1 3,362.2 3,287.8 3,209.6 2,947.5
Total Revenue 8,646.2 7,472.0 5,470.4 3,994.5 4,232.4
Tax Revenue (Net) 5,007.7 4,805.6 1386.0 1,482.7 1,537.0
Non-Tax Revenue(Net Oil Rev to FED ACCT) 3,638.5 2,666.4 4084.4 2,511.8 2,695.4
Grants 0.0 0.0 0.0 0.0 0.0
Total expenditure + Net lending 9,646.3 8,625.5 4,123.4 4,767.4 5,140.8
Total Expenditure 9,646.3 8,625.5 4,123.4 4,767.4 5,140.8
Recurrent expenditure 2,400.3 3,215.0 3,158.4 3,610.5 3,878.0
o/w Wages and Salaries 1,810.7 1,861.1 1,839.0 2,077.4 1,874.7
Pension
overhead 589.6 525.8 377.8 472.6 618.4
Interest Payment 679.3 828.1 941.7 1,060.4 1,384.9
Domestic 632.9 772.4 880.4 996.8 1307.6
External 46.4 55.7 61.3 63.6 77.3
FCT & Others (Special Funds)
Capital/Investment Expenditure 744.4 912.9 587.6 818.4 918.8
Domestic 744.4 912.9 587.6 818.4 918.8
External 0.0 0.0 0.0 0.0 0.0
Transfers 5,822.3 4,497.7 377.4 338.5 344.0
Net Lending 0.0 0.0 0.0 0.0 0.0
Budget deficits/surplus (Excluding grants) - 1,000.2 - 1,153.5 - 835.6 - 1,557.8 - 2,193.3
Commitment basis - 1,000.2 - 1,153.5 - 835.6 - 1,557.8 - 2,193.3

Financing 1,000.1 1,153.5 835.6 1,557.8 2,193.3

External sources-net 0.0 0.0 0.0 0.0 0.0
Domestic-net 989.5 936.7 624.2 1,043.5 1,167.0
Banking system 744.4 706.7 0.0 615.955 676.513
Central Bank 0.0 0.0 0.0 615.955 676.513
Commercial Banks 744.4 706.7 0.0 0.0 0.0
Non Bank Public* 74.0 223.9 624.2 330 300
Privatisation Proceeds 0.0 0.0 0.0 0.0 0.0
Other 171.1 6.0 0.0 90.921 230.523
Excess Crude/Fed Govt Share from Stabil. Acct 195.9 6.596 -40
Statistical discrepency 75.1
Statistical discrepency
Adjustment 10.6 20.9 211.4 514.3 1026.3

Memorandum Items
Total Revenue as % of GDP at market prices 11.9 9.2 6.1 4.2 4.2
Domestic Revenue as % of GDP at market prices 11.9 9.2 6.1 4.2 4.2
Tax Revenue as % of GDP at market prices 6.9 5.9 1.5 1.6 1.5
Oil Revenue (Net)/GDP (%) 5.0 3.3 4.5 2.7 2.7
Total Expd & Lending as % of GDP at market prices 13.3 10.6 4.6 5.1 5.1
Overall Balance (commitment basis) as % of GDP -1.4 -1.4 -0.9 -1.7 -2.2
Wages and Salaries as % of Tax Revenue 36.2 38.7 55.9 64.7 63.6
Domestic Investment Expd./Domestic Revenue 14.9 19.0 42.4 55.2 59.8
Central Bank Financing/Previous Year's Tax Rev. 0.0 0.0 0.0 0.0 0.0
Nominal GDP Current market prices ` 72,599.6 81,010.0 90,137.0 94,145.0 101,598.5
Source: Federal Ministry of Finance Nigeria
*2015 Deficit financed domestically government deposit with the central bank and FGN Bond

90
Table 26: Nigeria – Monetary Survey (in billions of Naira)
2012 2013 2014 2015 2016

Net foreign assets 9,043.7 8,513.3 7,214.3 5,653.3 8,891.1

Foreign assets 9,403.0 9,140.8 8,361.4 7,218.3 11,033.0
Foerign liabilities 359.3 627.6 1,147.1 1,565.0 2,141.9

Net domestic assets 6,439.8 6,825.9 9,604.2 14,376.5 14,834.1

Domestic credit 12,697.8 15,064.3 11,673.3 14,073.5 16,540.5
Claims on government (net) -2,453.9 -1,468.8 -1,654.3 377.9 -236.7
Total claims on government 2,966.4 4,312.1 4,167.6 4,598.8 4,834.3
Treasury bills 865.9 2,566.3 1,922.1 2,547.2 3,065.8
Stocks and bonds 1,930.2 1,474.0 1,610.1 2,043.8 1,768.4
Ways and means advances 134.0 0.0 591.5 0.0 0.0
Overdrafts 0.0 0.0 0.0 0.0 0.0
Others 36.3 271.8 43.9 7.8 0.1
Government deposits 5,420.3 5,780.9 5,821.8 4,220.9 5,071.0
Claims on rest of economy 15,151.8 16,533.1 13,327.6 13,695.5 16,777.2
Claims on Public Sector(incl Loc & St. Gov) 0.0 23.6 25.6 25.6 82.0
Claims on private sector 15,151.8 16,509.5 13,302.0 13,669.9 16,695.2
Other items, net (assets +) -6,258.0 -8,238.3 -2,069.1 303.1 -1,706.4
15,483.5 15,339.2 16,818.5
Money Supply (M2+) 15,153.3 15,339.2 16,818.5 20,029.8 23,725.1
Money Supply (M2) 12,426.3 11,935.8 12,233.0 16,232.3 19,144.6
Money Supply (M1) 7,090.4 6,683.1 6,251.9 8,571.7 11,404.9
Currency with public 970.6 1,117.3 1,366.7 1,456.1 1,820.4
Demand deposits 6,119.8 5,565.8 4,885.3 7,115.6 9,584.5
Quasi money 8,062.9 8,656.1 10,566.6 11,458.1 12,320.2
Time and savings deposits 5,335.9 5,252.8 5,981.0 7,660.6 7,739.7
Foreign currency deposits 2,727.0 3,403.4 4,585.5 3,797.6 4,580.5
Check

Memorandum items:
M2+ growth (%) 16.7 1.2 9.6 19.1 18.4
M2 growth 12.8 -3.9 2.5 32.7 17.9
Net Claims on Govt. (NCG) (%) 393.9 -40.1 12.6 -122.8 -162.6
Net Foreign Assets(%) 26.7 -5.9 -15.3 -21.6 57.3
Net Domestic Assets (%) 10.2 6.0 40.7 49.7 3.2
Reserve money growth (%) 33.1 37.4 16.5 -2.0 -5.5
Currency/M2+ ratio 6.4 7.3 8.1 7.3 7.7
Velocity (GDP/broad money) 4.8 5.3 5.4 4.7 4.3
Money multiplier (M2+/RM)
Money Multiplier (M2+/RM) 4.1 3.0 2.8 3.4 4.3
Credit to Priva.Sector Gr.wth (%) 10.8 9.0 -19.4 2.8 22.1
Currency-to-deposits ratio 6.8 7.9 8.8 7.8 8.3
GDP at current market prices 72,599.63 81,009.96 90,136.99 94,144.96 101,598.48
Sources: Central Bank of Nigeria

91
Table 27: Nigeria - Analytical Balance of Payments (in millions of USD)
2012 2013 2014 2015 2016

Current Account 14,924.6 19,205.1 885.8 -15,438.6 2,722.0

Trade balance 36,926.3 42,517.5 20,992.4 -6,447.0 -536.0
Merchandise Exports(FOB) 94,322.3 97,818.2 82,586.1 45,887.7 34,703.9
Oil and Gas 91,274.3 90,574.7 76,515.3 42,443.4 32,029.0
Non-Oil 3,048.0 7,243.5 6,070.8 3,444.4 2,674.9
Merchandise Imports (FOB) -57,396.0 -55,300.8 -61,593.7 -52,334.8 -35,240.0
Oil -19,022.2 -15,195.6 -13,806.0 -8,494.9 -8,950.4
Non-Oil -38,373.8 -40,105.2 -47,787.7 -43,839.8 -26,289.5
Unrecorded(TPAdj) 0.0 0.0 0.0 0.0 0.0
Services (Net) -21,715.9 -19,565.8 -22,862.5 -16,452.7 -8,014.7
Income (Net) -22,264.9 -25,729.8 -19,162.1 -12,707.8 -8,616.5
Current Transfers(Net) 21,979.1 21,983.2 21,918.0 20,168.8 19,889.2
Capital Account 0.0 0.0 0.0 0.0 0.0
Financial Account (Net) -1,288.5 6,760.7 3,833.8 -6,881.4 670.2
Direct Investment abroad
Direct Investment (net) 5,584.8 4,371.0 3,079.5 1,629.0 3,143.7
Portfolio Investment (net) 15,114.3 10,405.6 1,843.6 858.7 1,710.3
Other Investment (net) -21,987.6 -8,015.8 -1,089.4 -9,369.1 -4,183.8
Change in Reserve
Errors and Omissions -5,039.1 -26,954.0 -13,192.8 16,466.6 -4,373.0

Overall Balance 8,597.1 -988.1 -8,473.2 -5,853.5 -980.8

Financing -11,188.0 988.1 8,452.5 5,853.5 980.8

Change in Reserves -11,188.0 988.1 8,452.5 5,853.5 980.8
Memorandum Items
Average exchange rate (N/$) 157.3 159.3 197.0 197.0 305.2
End of Period exchange rate (N/$) 157.5 157.3 169.7 197.0 305.0
Stock of External Reserves (in $ millions) 32,639.8 43,830.4 34,241.5 28,284.8 26,990.6
Months of Import cover /1 6.1 8.5 6.0 5.8 8.2
Import of goods (cif)* 64,283.6 61,936.8 68,985.0 58,614.9 39,468.7
Import of goods /GDP (%) 12.4 10.9 13.5 11.0 10.6
Export of goods 94,322.3 97,818.2 82,586.1 45,887.7 34,703.9
Export/GDP (%) 20.4 19.2 18.0 9.6 10.4
Current account balance/GDP (%) 3.2 3.8 0.2 -3.2 0.8
Capital and Financial account / GDP (%) -2.7 1.5 2.7 -0.2 0.5
Overall balance/GDP (%) 1.9 -0.2 -1.9 -1.2 -0.3
Nominal GDP (in millions of USD) 461,682.9 508,664.8 457,571.4 477,917.5 332,869.7
Source: Central Bank of Nigeria
*value before Dec 2012 was Import (FOB)

92
Table 28: Sierra Leone – Output and Prices (in millions of leones)
2012 2013 2014 2015 2016

GDP at Constant Price 8,464,552.0 10,218,569.9 10,684,900.5 8,494,957.0 9,010,347.0

Constant GDP Growth Rate 15.6 20.7 4.6 - 20.5 6.1
1. Agriculture, Forestry and Fishing 3,979,557.4 4,160,741.5 4,194,180.9 4,342,386.0 4,509,079.0
1.1 Crops 2,808,057.4 2,952,173.9 2,973,720.0 3,096,880.0 3,232,279.0
1.2 Livestock 167,487.1 174,944.5 176,265.3 179,633.0 184,805.0
1.3 Forestry 444,277.9 459,146.6 463,501.7 473,083.0 483,339.0
1.4 Fishery 559,734.9 574,476.5 580,693.9 592,790.0 608,656.0
2. Industry 1,417,753.2 2,799,686.9 3,178,664.7 719,976.0 908,487.0
2.1 Mining and Quarrying 1,026,050.1 2,401,504.0 2,805,105.0 335,207.0 502,545.0
2.2 Manufacturing and Handicrafts 182,675.6 187,149.8 173,780.9 174,464.0 182,452.0
2.3 Electricity and Water Supply 44,911.9 36,729.0 38,770.0 41,045.0 42,867.0
2.4 Construction 164,115.6 174,304.2 161,008.9 169,260.0 180,623.0
3. Services 2,756,803.9 2,952,248.5 3,006,021.8 3,115,809.0 3,260,973.0
3.1 Trade and Tourism 657,324.3 745,405.0 710,815.0 705,002.0 733,154.0
3.2 Transport, Storage and Communication 610,044.7 639,200.0 621,618.0 632,143.0 665,338.0
3.3 Finance, Insurance and Real Estate 333,934.2 344,489.0 349,394.0 362,530.0 375,662.0
3.4 Administration of Public Services 345,522.8 368,802.0 430,216.0 474,238.0 502,834.0
3.5 Other Services 261,112.3 277,421.0 288,169.0 301,423.0 311,146.0
3.6 Education 234,282.9 250,973.0 259,268.0 268,497.0 281,111.0
3.7 Health 210,489.3 216,342.6 230,505.0 250,356.0 264,542.0
3.8 NPISH 104,093.4 109,615.8 116,036.8 121,620.0 127,186.0
4. FISIM 102,350.8 104,547.0 108,011.0 110,324.0 113,703.0
5. Total Value Added at Basic Prices (1+2+3-4) 8,051,763.7 9,808,129.9 10,270,856.5 8,067,847.0 8,564,836.0
6.Taxes less Subsidies on Products 387,345.9 410,440.0 414,044.0 427,110.0 445,511.0
7. Gross Domestic Product at Market Prices (5+6) 8,439,109.6 10,218,569.9 10,684,900.5 8,494,957.0 9,010,347.0

GDP at Current Price (in millions Leone) 16,460,656.1 21,317,122.2 22,690,470.4 21,582,035.0 23,847,694.0
1. Agriculture, Forestry and Fishing 8,355,507.7 10,228,785.5 11,751,396.4 12,681,573.0 14,023,240.0
1.1 Crops 5,020,505.7 6,306,111.6 6,999,008.0 7,713,612.0 8,581,368.0
1.2 Livestock 463,642.5 509,855.1 517,948.0 524,236.0 573,617.0
1.3 Forestry 1,253,046.5 1,460,614.4 1,653,393.4 1,782,622.0 1,918,098.0
1.4 Fishery 1,618,313.0 1,952,204.3 2,581,047.0 2,661,103.0 2,950,157.0
2. Industry 2,400,415.3 4,525,363.5 3,542,733.0 954,548.0 1,351,676.0
2.1 Mining and Quarrying 1,831,855.6 3,922,351.0 2,957,664.0 312,744.0 585,457.0
2.2 Manufacturing and Handicrafts 333,221.3 349,866.7 347,739.0 374,216.0 467,422.0
2.3 Electricity and Water Supply 37,805.0 43,890.5 42,001.0 46,138.0 52,796.0
2.4 Construction 197,533.3 209,255.3 195,329.0 221,450.0 246,001.0
3. Services 5,321,825.3 6,070,833.6 6,768,625.0 7,323,038.0 7,807,913.0
3.1 Trade and Tourism 1,454,407.8 1,805,401.0 1,888,985.0 2,039,783.0 2,284,225.0
3.2 Transport, Storage and Communication 733,835.5 804,166.6 855,262.0 885,296.0 931,784.0
3.3 Finance, Insurance and Real Estate 684,079.4 769,540.0 915,121.0 898,153.0 991,873.0
3.4 Administration of Public Services 768,131.8 900,677.0 1,137,737.0 1,366,646.0 1,550,488.0
3.5 Other Services 580,478.9 653,800.0 726,064.0 832,619.0 626,870.0
3.6 Education 350,979.1 379,766.0 422,719.0 443,291.0 468,758.0
3.7 Health 538,252.2 564,593.6 617,082.0 639,309.0 695,801.0
3.8 NPISH 211,660.4 192,889.5 205,655.0 217,941.0 258,114.0
4. FISIM 224,581.5 252,005.9 281,933.0 313,801.0 352,420.0
5. Total Value Added at Basic Prices (1+2+3-4) 15,853,166.7 20,572,976.7 21,780,821.4 20,645,358.0 22,830,409.0
6.Taxes less Subsidies on Products 607,489.4 744,145.5 909,649.0 936,677.0 1,017,285.0
7. Gross Domestic Product at Current Price (5+6) 16,460,656.1 21,317,122.2 22,690,470.4 21,582,035.0 23,847,694.0
Source: SSL, IMF and BSL staff estimates

93
Table 29: Sierra Leone - Government Fiscal Operations (in millions of leones)
2012 2013 2014 2015 2016

Total Revenue and Grants 2,332,680.0 2,912,451.0 3,185,676.0 3,494,712.0 3,615,441.0

Domestic Revenue 1,869,205.0 2,364,851.0 2,226,200.0 2,330,159.0 2,888,732.0
Tax Revenue 1,549,679.0 1,864,628.0 1,862,583.0 2,040,550.0 2,505,355.0
Tax on Income 790,607.0 931,707.0 895,672.0 901,691.0 1,269,208.0
Internal levies & tax on goods & services 417,643.0 441,137.0 459,095.0 593,048.0 666,090.0
Import tax 295,060.0 268,713.0 285,040.0 329,366.0 381,633.0
Other tax revenue 46,369.0 223,071.0 222,776.0 216,445.0 188,424.0
Non-tax revenue 319,526.0 500,223.0 363,617.0 289,609.0 383,377.0
Income from enterprises & sales of assets 48,296.0 105,961.0 58,082.0 50,415.0 84,181.0
Other receipts: royalties, licences, road user fees 271,230.0 394,262.0 305,535.0 239,194.0 299,196.0
Grants 463,475.0 547,600.0 959,476.0 1,164,553.0 726,709.0

Total Expenditure and Net Lending 3,177,527.0 3,233,062.0 3,935,404.0 4,419,106.0 5,440,380.0
Total Expenditure 3,177,527.0 3,331,660.0 3,923,254.0 4,419,106.0 5,591,782.0
Total domestic financed expenditure 2,484,494.0 2,601,879.0 3,288,374.0 3,456,064.0 4,558,231.0
Current Expenditure 2,020,312.0 2,185,127.0 2,718,468.0 2,803,337.0 3,552,983.0
Wages & Salaries 935,912.0 1,060,021.0 1,445,695.0 1,587,006.0 1,817,257.0
Interest on gov't debt 282,511.0 301,158.0 221,359.0 174,571.0 201,805.0
Domestic 253,531.0 266,272.0 181,228.0 134,847.0 140,753.0
External 28,980.0 34,886.0 40,131.0 39,724.0 61,052.0
Others: goods, services and transfers etc 801,889.0 823,948.0 1,051,414.0 1,041,760.0 1,533,921.0
o/w goods & services 692,722.0 1,138,550.0
Capital/Investment Expenditure 1,157,215.0 1,146,533.0 1,204,786.0 1,615,769.0 2,038,799.0
Domestically Financed 464,182.0 416,752.0 569,906.0 652,727.0 1,005,248.0
Externall Financed 693,033.0 729,781.0 634,880.0 963,042.0 1,033,551.0
Net Lending 0.0 -98,598.0 12,150.0 0.0 -151,402.0

Budget Deficit (incl. Grants) Commitment basis (844,847.0) (320,611.0) (749,728.0) (924,394.0) (1,824,939.0)

Budget Deficit (excl. Grants) Commitment basis (1,308,322.0) (868,211.0) (1,709,204.0) (2,088,947.0) (2,551,648.0)
Primary Domestic Balance (615,289.0) (237,028.0) (1,062,174.0) (1,125,905.0) (1,669,499.0)

Financing 844,847.0 320,611.0 749,728.0 924,394.0 1,824,939.0

Domestic -77,560.0 293,378.0 495,226.0 301,490.4 1,091,730.6

Banking system -114,079.0 386,145.0 597,790.0 321,398.4 993,424.6
Central Bank -440,022.0 26,495.0 151,129.0 -40,742.6 674,950
Commercial Banks 325,943.0 359,650.0 446,661.0 362,141.0 318,475
Non-bank Borrowing 125,078.0 (68,323.0) (68,018.0) 18,851.0 137,863.0
Change in Domestic Arrears (88,559.0) (24,444.0) (47,948.0) (38,759.0) (39,557.0)
External Sources 523,066.0 294,108.0 265,748.0 337,821.0 375,628.0
Drawings/Borrowing 600,643.0 379,927.0 361,601.0 454,580.0 508,187.0
Amortisation Due (77,577.0) (85,819.0) (95,853.0) (116,759.0) (132,559.0)
Float/unaccounted 399,341.0 -266,875.0 -11,246.0 285,082.6 357,580.4
Memorandum Items
Total Revenue and Grants/GDP (%) 14.2 13.7 14.0 16.2 15.2
Total Dom Revenue/GDP (%) 11.4 11.1 9.8 10.8 12.1
Tax revenue/GDP (%) 9.4 8.7 8.2 9.5 10.5
Non-tax revenue/GDP (%) 1.9 2.3 1.6 1.3 1.6
Grants/GDP (%) 2.8 2.6 4.2 5.4 3.0
Total expenditure/GDP (%) 19.3 15.6 17.3 20.5 23.4
Total expenditure + Net lending/GDP (%) 19.3 15.2 17.3 20.5 22.8
Recurrent Expenditure/GDP (%) 12.3 10.3 12.0 13.0 14.9
Capital Expenditure/GDP (%) 7.0 5.4 5.3 7.5 8.5
Primary balance / GDP (%) 3.7 1.1 4.7 5.2 7.0
Overall deficit(comm. basis excl. grant) / GDP (%) 7.9 4.1 7.5 9.7 10.7
Overall deficit(comm. basis incl. grant) / GDP (%) 5.1 1.5 3.3 4.3 7.7
Wages and Salaries/Tax revenue (%) 60.4 56.8 77.6 77.8 72.5
Domestic investment expenditure/Tax revenue (%) 30.0 22.4 30.6 32.0 40.1
Central Bank financing/Previous yr.'s tax revenue -37.7 1.7 8.1 -2.2 33.1
Nominal GDP Current market prices (in millions of Leones) 16,460,656 21,317,122 22,690,470 21,582,035.0 23,847,695.0
Source: Ministry of Finance and Economoic Development

94
Table 30: Sierra Leone - Monetary Survey (in millions of leones)
2012 2013 2014 2015 2016

Net Foreign Assets 2,485,030.0 2,832,322.0 3,253,757.0 3,219,098.0 3,405,246.0

Foreign Assets 3,021,579.0 3,407,039.0 4,081,176.5 4,657,291.0 5,642,471.0
Foregn Liabilities (536,549.0) (574,717.0) (827,419.5) (1,438,193.0) (2,237,225.0)
Net Domestic Assets 1,138,207.0 1,396,293.0 1,675,342.1 2,268,772.0 2,987,745.0
Domestic Credit 2,505,679.0 2,878,758.0 3,747,409.4 4,410,912.4 5,436,882.0
Claims on Government (Net) 1,365,692.0 1,670,741.0 2,449,504.0 3,098,443.4 3,471,810.0
Total Claims on Government 1,366,279.0 1,671,208.0 2,449,961.0 3,099,927.0 3,472,280.0
Treasury Bills 818,064.0 1,236,505.0 1,620,827.0 1,965,766.0 2,451,815.0
Stocks and Bonds 20,860.0 7,346.0 8,241.0 9,185.0 67,945.0
Ways and Means Advances 48,117.0 1,285.0 39,058.0 63,406.0 111,587.0
5-Year Bonds (Recapitalization) 264,430.0 273,811.0 280,000.0 280,000.0 280,000.0
GOSL/IMF BUDGET FINANCING 181,712.0 476,774.0 760,820.0
BSL Holdings of 3year Medium Term Bonds 77,516.0 74,541.0 159,318.0 159,318.0 159,318.0
BSL Holdings of 10year Bonds (NEW) 71,250.0 63,750.0 56,250.0
Others (Loans & Advances) 55,457.0 76,981.0 89,555.0 81,728.0 80,113.0
Government Deposits 587.0 467.0 457.0 1,483.6 470.0
Claims on Public Enterprises 191,993.0 200,060.0 199,242.0 181,798.0 162,801.0
Claims on Private Sector 947,994.0 1,007,957.0 1,098,663.4 1,130,671.0 1,306,703.0
Other Items, Net (Assets +) (1,367,472.0) (1,482,465.0) (2,072,067.3) (2,142,140.4) (2,449,137.0)

Broad Money (M2) 3,623,237.0 4,228,615.0 4,929,099.0 5,487,870.0 6,392,991.0

Reserve Money 1,018,926.0 1,199,516.0 1,561,595.0 1,723,636.0 2,145,982.0
Narrow Money 1,407,437.0 1,557,221.0 2,051,630.0 2,496,971.0 2,673,393.0
Currency with Public 790,138.0 781,166.0 997,545.0 1,176,286.0 1,265,304.0
Demand Deposits 617,299.0 776,055.0 1,054,085.0 1,320,685.0 1,408,089.0
Quasi Money 2,215,800.0 2,671,394.0 2,877,469.0 2,990,899.0 3,719,598.0
Time and Savings Deposits (DMBs) 908,365.0 1,080,172.0 1,233,492.0 1,267,438.0 1,332,873.0
Foreign Currency Deposits (DMBs) 1,029,056.0 1,084,478.0 1,064,615.0 1,101,352.0 1,721,025.0
Other Deposits 276,474.0 504,769.0 577,410.0 622,063.0 665,647.0
Time Savings & Foreign Currency Deposits (BSL) 1,905.0 1,975.0 1,952.0 46.0 53.0
Memorandum Items
Broad money (12 month change in %) 22.5 16.7 16.6 11.3 16.5
Net foreign assets growth 21.0 14.0 14.9 (1.1) 5.8
Net domestic assets growth 25.7 22.7 20.0 35.4 31.7
Domestic Credit Growth 12.0 14.9 30.2 17.7 23.3
Deposits/Broad Money (in %) 20.9 21.4 24.9 26.8 25.7
Reserve money (12 month change in %) 18.5 17.7 30.2 10.4 24.5
Ratio (Currency/Broad money) 21.8 18.5 20.2 21.4 19.8
Credit to Private Sector (% of GDP) 5.8 4.7 4.8 5.2 5.5
Velocity (GDP/broad money) 4.5 5.0 4.6 3.9 3.7
Money multiplier (M2+/RM) 3.6 3.5 3.2 3.2 3.0
Currency-to-deposit ratio (%) 27.9 22.7 25.4 27.3 24.7
GDP at market prices 16,460,656.1 21,317,122.2 22,690,470.4 21,582,035.0 23,847,695.0
Source: Central Bank

95
Table 31: Sierra Leone - Analytical Balance of Payments (in millions of USD)
2012 2013 2014 2015 2016

Current Account (1,046.4) (859.2) (911.10) (741.80) (428.60)

Trade Balance (914.2) (27.7) (339.30) (765.20) (341.80)
Merchandise Exports (FOB) 1,046.4 1,542.6 1,304.4 581.4 669.9
Non-Oil 1,046.4 1542.60 1304.40 581.40 669.90
Total Exports to ECOWAS Countries 60.1 77.60 38.75 66.30 2,156

Merchandise Import (FOB)*** (1,960.6) (1,570.3) (1,643.7) (1,346.6) (1,011.7)

Oil (334.4) -392.20 (464.5) (281.0) (204.6)
Non-Oil (1,626.2) -1178.10 (1,179.2) (1,065.6) (807.1)

Non factor Services (net) (349.2) (476.3) (1,026.6) (340.7) (302.9)

Non factor Services (Credit) 182.0 223.20 205.90 176.00 194.20
Non factor Services (Debit) (531.2) -699.50 -1232.50 -516.70 -497.10

Factors services(net) (182.1) (557.3) (376.0) (112.0) (119.7)

Factors services(Credit) 11.1 11.10 11.80 9.40 9.90
Factors services(Debit) (193.2) -568.40 -387.80 -121.40 -129.60

Current Transferts (Net) 399.1 202.1 830.8 476.1 335.8

Current Transferts officials 258.9 53.50 704.70 351.10 214.00
Current Transferts Private 162.8 175.90 154.1 146.80 149.40
Current Transfer (debit) (22.6) -27.30 (28.0) (21.8) (27.6)

Capital Account 123.4 99.3 82.2 134.5 68.6

Capital Transfers (credit) 123.4 99.30 82.20 134.50 68.60

Financial Account 985.7 467.7 541.8 364.1 378.2

Direct Investment Abroad 0.0 0.00 0.00 0.00 0.00
Direct Investment in Reporting Economy 558.4 361.30 385.40 264.70 298.40
Portfolio Investment (Net) 74.4 8.30 0.00 0.00 0.00
Other Investment (Net) 352.9 98.10 156.40 99.4 79.8

Errors and Omissions (27.3) 338.8 326.1 138.3 (87.0)

Overall Balance 35.4 46.6 39.0 (104.9) (68.8)

Financing (35.4) (46.6) (39.0) 104.9 68.8

Changes in Foreign Reserves (38.7) -53.20 (80.0) (26.8) 0.00
Utilisation of IMF Credit 3.3 6.60 41.0 100.6 67.2
Memorandum Items
Imports of Goods & Services(CIF) (2,195.9) (1,758.7) (1,840.9) (1,508.2) (1,133.1)
Average Exchange Rate (Local Currency) 4,344.0 4,332.5 4,520.8 5,077.4 6,290.0
End of Period Exchange Rate (C/S) 4,334.1 4,357.4 4,953.3 5,639.1 7,195.4
Current Account Balance/GDP (%) (27.6) (17.5) (18.2) (17.5) (11.3)
Stock of External Reserves 420.6 474.60 553.51 580.26 503.79
Month of Import Cover 2.3 3.2 3.6 4.6 5.3
Imports of goods (CIF) (2,153.8) (2,138.7) (2,876.2) (1,863.3) (1,508.8)
Imports of goods as % of GDP (57.9) (35.7) (32.7) (31.7) (26.7)
Exports of goods as % of GDP 27.6 31.4 26.0 13.7 17.7
Trade Balance as % of GDP (24.1) (0.6) (6.8) (18.0) (9.0)
Current A/c Def.(incl. offic. Trasnfers (27.6) (17.5) (18.2) (17.5) (11.3)
Capital account as % of GDP 3.3 2.0 1.6 3.2 1.8
Financial Account as % of GDP 26.0 9.5 10.8 8.6 10.0
Overall balance as % of GDP 0.9 0.95 0.8 (2.5) (1.8)
Nominal GDP (millions of Leones) 16,460,656 21,317,122.20 22,690,470.44 21,582,035.00 23,847,695.00
Nominal GDP market prices (millions of USD) 3,789.3 4,920.3 5,019.1 4,250.6 3,791.4
Source: Central Bank

96
Table 32: Size of the WAMZ Banking Sector
Country Assets (Million of USD) Deposit (Million of USD) Credit (Million of USD)
2014 2015 2016 2014 2015 2016 2014 2015 2016
The Gambia 626.40 735.46 739.77 374.30 415.84 420.55 120.40 124.88 101.23
Ghana 16,075.30 16,701.40 19,676.21 10,133.70 10,870.17 12,544.68 7,532.30 7,932.12 8,498.91
Guinea 1,927.90 2,014.20 1,921.28 1,460.70 1,534.38 1,450.27 813.30 899.73 820.38
Liberia 892.80 887.30 869.51 573.10 610.79 538.62 328.50 393.41 392.05
Nigeria 155,226.70 136,874.10 99,412.41 106,484.30 88,641.05 60,985.07 69,955.10 67,659.46 53,940.89
Sierra Leone 972.60 937.70 880.17 796.90 760.23 705.46 272.20 237.97 171.43
Total WAMZ 175,721.70 158,150.16 123,499.35 119,823.00 102,832.46 76,644.65 79,021.80 77,247.57 63,924.89

Table 33: Selected Financial Soundness Indicators of the Banking Industry

Indicators (In Percentage) Gambia Ghana Guinea Liberia Nigeria Sierra Leone
2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016 2014 2015 2016
1. Asset Based Indicators
NPL to total gross loans 7.00 6.50 9.30 10.98 14.67 17.00 4.99 4.70 7.37 18.70 22.40 36.90 2.80 4.90 12.80 33.44 31.73 22.65
Liquid Assets (core) to total assets 85.00 93.40 101.30 43.29 27.25 45.50 54.46 43.48 47.46 32.00 25.30 31.80 11.40 16.30 16.30 10.31 9.40 8.39
Liquid Assets (core) to short-term liabilities 80.00 88.40 97.50 50.53 53.80 97.05 73.37 57.50 63.52 49.00 35.60 37.50 16.70 25.00 24.50 11.72 10.72 9.50
Return on Assets (ROA) 11.00 2.10 2.00 6.44 4.53 3.82 2.56 2.26 2.17 0.10 (2.87) 1.45 3.13 2.34 1.48 2.66 3.24 2.87
2. Capital Based Indicators
Regulatory capital to risk-weighted assets 30.00 57.60 68.00 17.94 17.81 18.00 18.32 16.45 34.40 20.30 20.90 27.70 17.20 17.66 15.00 30.21 33.98 30.73
NPLs net of net of provision to capital (3.00) (2.10) (2.40) 20.92 27.44 30.00 3.00 2.00 7.00 58.00 62.30 12.30 4.10 7.40 38.40 41.77 31.87 24.77
Return on equity (ROE) 76.00 13.80 12.20 32.31 21.41 17.26 15.37 22.30 20.63 1.00 (26.02) 2.58 21.20 19.78 12.56 14.90 18.29 22.32
3. Income and Expense Based Indicators
Interest margin to gross income 43.00 45.50 51.50 12.17 13.78 22.92 64.84 19.63 37.21 44.00 7.57 48.50 51.20 65.00 50.00 35.65 33.84 46.45
Non-interest expenses to gross income 54.00 57.20 58.70 35.82 41.33 65.07 62.10 62.10 31.80 67.60 67.60 81.20 56.90 64.70 63.80 63.63 63.86 58.51

97
 WEST AFRICAN MONETARY INSTITUTE

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2016

98
West African Monetary Institute

Annual Report

For the year ended 31 December 2016

Contents Page(s)

General information 1

Report of the Management Board 2-3

Independent auditor‟s report 4-6

Financial statements

Statement of financial position 7

Statement of comprehensive income 8

Statement of changes in equity 9

Statement of cash flows 10

Notes 11 - 30
West African Monetary Institute

Annual Report

For the year ended 31 December 2016

GENERAL INFORMATION

Management Board Abwaku Englama Director General

Tei Kitcher Director, Multilateral Surveillance & Trade
Abdoulaye Barry Director, Financial Integration
Mohammed Sissoho Director, Research & Statistics (resigned 30 June
2016)
Adolphus Forkpa Director, Internal Audit (resigned 10 October 2016)
Linda Omolehinwa Director, Corporate Services
Sullay Mannah Director, Legal
Ismaila Jarju Director, Research & Statistics (appointed 1 July
2016)
I.Voteh Cheyee Director, Internal Audit (appointed 1 November
2016)

Principal place Gulf House

of business Tetteh Quarshie Interchange
Private Mail Bag CT 75
Accra, Ghana

Auditor PricewaterhouseCoopers
Chartered Accountants
No. 12 Airport City
Una Home, 3rd Floor
PMB CT 42
Cantonments, Accra

1
West African Monetary Institute

Annual Report

For the year ended 31 December 2016

REPORT OF THE MANAGEMENT BOARD TO THE CONVERGENCE COUNCIL

The West African Monetary Institute (WAMI) management board submit their report together
with the audited financial statements of the Institute for the year ended 31 December 2016.

Statement of management board’s responsibilities

The management board is responsible for the preparation of financial statements for each
financial year, which give a true and fair view of the state of affairs of the Institute and of the
profit or loss and cash flows for that period. In preparing these financial statements, the
management board has selected suitable accounting policies and then applied them
consistently, made judgements and estimates that are reasonable and prudent and followed
International Financial Reporting Standards.

The management board is responsible for ensuring that the Institute keeps proper accounting
records that disclose with reasonable accuracy at any time the financial position of the
Institute. The management board is also responsible for safeguarding the assets of the
Institute and taking reasonable steps for the prevention and detection of fraud and other
irregularities.

The Management Board has made an assessment of the Institute to continue as a going
concern and has no reason to believe the Institute will not be a going concern.

Principal activities
WAMI was established under the Agreement of the West African Monetary Zone (WAMZ) to
perform its functions and carry out its activities in accordance with the WAMZ Agreement and
the Statutes of the WAMI.

At the 44th Ordinary Session of the ECOWAS Authority of Heads of States and Governments
held in Yamoussoukro, Cote d‟Ivoire in March 2014, a single track approach to monetary
union in 2020 was adopted. WAMI, and other regional institutions are to continue to
exist with redefined roles under the Revised Single Currency (2020) Roadmap.

The functions of WAMI include:

1. Financial Integration, aimed at facilitating:

a. Adoption of regional accounting and financial reporting framework
b. Establishment of Deposit Insurance Scheme
c. Adoption of Financial Stability framework
d. Development of Cross-Border Banking Supervision
e. Capital market Integration

2. WAMZ Payment System development

3. Multilateral surveillance of WAMZ Member States‟ economies

4. Harmonization of statistical standards and practices in the WAMZ

5. Monitoring and evaluation of implementation of ECOWAS trade related protocols in the

WAMZ Member States

6. Sensitization on the integration program

2
West African Monetary Institute

Annual Report

For the year ended 31 December 2016

7. Conduct research/studies assigned by relevant authorities as well as emanating from

surveillance activities

3
West African Monetary Institute

Annual Report

For the year ended 31 December 2016

REPORT OF THE MANAGEMENT BOARD TO THE CONVERGENCE COUNCIL

(continued)

Financial results

The financial results for the year ended 31 December 2016 are set out as part of the financial
statements.

Approval of the financial statements

The financial statements of the Institute, as indicated above, were approved by the
management board on................................... and are signed on their behalf by:

By Order of the Management Board

Name of Director: Name of Director:

Signature: Signature:

Date: Date:

4
INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF THE CONVERGENCE COUNCIL

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

Our opinion

In our opinion, the accompanying financial statements give a true and fair view of the financial
position of West African Monetary Institute as at 31 December 2016, and of its financial
performance and its cash flows for the year then ended in accordance with International Financial
Reporting Standards.

What we have audited

We have audited the financial statements of West African Monetary Institute (the “Institute”) for
the year ended 31 December 2016.

The financial statements on pages 7 to 30 comprise:

 the statement of financial position as at 31 December 2016;

 the statement of comprehensive income for the year then ended;
 the statement of changes in equity for the year then ended;
 the statement of cash flows for the year then ended; and
 the notes to the financial statements, which include a summary of significant accounting
policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor‟s responsibilities for the
audit of the financial statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.

Independence

We are independent of the Institute in accordance with the International Ethics Standards Board
for Accountants‟ Code of Ethics for Professional Accountants (IESBA Code). We have fulfilled
our other ethical responsibilities in accordance with the IESBA Code.

Other information

The management board is responsible for the other information. The other information
comprises Report of the Management Board but does not include the financial statements and
our auditor‟s report thereon.

Our opinion on the financial statements does not cover the other information and we do not
express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise
appears to be materially misstated.

If, based on the work we have performed on the other information, we conclude that there is a
material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.

4
INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF THE CONVERGENCE COUNCIL (continued)

Responsibilities of the management board for the financial statements

The management board is responsible for the preparation of financial statements that give a true
and fair view in accordance with International Financial Reporting Standards, and for such internal
control as the management board determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the management board is responsible for assessing the
Institute‟s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless the management board either
intend to liquidate the Institute or to cease operations, or have no realistic alternative but to do so.

The management board is responsible for overseeing the financial reporting process.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor‟s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with ISAs will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control;

Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the internal control;

Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates and related disclosures made by the management board;

Conclude on the appropriateness of the management boards‟ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor‟s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor‟s report. However, future events or
conditions may cause the Institute to cease to continue as a going concern; and

Evaluate the overall presentation, structure and content of the financial statements, including
the disclosures, and whether the financial statements represent the underlying transactions
and events in a manner that achieves fair presentation.

5
INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF THE CONVERGENCE COUNCIL (continued)

Auditor’s responsibilities for the audit of the financial statements (continued)

We communicate with the management board regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies
in internal control that we identify during our audit.

We also provide the management board with a statement that we have complied with relevant
ethical requirements regarding independence, and have communicated with them all
relationships and other matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.

The engagement partner on the audit resulting in this independent auditor‟s report is Oseini
Amui (ICAG/P/1139)

PricewaterhouseCoopers (ICAG/F/201/028)
Chartered Accountants
Accra, Ghana
Date

6
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

STATEMENT OF FINANCIAL POSITION

(All amounts are in US Dollars)

Assets
Note 2016 2015
Non-current assets
Property and equipment 5 237,238 288,144
Intangible assets 6 13,827 18,026

251,065 306,170

Current assets
Investment securities 7 64,136,050 64,589,396
Accounts receivable 8 198,520 144,106
Cash and bank balances 9 117,852 364,965

64,452,422 65,098,467

Total assets 64,703,487 65,404,637

Members' fund and liabilities

Members' fund
West African Central Bank Capital 10 28,909,842 28,913,266
Stabilisation and Cooperation Fund 11 33,676,942 33,643,320
Accumulated fund 1,733,459 2,412,299

Total members' fund 64,320,243 64,968,885

Current liabilities
Accounts payable 12 383,244 435,752

Total liabilities 383,244 435,752

Total liabilities and members' fund 64,703,487 65,404,637

The notes on page 11 to 30 are an integral part of these financial statements.

The financial statements on pages 7 to 30 were approved by the management board on

……............................... 2017 and signed on its behalf by:

Name of Director: Name of Director:

Signature: Signature:

7
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

STATEMENT OF COMPREHENSIVE INCOME

(All amounts are in US Dollars)

Note 2016 2015

Membership subscription 13 3,490,873 3,725,995

Other income 14 109,325 179,543
Finance income 15 43,935 55,558

Total income 3,644,133 3,961,096

Work programmes 16 (789,038) (508,943)

Administrative expenses 17 (3,533,935) (3,129,069)

Programmes and administrative

expenses (4,322,973) (3,638,012)

(Deficit)/surplus for the year from programme

activities (678,840) 323,084

Interest income on members capital contribution 18 63,622 63,211

(Deficit)/surplus for the year (615,218) 386,295

Other comprehensive income - -

(Deficit)/surplus transferred to accumulated fund (615,218) 386,295

The notes on page 11 to 30 are an integral part of these financial statements.

8
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

STATEMENT OF CHANGES IN EQUITY

(All amounts are in US Dollars)

West African Stabilisation

Central and
Bank Coopera-
Capital tion fund Accumu-
(WACB) (SCF) lated fund Total
Year ended 31 December 2016
At 1 January 2016 28,913,266 33,643,320 2,412,299 64,968,885

Comprehensive income for

the year:
Deficit for the year - - (615,218) (615,218)

Total comprehensive income - - (615,218) (615,218

Transactions with members

Transfer of interest to WACB
capital and SCF (Note 18) 29,406 34,216 (63,622) -
Release to member subscription
(Note 10&11) (32,830) (594) - (33,424)
Total transactions with
members (3,424) 33,622 (63,622) (33,424)

At 31 December 2016 28,909,842 33,676,942 1,733,459 64,320,243

Year ended 31 December 2015

At 1 January 2015 28,884,051 33,609,324 2,089,215 64,582,590

Comprehensive income for the

year:
Surplus for the year - - 386,295 386,295

Total comprehensive income - - 386,295 386,295

Transactions with members

Transfer of interest to WACB
capital and SCF (Note 18) 29,215 33,996 (63,211) -
Total transactions with
members 29,215 33,996 (63,211) -

At 31 December 2015 28,913,266 33,643,320 2,412,299 64,968,885

The notes on page 11 to 30 are an integral part of these financial statements.

9
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

STATEMENT OF CASH FLOWS

(All amounts are in US Dollars)

Note 2016 2015

Net cash (used in)/generated from operating

activities 19 (730,149) 193,830

Cash flows from investing activities

Purchase of property and equipment 5 (55,440) (107,802)
Purchase of intangible assets 6 (6,244) (16,365)
Proceeds from sale of property and equipment 5 17,241 1,000
Interest received on programme funds with banks 15 43,935 55,558

Net cash used in investing activities (508) (67,609)

Cash flows from financing activities

Interest on members capital contribution 18 63,622 63,211
Interest released to member subscription 13 (33,424) -

Net cash generated from financing activities 30,198 63,211

(Decrease)/increase in cash and cash equivalents (700,459) 189,432

Analysis of changes in cash and cash equivalents

during the year
At 1 January 20 64,954,361 64,764,929
(Decrease)/increase in cash and cash equivalents (700,459) 189,432

At 31 December 20 64,253,902 64,954,361

The notes on page 11 to 30 are an integral part of these financial statements.

10
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES

1. General information

West African Monetary Institute (WAMI) was established under the Agreement of the West
African Monetary Zone (WAMZ) to perform its functions and carry out its activities in
accordance with the WAMZ Agreement and the Statutes of the WAMI. The registered address
of the Institute is Gulf House, Tetteh Quashie Interchange Accra.

2. Summary of significant accounting policies

The principal accounting policies adopted in the preparation of these financial statements are
set out below. These policies have been consistently applied to all years presented, unless
otherwise stated:

2.1. Basis of preparation

The financial statements have been prepared in accordance with International Financial
Reporting Standards (IFRS). The financial statements have been prepared under the
measurement basis applied in the historical cost convention unless otherwise stated in the
accounting policies below.

The preparation of financial statements in conformity with IFRS requires the use of certain
critical accounting estimates. It also requires management to exercise its judgment in the
process of applying the Institute‟s accounting policies. The areas involving a higher degree of
judgment or complexity, or areas where assumptions and estimates are significant to the
financial statements are disclosed in Note 3.

2.1.1 Changes in accounting policy and disclosures

(a) New and amended standards adopted by the Institute

The Institute has applied the following amendments to existing standards for the first time for
their annual reporting period commencing 1 January 2016:

The amendments to IAS 1 Presentation of Financial Statements are made in the context of the
International Accounting Standards Board‟s Disclosure Initiative, which explores how financial
statement disclosures can be improved. The amendments provide clarifications on a number of
issues, including:

 Materiality – an entity should not aggregate or disaggregate information in a manner that

obscures useful information. Where items are material, sufficient information must be
provided to explain the impact on the financial position or performance.

 Disaggregation and subtotals – line items specified in IAS 1 may need to be

disaggregated where this is relevant to an understanding of the entity‟s financial position
or performance. There is also new guidance on the use of subtotals.

 Notes – confirmation that the notes do not need to be presented in a particular order.

 OCI arising from investments accounted for under the equity method – the share of Other
Comprehensive Income (OCI) arising from equity-accounted investments is grouped
based on whether the items will or will not subsequently be reclassified to profit or loss.

11
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

Each group should then be presented as a single line item in the statement of other
comprehensive income.

12
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (Continued)

2. Summary of significant accounting policies (continued)

2.1.1 Changes in accounting policy and disclosures (continued)

(a) New and amended standards adopted by the Institute (continued)

According to the transitional provisions, the disclosures in IAS 8 regarding the adoption of new
standards/accounting policies are not required for these amendments. The amendments
became effective on 1 January 2016. The adoption of these amendments did not have any
impact on the current period or any prior period and is not likely to affect future periods.

(b) New standards and interpretations that are not yet effective and have not been early
adopted by the Institute

A number of new and amended standards have become effective for the period beginning 1
January 2016. The Directors have assessed the effects of these new and amended standards
and have determined that these new and amended standards do not have any material impact
on the institute‟s financial statements.

IFRS 9 Financial instruments

IFRS 9 addresses the classification, measurement and derecognition of financial assets and
financial liabilities and introduces new rules for hedge accounting and a new impairment model
for financial assets. These latest amendments now complete the new financial instruments
standard.

IFRS 9 must be applied for financial years commencing on or after 1 January 2018. Based on
the transitional provisions in the completed IFRS 9, early adoption in phases was only
permitted for annual reporting periods beginning before 1 February 2015. After that date, the
new rules must be adopted in their entirety.

Contemporaneous documentation is still required but is different to that currently prepared

under IAS 39. The standard is effective for accounting periods beginning on or after 1
January 2018. Early adoption is permitted. The Management Board is yet to assess IFRS
9‟s full impact.

IFRS 15: Revenue from Contracts with Customers

The IASB has issued a new standard for the recognition of revenue. This will replace IAS 18
which covers contracts for goods and services and IAS 11 which covers construction
contracts. The new standard is based on the principle that revenue is recognised when control
of a good or service transfers to a customer. The standard permits either a full retrospective or
a modified retrospective approach for adoption.

The Institute has not estimated the impact of the new rules on the Institute‟s financial
statements. The Institute will make an assessment of the impact over the next twelve months.
The standard is effective for financial periods commencing on or after 1 January 2018.

IFRS 16: Leases

IFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the
balance sheet, as the distinction between operating and finance leases is removed. Under the
13
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

new standard, an asset (the right to use the leased item) and a financial liability to pay rentals
are recognised. The only exceptions are short-term and low-value leases.
NOTES (Continued)

2. Summary of significant accounting policies (continued)

2.1.1 Changes in accounting policy and disclosures (continued)

IFRS 16: Leases

The accounting for lessors will not significantly change.

There are no other IFRSs or IFRIC interpretations that are not yet effective that would be
expected to have a material impact on the Institute.

2.2 Foreign currencies

Functional and presentation currency

Foreign currency transactions are translated into the functional currency using the exchange
rates prevailing at the dates of the transactions or valuations where items are re-measured.
Foreign exchange gains and losses resulting from the settlement of such transactions and from
the translation at year-end exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognised in profit or loss.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are
presented in profit or loss within „finance income or cost‟. All other foreign exchange gains and
losses are presented in profit or loss within „other income or expenses‟. The functional and
presentation currency of the Institute is the United States Dollar (US$).

2.3 Membership subscriptions

Member State annual subscriptions are recognised in accordance with the contribution ratio
agreed amongst the member countries. This income is accounted for on accrual basis.

2.4 Interest income

Finance income comprises interest on funds invested and is on an accruals basis using the
effective interest method.

2.5 Financial assets

(i) Classification

The Institute classifies its financial assets in the following categories: loans and receivables
and held-to-maturity financial assets based on the purpose for which the financial assets were
acquired. Management determines the classification of the financial assets at initial
recognition.

(ii) Recognition and measurement

Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. They are included in current assets, except for
maturities greater than 12 months after the end of the reporting period. These are classified as

14
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

non-current assets. Regular purchases and sales of financial assets are recognised on the
trade-date – the date on which the institute commits to purchase or sell the asset. Loans and
receivables are initially recognised at fair value plus transaction costs and subsequently
carried at amortised cost using the effective interest method.

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 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (Continued)

2. Summary of significant accounting policies (continued)

2.5 Financial assets (continued)

(ii) Recognition and measurement (continued)

Held to maturity financial instruments are those which carry fixed determinable payments and
have fixed maturities and which the Institute has the intention and ability to hold to maturity.
After initial measurement, held-to-maturity financial investments are subsequently measured at
amortised cost using the effective interest rate method, less allowances for impairment.
Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees that are an integral part of the effective interest rate. The amortisation is included in
„interest income and finance income‟ in the statement of comprehensive income.

(iii) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the statement of
financial position when there is a legally enforceable right to offset the recognised amounts
and there is an intention to settle on a net basis or realise the asset and settle the liability
simultaneously.

(iv) Impairment

The Institute assesses at the end of each reporting period whether there is objective evidence
that a financial asset or group of financial assets is impaired. A financial asset or a group of
financial assets is impaired and impairment losses are incurred only if there is objective
evidence of impairment as a result of one or more events that occurred after the initial
recognition of the asset (a „loss event‟) and that loss event (or events) has an impact on the
estimated future cash flows of the financial asset or group of financial assets that can be
reliably estimated.

Evidence of impairment may include indications that the debtors or a group of debtors is
experiencing significant financial difficulty, default or delinquency in interest or principal
payments, the probability that they will enter bankruptcy or other financial reorganisation, and
where observable data indicate that there is a measurable decrease in the estimated future
cash flows, such as changes in arrears or economic conditions that correlate with defaults.

The amount of the loss is measured as the difference between the asset‟s carrying amount
and the present value of estimated future cash flows (excluding future credit losses that have
not been incurred) discounted at the financial asset‟s original effective interest rate. The
carrying amount of the asset is reduced and the amount of the loss is recognised in profit or
loss.

If, in a subsequent period, the amount of the impairment loss decreases and the decrease can
be related objectively to an event occurring after the impairment was recognised, the reversal
of the previously recognised impairment loss is recognised in profit or loss.

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 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)

2. Summary of significant accounting policies (continued)

2.6 Determination of fair values

For financial instruments traded in active markets, the determination of fair values of financial
assets and financial liabilities is based on quoted market prices or dealer price quotations.
2.7 Derecognition
Financial assets are derecognised when the contractual rights to receive the cash flows from
these assets have ceased to exist or the assets have been transferred and substantially all the
risks and rewards of ownership of the assets are also transferred (that is, if substantially all the
risks and rewards have not been transferred, the Institute tests control to ensure that
continuing involvement on the basis of any retained powers of control does not prevent de-
recognition). Financial liabilities are derecognised when they have been redeemed or
otherwise extinguished.

2.8 Property and equipment

All property and equipment are stated at historical cost less depreciation. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset‟s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that future economic benefits associated with
the item will flow to the Institute and the cost of the item can be measured reliably. The
carrying amount of the replaced part is derecognised. All other repairs and maintenance are
charged to the income statement during the financial period in which they are incurred.
Depreciation is calculated using the straight line method to allocate the cost of property and
equipment to their residual values over their estimated useful lives as follows:
Rate (%)
Drivers cubicle 10
Furniture 20
Motor vehicles 20
Office equipment 20
Communication equipment 20
Computer equipment 33⅓

An asset‟s carrying amount is written down immediately to its recoverable amount if the
asset‟s carrying amount is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing the proceeds with the carrying
amount and are recognised within „Other (losses)/gains – net‟ in the income statement.

2.9 Intangible assets

Acquired computer software are capitalised on the basis of the costs incurred to acquire and
bring to use specific software. These costs are amortised on the basis of expected useful lives.
Software has a maximum expected useful life of 3 years. Softwares are carried at cost less
any amortisation and impairment losses, of any.

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West African Monetary Institute

Financial statements

For the year ended 31 December 2016

18
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)

2. Summary of significant accounting policies (continued)

2.10 Accounts receivable

Accounts receivable are amounts due from member countries and upfront payment to
suppliers for merchandise purchased or services performed in the ordinary course of business.
If collection is expected in one year or less (or in the normal operating cycle of the business if
longer), they are a classified as current assets. If not, they are presented as non-current
assets.

Amounts due from member countries are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method less provision for impairment.
2.11 Operating leases
Leases in which a significant portion of the risks and rewards of ownership are retained by
another party, the lessor, are classified as operating leases. Payments, including
prepayments, made under operating leases (net of any incentives received from the lessor)
are charged to the statement of comprehensive income on a straight-line basis over the period
of the lease.
2.12 Cash and cash equivalents
For the purposes of the statement of cash flows, cash and cash equivalents comprise
balances with less than three months‟ maturity from the date of acquisition, including cash in
hand, deposits held with banks, and other short term highly liquid investments with original
maturities of less than three months.
2.13 Provisions
Provisions are recognised when the Institute has a present legal or constructive obligation as a
result of past events; it is probable that an outflow of resources will be required to settle the
obligation; and the amount has been reliably estimated. Restructuring provisions comprise
lease termination penalties and employee termination payments. Provisions are not
recognised for future operating losses.
Provisions are measured at the present value of the expenditures expected to be required to
settle the obligation using a pre-tax rate that reflects current market assessments of the time
value of money and the risks specific to the obligation. The increase in the provision due to
passage of time is recognised as interest expense.

2.14 Accounts payable

Accounts payable are obligations to pay for goods or services that have been acquired in the
ordinary course of business from suppliers. Accounts payable are classified as current
liabilities if payment is due within one year or less (or in the normal operating cycle of the
business if longer). If not, they are presented as non-current liabilities. Accounts payable are
recognised initially at fair value and subsequently measured at amortised cost using the
effective interest method.

2.15 Capital contributions

19
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

Contributions by member states to the West African Central Bank Capital and the Stabilisation
and Cooperation Fund in accordance with the ECOWAS budgetary contribution formula are
recognised in equity as capital contributions.

20
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
2. Summary of significant accounting policies (continued)

2.16 Interest on members’ capital contribution

Interest income on members‟ capital contribution is initially recognised as income in the

statement of comprehensive income and subsequently set aside in equity as part of the equity
contributions of member states towards the West African Central Bank (WACB) Capital and
the Stabilisation and Cooperation Fund (SCF).

The interest income capitalised is used to reduce the outstanding contributions of member
states to the WACB Capital and SCF on a proportionate basis. Interest capitalised in excess of
the allocated member contributions is recognised as an advance member subscription of the
member states.

2.17 Impairment of non-financial assets

Assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. An impairment loss is recognised for the
amount by which the asset‟s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset‟s fair value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which
there are separately identifiable cash flows (cash-generating units). The impairment test also
can be performed on a single asset when the fair value less cost to sell or the value in use can
be determined reliably. Non-financial assets that suffered impairment are reviewed for possible
reversal of the impairment at each reporting date.

2.18 Employee benefits

The Institute makes contributions to a statutory pension scheme and to a provident fund for
eligible employees. Contributions by the Institute to the mandatory pension scheme are
determined by law and are defined contribution plans. They are accounted for on an accrual
basis. The provident fund contributions are managed by Enterprise Trustees Limited.

3. Critical accounting estimates and judgements in applying accounting policies

The Institute makes estimates and assumptions that affect the reported amounts of assets and
liabilities within the next financial year. All estimates and assumptions required in conformity
with IFRS are best estimates undertaken in accordance with the applicable standard.
Estimates and judgements are evaluated on a continuous basis, and are based on past
experience and other factors, including expectations with regard to future events.

Accounting policies and managements‟ judgements for certain items are especially critical for
the Institute‟s results and financial situation due to their materiality.
Impairment losses on financial assets

The Institute reviews its portfolio of financial assets for impairment on a regular basis. In
determining whether an impairment loss should be recorded in the statement of
comprehensive income, the Institute makes judgements as to whether there is any observable
data indicating that there is a measurable decrease in the estimated future cash flows from a
portfolio of loans before the decrease can be identified with an individual loan in that portfolio.
This evidence may include observable data indicating that there has been an adverse change

21
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

in the payment status of borrowers in a group, or national or local economic conditions that
correlate with defaults on assets in the group.

22
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
4. Financial risk management

The Institute‟s activities expose it to a variety of financial risks and those activities involve the
analysis, evaluation, acceptance and management of some degree of risk or combination of
risks.

Risk management framework

The Institute‟s risk management policies are designed to identify and analyse these risks, to
set appropriate risk limits and controls, and to monitor the risks and adherence to limits by
means of reliable and up-to date information systems. The Institute regularly reviews its risk
management policies and systems to reflect changes in markets, products and emerging best
practice.

The most important types of risk are credit risk, liquidity risk, and market risk. Market risk
includes currency risk, interest rate and other price risk.

The Institute‟s Management Board is responsible for monitoring compliance with the Institute‟s
risk management policies and procedures and for reviewing the adequacy of the risk
management framework in relation to the risks faced by the Institute.
a) Credit risk

The Institute takes on exposures to credit risk, which is the risk that a counterparty will be
unable to pay amounts in full when due. Credit risk arises principally from the institute's
account receivable. The Institute establishes an allowance for impairment losses that
represents its estimate of incurred losses in respect of receivables.

(i) Maximum exposure to credit risk

The Institute‟s maximum exposure to credit risk at 31 December 2016 and 2015 is the same
as the amounts shown in the statement of financial position for investment securities, accounts
receivable and cash and bank balances.

(ii) Credit quality of financial assets

None of the financial assets subject to credit risk are either past due or impaired.

(iii) Security

There were no assets pledged as security.

(b) Liquidity risk

Liquidity risk is the risk that the Institute will encounter difficulties in meeting its obligation when
they fall due. The table below analyses the Institute‟s liabilities into relevant maturity groupings
based on the remaining period at the reporting date to contractual maturity date.

Up to Over 180 Total

At 31 December 2016 180 days days

Accounts payable 383,244 - 383,244

At 31 December 2015

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West African Monetary Institute

Financial statements

For the year ended 31 December 2016

Accounts payable 435,752 - 435,752

24
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars)

4. Financial risk management (continued)

(b) Liquidity risk (continued)

All financial liabilities are non-interest bearing and payable within one year from the reporting
date.

(c) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market prices.

(i) Currency risk

The Institute is exposed to currency risk on transactions that are denominated in
currencies other than the functional currency. The currency in which these transactions
are primarily denominated is the Ghana Cedi. At 31 December 2016, an
increase/decrease of 10% (2015:10%) in the exchange rate would have resulted in a
decrease/increase in surplus for the year of US$1,048 (2015: US$6,543).
(ii) Interest rate risk

Cash flow interest rate risk is the risk that the future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. Fair value interest rate risk is
the risk that the value of a financial instrument will fluctuate because of changes in
market interest rates.

Interest rates on the Institute‟s investments and borrowings may increase or decrease
with changes in the prevailing levels of market interest rates. At 31 December 2016, an
increase/decrease of 1 basis point (2015: 1 basis point) would have resulted in a
decrease/increase in surplus for the year of US$6,414 (2015: US$6,459).

The tables below summarises the Institute‟s exposure to interest rate risks. It includes
the Institute‟s financial instruments at carrying amounts categorised by the earlier of
contractual re-pricing or maturity dates.

Non
At 31 December 2016 Up to 1 3 – 12 interest
Assets month 1 – 3 months months bearing Total

Cash and bank balances - - - 117,852 117,852

Investment securities - 63,628,657 507,393 - 64,136,050
Accounts receivable - - - 198,520 198,520

Financial assets - 63,628,657 507,393 316,372 64,452,422

Liabilities
Accounts payable - - - 383,244 383,244

Financial liabilities - - - 383,244 383,244

Total interest re-pricing

gap - 63,628,657 507,393
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West African Monetary Institute

Financial statements

For the year ended 31 December 2016

26
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars)

4. Financial risk management (continued)

(c) Market risk (continued)

(ii) Interest rate risk (continued)

At 31 December 2015 Up to 1 3 – 12 Non interest

Assets month 1 – 3 months months bearing Total

Cash and bank balances - - - 364,965 364,965

Investment securities - 63,572,843 1,016,553 - 64,589,396
Accounts receivable - - - 144,106 144,106

Financial assets - 63,572,843 1,016,553 509,071 65,098,467

Liabilities
Accounts payable - - - 435,752 435,752
Financial liabilities - - - 435,752 435,752
Total interest re-pricing
gap - 63,572,843 1,016,553

(iii) Price risk

The institute does not hold any financial assets that are subject to price risk.

d) Fair value of financial assets and liabilities

The fair value of a financial instrument is defined as the amount at which the instrument could
be exchanged in an arms-length transaction between willing parties. The fair value
approximates the carrying amounts because the financial assets and liabilities are held to
maturity and subsequently measured at amortised cost. The estimated values of the financial
assets and liabilities are:

2016 2015
Carrying Fair Carrying Fair
amount value amount value
Financial assets
Investments 64,136,050 64,136,050 64,589,396 64,589,396
Accounts receivables 198,520 198,520 144,106 144,106
Cash and bank balances 117,852 117,852 364,965 364,965

64,452,442 64,452,442 65,098,467 65,098,467

Financial liabilities
Accounts payables 383,244 383,244 435,752 435,752

27
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

28
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars)

4. Financial risk management (continued)

e) Fair value estimation

The Institute discloses the fair value measurements by level of the following fair value
measurement hierarchy:
 Level 1: - Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: - Inputs other than quoted prices included within level 1 that are observable for
the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from
prices); and
 Level 3: - Inputs for the asset or liability that are not based on observable market data
(that is unobservable inputs)

The following table presents the Institutes financial assets measured at fair value:

Level 1 Level 2 Level 3

At 31 December 2016

Fixed deposits held with financial institutions

- 64,136,050 -

At 31 December 2015

Fixed deposits held with financial institutions - 64,589,396 -

29
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)
5. Property and equipment
Year ended 31 December 2016
Motor Office Communication Computer Drivers
vehicle Furniture equipment equipment equipment facility Total
Cost
At 1 January 390,147 146,175 44,704 23,360 56,126 13,010 673,522
Additions 50,000 - 3,770 - 1,670 - 55,440
Disposal (32,722) - - - - - (32,722)

At 31 December 407,425 146,175 48,474 23,360 57,796 13,010 696,240

Accumulated
Depreciation

At 1 January 147,799 133,056 32,069 23,360 47,251 1,843 385,378

Charge for the year 72,068 2,839 4,615 - 8,724 1,301 89,547
Disposal (15,923) - - - - - (15,923)

At 31 December 203,944 135,895 36,684 23,360 55,975 3,144 459,002

Net book amount

At 31 December 203,481 10,280 11,790 - 1,821 9,866 237,238

22
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)

5. Property and equipment (continued)

Year ended 31 December 2015

Motor Office Communication Computer Drivers
vehicle Furniture equipment equipment equipment facility Total
Cost

At 1 January 323,485 141,161 38,578 23,360 56,126 13,010 595,720

Additions 96,662 5,014 6,126 - - - 107,802
Disposal (30,000) - - - - - (30,000)

At 31 December 390,147 146,175 44,704 23,360 56,126 13,010 673,522

Accumulated
Depreciation

At 1 January 120,491 130,384 28,335 23,293 38,509 542 341,554

Charge for the year 57,308 2,672 3,734 67 8,742 1,301 73,824
Disposal (30,000) - - - - - (30,000)

At 31 December 147,799 133,056 32,069 23,360 47,251 1,843 385,378

Net book amount

At 31 December 242,348 13,119 12,635 - 7,875 11,167 288,144

23
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)
5. Property and equipment (continued)

Profit on disposal of property and equipment:

2016 2015

Cost 32,722 30,000

Accumulated depreciation (15,923) (30,000)

Net book amount 16,799 -

Proceeds (17,241) (1,000)

Profit on disposal (442) (1,000)

6. Intangible assets – Computer software

Cost
At January 32,644 16,279
Additions 6,244 16,365

At 31 December 38,888 32,644

Amortisation
At 1 January 14,618 9,426
Charge for the year 10,443 5,192

At 31 December 25,061 14,618

Net book amount at 31 December 13,827 18,026

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 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)

7. Investment securities

Investment securities represent money market fixed income securities classified as held -to-
maturity as shown below:

2016 2015

Zenith Bank term deposits 1,008,449 1,016,352

United Bank of Africa term deposits 507,393 1,016,458
West African Central Bank Capital Investment 28,942,672 28,913,266
Stabilisation and Cooperation Fund Investment 33,677,536 33,643,320

64,136,050 64,589,396
Investments maturing within

- 91 days of purchase 63,628,657 63,572,843

- 120 days of purchase 507,393 508,284
- 180 days of purchase - 508,269

64,136,050 64,589,396

8. Accounts receivable

Prepayments 14,090 24,869

Other receivables 184,430 119,237

198,520 144,106

9. Cash and bank balances

Cash in hand 3,439 1,088

Bank balances 114,413 363,877

117,852 364,965

25
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

26
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)
10. West African Central Bank Capital
Year ended 31 December 2016

Release to
Expected Contribution at Interest member Contribution at Amount
Country Contribution 1 January Capitalised subscription 31 December Outstanding

The Gambia 6,600,000 6,632,830 6,746 (32,830) 6,606,746 (6,746)

Ghana 16,200,000 4,914,354 4,998 - 4,919,352 11,280,648
Guinea 10,400,000 - - - - 10,400,000
Liberia 4,200,000 - - - - 4,200,000
Nigeria 57,900,000 17,366,082 17,662 - 17,383,744 40,516,256
Sierra Leone 4,700,000 - - - - 4,700,000

100,000,000 28,913,266 29,406 (32,830) 28,909,842 71,090,158

Year ended 31 December 2015

The Gambia 6,600,000 6,626,128 6,702 - 6,632,830 (32,830)

Ghana 16,200,000 4,909,388 4,966 - 4,914,354 11,285,646
Guinea 10,400,000 - - - - 10,400,000
Liberia 4,200,000 - - - - 4,200,000
Nigeria 57,900,000 17,348,535 17,547 - 17,366,082 40,533,918
Sierra Leone 4,700,000 - - - - 4,700,000

100,000,000 28,884,051 29,215 - 28,913,266 71,086,734

In accordance with the ECOWAS budgetary contribution formula, member states are to contribute an initial amount of US$100 million,
which represents 50% of the seed capital of US$200 million required for the West African Central Bank Capital.
26
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

The member countries did not contribute to West African Central Bank Capital during the year.

27
 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)
11. Stabilisation and Cooperation fund
Year ended 31 December 2016

Country Release to
Expected Contribution at Interest member Contribution at Amount
Contribution 1 January Capitalised subscription 31 December Outstanding

The Gambia 3,300,000 3,300,594 3,357 (594) 3,303,357 (3,357)

Ghana 8,100,000 9,874,206 10,042 - 9,884,248 (1,784,248)
Guinea 5,200,000 - - - - 5,200,000
Liberia 2,100,000 - - - - 2,100,000
Nigeria 28,950,000 17,644,590 17,945 - 17,662,535 11,287,465
Sierra Leone 2,350,000 2,823,930 2,872 - 2,826,802 (476,802)

50,000,000 33,643,320 34,216 (594) 33,676,942 16,323,058

Year ended 31 December 2015

The Gambia 3,300,000 3,297,259 3,335 - 3,300,594 (594)

Ghana 8,100,000 9,864,228 9,978 - 9,874,206 (1,774,206)
Guinea 5,200,000 - - - - 5,200,000
Liberia 2,100,000 - - - - 2,100,000
Nigeria 28,950,000 17,626,761 17,829 - 17,644,590 11,305,410
Sierra Leone 2,350,000 2,821,076 2,854 - 2,823,930 (473,930)

50,000,000 33,609,324 33,996 - 33,643,320 16,356,680

27
West African Monetary Institute

Financial statements

For the year ended 31 December 2016

In accordance with the ECOWAS Budgetary contribution formula, member states are to contribute an initial amount of US$50 million,
which represents 50% of the seed capital of US$100 million required for the Stabilisation and Co-operation Fund.
The member countries did not contribute to Stabilisation and Co-operation Fund during the year.

28
 West African Monetary Institute

Annual Report

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)
12. Accounts payable
2016 2015
Accruals 156,893 96,640
Contribution by member states for restructuring 203,840 312,105
Others 22,511 27,007

383,244 435,752
13. Membership subscription

The Gambia 230,397 245,916

Ghana 565,521 603,611
Republic of Guinea 363,051 387,504
Liberia 146,617 156,492
Nigeria 2,021,216 2,157,351
Sierra Leone 164,071 175,121

3,490,873 3,725,995

14. Other income

Profit on disposal 442 1,000

Other project funds - -
Members‟ other contributions 108,265 177,928
Release of WAMI staff retreat provision - -
Insurance claim recovery 618 615

109,325 179,543
15. Finance income

Interest on investments 42,529 54,453

Interest on staff loans 1,406 1,105

43,935 55,558
16. Work programme

External relations 172,836 138,634

Macroeconomic surveillance 185,216 147,646
Trade development and sensitisation programme 41,410 43,880
Capacity building 68,671 25,989
Director General's special mission 20,947 8,789
WAMZ statutory meeting 154,526 53,508
WAMZ study expenses 10,032 136
Financial sector integration programme 86,649 53,715
Payments system project expenses 18,114 24,799

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Financial statements

For the year ended 31 December 2016

Legal work program 30,637 11,847

789,038 508,943

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 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)

17. Administrative expenses

2016 2015

Emoluments 2,984,522 2,624,872

Motor vehicle expenses 47,096 41,180
Equipment maintenance 18,033 17,127
Utilities and postage 168,896 123,564
Stationery 11,747 9,223
Entertainment 6,982 7,048
Periodicals and books 1,632 1,202
Auditors' remuneration and related expenses 20,000 20,000
Publication 32,805 -
Exchange difference 7,846 1,488
Bank charges 1,490 2,268
Amortisation of intangible assets 10,443 5,193
Depreciation 89,546 73,824
Security and sanitation 20,960 20,508
Restructuring cost 108,265 177,927
Other insurances 3,672 3,645

3,533,935 3,129,069
Emoluments

Emoluments comprise the following:

Salaries 2,677,958 2,450,403

Other benefits 287,836 78,758
Pension contributions 18,728 95,711

2,984,522 2,624,872
Restructuring cost

Restructuring cost comprise:

Severance pay 92,265 144,427

Repatriation allowance 16,000 33,500

108,265 177,927

18. Interest income on members capital contribution

Interest income on members capital contribution comprise:

Interest on WACB capital contribution 29,406 29,215

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 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

Interest on SCF contribution 34,216 33,996

63,622 63,211

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 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

NOTES (continued)
(All amounts are in US Dollars unless otherwise stated)

19. Cash generated from operations

2016 2015

(Deficit)/surplus for the year (615,218) 386,295

Depreciation (Note 5) 89,547 73,824
Amortisation (Note 6) 10,443 5,192
Interest received on programme funds with banks (Note 15) (43,935) (55,558)
Interest received on members‟ capital contribution (Note 18) (63,622) (63,211)
Profit from disposal of equipment (Note 5) (442) (1,000)
Increase in accounts receivable (54,414) (61,201)
Increase in accounts payable (52,508) (90,511)

Net cash (used in)/generated from operating activities (730,149) 193,830

20. Cash and cash equivalents

Cash and cash equivalents comprise:
Cash in hand 3,439 1,088
Cash at bank 114,413 363,877
Money market securities 64,136,050 64,589,396

64,253,902 64,954,361

21. Income tax

In accordance with the Headquarters agreement executed between the Government
of the Republic of Ghana and the West African Monetary Institute, the Institute is
exempt from tax and duty coming from its operations in Ghana and other member
countries to the WAMI agreement.

22. Contingent liabilities

There were no contingent liabilities at 31 December 2016 (2015: Nil).

23. Capital commitments

There were no capital commitments at 31 December 2016 (2015: Nil).

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