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

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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

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 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

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 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

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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 area, real GDP slowed to 1.7 percent
Economy from 2.0 percent, owing mainly to
deceleration in domestic demand,

G
lobal growth remained sluggish which can be attributable to a
in 2016, despite the increased reduction in business confidence,
momentum in economic emanating from the “Brexit” vote.
activity during the second half of the Likewise, Japan experienced a 0.2
year, on the back of partial commodity percentage point reduction in growth,
price recovery. Real GDP was thus partly as a result of weaker external
estimated at a lower growth rate of 3.1 demand and corporate investment. On
percent in 2016, compared to the the other hand, growth in the Other
revised real GDP growth of 3.4 percent Advanced Economies, which excludes
in 2015. The slowdown in growth can US, the Euro Area and Japan, slightly
be attributed to a number of factors strengthened to 2.0 percent in 2016,
among which were structural owing to increased growth in some of
impediments; such as low productivity the economies in the group. However,
growth and high income inequality, growth in the United Kingdom slowed
United Kingdom‟s referendum result to 1.8 percent in 2016, largely owing to
to leave the European Union (Brexit) the post-referendum effects on
and weaker-than-expected growth in manufacturing activity.
the United States (US). The continued
rebalancing of the Chinese economy, The emerging market and developing
commodity price shocks in low income economies, which accounted for the
countries and fiscal policy tightening bulk of global growth, recorded a
in most advanced economies, as well marginal decline in growth, mainly due
as geopolitical tensions and other non- to the macroeconomic challenges faced
economic factors especially in some by commodity exporting countries
parts of the Middle East and Africa, particularly during the first half of
also contributed to the growth decline. 2016. Growth moderated in China to
6.7 percent from 6.9 percent in 2015,
Growth in the Advanced Economies partially owing to the continuing
declined to 1.7 percent from 2.1 transition of the economy from an
percent in 2015, driven largely by investment-led to a consumption-led
slower growth in all but the “Other growth model. Similarly, emerging and
Advanced Economies” in the bloc. developing Asia recorded decrease in
Real GDP in the US decelerated to 1.6 growth and in India, growth slowed to
percent in 2016, largely on account of 6.8 percent from 7.9 percent in 2015.
weakness in investments, reflecting the Growth in the Middle East and North
appreciation of the US dollar, reduced Africa (MENA) region, however,
spending in the energy sector, as well strengthened by 1.2 percentage points
as financial market volatilities and in 2016, driven largely by uptick in oil
recession uncertainties. In the Euro prices towards the end of the year.

1
In the Commonwealth of Independent sterling, the US dollar appreciated to
States (CIS), real GDP grew by 0.3 US$1.23/£ at the end of 2016 from
percent compared to a contraction of US$1.48/£ at the end of 2015.
2.2 percent in 2015, reflecting the Likewise, relative to the Euro, the US$
gradual exit of Russia from recession, appreciated to US$1.05/€ as at end
easing financial conditions leading to December 2016 from US$1.09/€ as at
improved investors‟ confidence and end December 2015. On the other
domestic demand, and stronger oil hand, the US dollar weakened against
prices. Alternatively, real GDP growth the Japanese Yen to JPY116.8/US$ as
in Sub-Saharan Africa decelerated to at end 2016 from JPY120.5/US$ as at
1.4 percent from 3.4 percent in 2015, end 2015.
as the economies adjusted to the
relatively lower commodity revenues, Monetary policy was generally neutral
and continued to be challenged by high in most of the advanced economies in
debt levels as well as domestic 2016. However, some of the
conflicts. economies including the US, adopted
tight monetary policy stance during the
During the review period, inflation second half of the year, in tandem with
developments globally, had been suggested future inflationary pressures
heterogeneous. In the advanced resulting from stronger demand.
economies, inflation increased to 0.8 Short-term interest rates were raised by
percent from 0.3 percent in 2015, as the US Federal Reserve in December
the drag from lower commodity prices 2016 and long-term interest rates
diminished. All the economies significantly increased since August
experienced higher inflation, with the 2016. Similarly, there were increases
exception of Japan which recorded in long-term interest rates in the UK,
deflation owing partly to weaker Germany and Italy. On the contrary,
external demand. In the emerging monetary policy stance was broadly
market and developing economies, mixed in the emerging and developing
however, inflation declined to 4.4 economies; with rise in interest rates in
percent from 4.7 percent in 2015, as Turkey, Mexico and emerging Europe
exchange rates remained broadly stable whist interest rate cuts were
in most of the countries and in some experienced in Brazil, India and
cases, appreciated. Inflationary Russia, among others.
pressures intensified in Sub-Saharan
Africa, as the CPI rose to 11.4 percent In the advanced financial markets,
from 7.0 percent in 2015, mainly as a especially the equity markets, marked
result of the pass-through effects of the development was recorded in the midst
oil price increase, as well as exchange of stronger consumer confidence and
rate depreciation associated with the positive macroeconomic outlook.
earlier drawdown in commodity prices. Likewise, equity markets in the
emerging market economies showed
Foreign exchange developments strong recovery, on the aftermath of
indicated that in 2016, the US dollar the downturn in financial conditions
strengthened against most of the major following the US elections.
advanced economies‟ currencies,
compared to 2015. Against the pound

2
Crude oil prices strengthened during Although the overall fiscal deficits
the second quarter of 2016, maintained (including and excluding grants) for
an upward trend throughout the the Zone were within the ECOWAS
remaining months and reached threshold, three of the countries
US$52.6 per barrel as at end- recorded fiscal deficits in excess of the
December 2016, from US$ 36.6 per 3.0 percent threshold. Monetary
barrel at the end of 2015. The price targeting framework continued to be
increase was consistent with the implemented in all Member States,
involuntary reduction in oil production, except Ghana and Liberia that
pick-up in economic activity and employed inflation and exchange rate
projected stronger global demand. The targeting, respectively. The external
average price of gold reached a peak of sector indicated better performance
US$1,340.2 in August 2016, gradually compared to 2015, as the Zonal stock
declined to US$1,157.4 per troy ounce of foreign reserves as well as the
in December 2016, but still higher than months of imports-cover increased,
the US$ 1,068.3 per troy ounce and the overall balance of payments
registered in December 2015. In the position of all the countries improved.
same vein, iron-ore prices almost Foreign exchange market
doubled from an all-time low of developments were however not
US$40.9 per metric tonne in December encouraging, as the depreciation of all
2015 to US$79.4 per metric tonne in but one of WAMZ Member States
December 2016. The development in currencies worsened against the dollar.
metal prices was backed by a
slowdown in China‟s transition efforts, Real GDP growth moderated in The
increased investment in real estate, and Gambia to 2.2 percent in 2016 from
the expectations of fiscal policy easing 4.3 percent in 2015, mainly due to
in the US. The price of cocoa in the limited supply of foreign exchange,
international market, on the other hand, adverse weather conditions and
plummeted to US$2,295.3 per metric uncertainties surrounding the general
tonne in 2016, from US$3,345.7 in elections. Growth in 2016 was led by
2015, on the backdrop of decreased the services sector at 68.0 percent,
demand amidst excess supply. followed by the agriculture sector at
21.6 percent and the industrial sector at
1.2 Macroeconomic Developments in 14.4 percent. The end-period inflation
the WAMZ rate increased to 7.9 percent from 6.7
Economic growth in the WAMZ was percent in 2015, due largely to food
hampered during the review period, price increases and increased growth in
largely by the lingering effects of the monetary aggregates. Fiscal deficit
declining commodity prices. Inflation (including grants) and fiscal deficit
pressures worsened in the Zone, as (excluding grants) as a percentage of
most of the Member States registered GDP were 9.5 percent and 11.2 percent
double-digit inflation rates, and the in 2016, higher than the deficit of 6.3
Zonal end-period inflation increased. percent and 8.1 percent in 2015
The thrust of fiscal policy was aimed at respectively. Broad money grew by
consolidating public finances and 15.3 percent, compared to a
contain fiscal deficits within the contraction of 0.9 percent in 2015,
prescribed WAMZ benchmark. resulting mainly from the increase in

3
net domestic assets (NDA). Reserve overall balance of payments improved
money grew by 25.2 percent in 2016, to a surplus of US$247.4 million in
higher than the 10.0 percent growth in 2016 (0.6 percent of GDP) from a
2015. The overall balance of payments deficit of US$15.9 million (0.04
recorded a deficit of US$12.6 million percent of GDP) in 2015, mainly due
(1.3 percent of GDP) in 2016, to improvement in the trade balance.
compared to a surplus of US$62.0 Gross external reserves increased to
million (6.2 percent of GDP) in 2015. US$4.9 billion (4.2 months of import-
Gross external reserves declined to cover) from US$4.4 billion (3.6
US$59.8 million (2.4 months of months of import-cover) in 2015. As at
import-cover) from US$76.0 million end-December 2015, the official cedi-
(2.5 months of import-cover) in 2015. to-dollar nominal exchange rate
The dalasi depreciated against all depreciated by 9.2 percent.
major traded currencies; 9.7 percent
against the US dollar, 10.6 percent In Guinea, real GDP growth increased
against the pound sterling, and 9.2 to 5.2 percent in 2016, from 4.5
percent against the euro. percent in 2015, attributable to
improved performance in mining, trade
During the review period, growth was and agriculture sectors. The primary
sluggish in Ghana, as the real GDP sector contributed 0.7 percent to the
growth declined to 3.5 percent from GDP growth in 2016, the secondary
3.8 percent in 2015, mainly on account and tertiary sectors contributed 2.2
of contraction in the production of oil percent and 1.8 percent respectively
and gas. The services sector remained and customs duties and taxes
the largest contributor to GDP, contributed the remaining 0.6 percent.
accounting for 56.9 percent in 2016, As at end-December 2016, inflation
followed by Industry (24.2 percent) increased to 8.7 percent from 7.3
and Agriculture (18.9 percent). percent a year ago, largely due to
Inflationary pressures eased in 2016 as depreciation of the Guinean franc and
the end-period rate dropped to 15.4 increase in VAT. In 2016, the overall
percent from 17.7 percent at the end of fiscal deficit (excluding grants)
2015, largely on account of slowdown decelerated to 1.3 percent of GDP from
in the depreciation of the cedi, 7.4 percent of GDP in 2015. In the
moderation in fuel price increases as same vein, the deficit (including
well as improvement in energy. The grants) declined to 0.2 percent of GDP,
overall fiscal deficit on commitment from 6.9 percent in 2015. Broad
basis (including grants) in 2016 money growth moderated in 2016 to
increased to 10.4 percent of GDP, from 9.9 percent, compared to 20.3 percent
4.8 percent in 2015, and that of in 2015, owing largely to lower growth
excluding grants rose to 11.1 percent in NDA. The overall balance of
of GDP from 6.7 percent the previous payments improved significantly from
year. Broad money grew by 22.0 a deficit of USD499.8 million (5.7
percent in 2016, compared to 26.1 percent of GDP) in 2015 to a deficit of
percent in 2014, owing mainly to USD0.8 million (0.01 percent of GDP)
decline in NDA. Reserve money in 2016, mainly owing to improvement
growth increased to 29.6 percent in in the financial account. Gross external
2016 from 24.2 percent in 2015. The reserves increased to USD614.7

4
million in 2016, from USD465.4 the US dollar by 13.7 percent as at the
million in 2015. However, in terms of end of 2016.
months of import cover, external
reserves declined to 1.4 months in In Nigeria, real GDP contracted by 1.5
2016 from 2.3 months in 2015. The percent in 2016, from 2.8 percent
GNF depreciated against the US dollar growth in 2015, mainly owing to the
in both the official and parallel markets decline in oil prices, as well as
by 13.2 percent and 9.7 percent structural, fiscal and security
respectively. challenges. The services sector
continued to account for the largest
In 2016, real GDP growth in Liberia proportion of the overall real GDP
contracted by 0.5 percent from zero (36.9 percent), followed by agriculture
percent growth in 2015, due mainly to (24.4 percent), industry (17.8 percent),
reduction in gold and iron-ore mining. trade (17.2 percent) and construction
In terms of contribution to the growth (3.7). Inflationary pressures intensified
rate in 2016, the primary sector in 2016, leading to an end-period
contributed 0.8 percent, the secondary inflation of 18.6 percent from 9.6
sector -3.1 and the tertiary sector 1.8 percent in 2015, largely on account of
percent. The rate of inflation increased structural challenges especially high
to 12.5 percent at end-December 2016 electricity and transport cost, and the
from 8.0 percent at end-December insurgency in the North-East. The
2015, partly driven by the depreciation overall fiscal deficit worsened to 2.2
of the Liberian dollar. The overall percent of GDP in 2016 from 1.7
fiscal balance (excluding grants) percent in 2015. Broad money growth
recorded a surplus of 0.6 percent of declined to 18.3 percent in 2016, from
GDP against a deficit of 0.8 percent of 19.1 percent in 2015, explained by
GDP in 2015. Including grants, the decrease in NDA growth. On the other
fiscal surplus increased to 2.2 percent hand, reserve money grew by 0.3
of GDP from 1.6 percent of GDP in percent, relative to a contraction of 2.0
2015. Broad money grew by 10.0 percent registered in 2015. The overall
percent, lower than the 12.9 percent balance of payments recorded a deficit
growth in 2015, driven largely by of 0.2 percent of GDP in 2016, an
decrease in NDA growth. Reserve improvement, when compared to a
money growth was 14.7 percent in deficit of 1.2 percent of GDP in 2015.
2016, compared to a contraction of 1.4 Gross external reserves declined to
percent in 2015. In 2016, the overall US$26.9 billion (8.2 months of import
balance of payments registered a cover) in 2016, from US$ 28.3 billion
deficit of US$182.8 million (8.7 (5.8 months of import cover) in 2015.
percent of GDP), relative to a deficit of The naira depreciated against the US$
US$182.2 million (8.9 percent of by 35.5 percent at the interbank market
GDP) in the preceding year. Gross segment and by 45.5 percent at the
external reserves increased to Bureau-de-Change.
US$536.3 million (3.2 months of
import-cover) from US$509.3 million During the period under review, Sierra
(2.3 months of import-cover) in 2015. Leone recorded a real GDP growth of
The Liberian dollar depreciated against 6.1 percent, compared to a contraction
of 20.5 percent in 2015, due largely to

5
the resumption of iron-ore mining Gambia, Ghana and Sierra Leone
activities and the gradual pickup in satisfied one each.
commodity prices. Industry
contributed the greater percentage of The Gambia met one primary
2.2 percent to the growth in 2016, criterion namely: single digit inflation
followed by agriculture (2.0 percent), and missed three - the budget
services (1.7 percent) and taxes (less deficit/GDP including grants, central
subsidies on products) contributed the bank financing of government fiscal
remaining 0.2 percent. The end-period deficit as a percentage of previous
inflation accelerated to 17.4 percent in year‟s tax revenue and gross external
2016, from 8.9 percent in 2015, partly reserves. Ghana satisfied one
driven by the depreciation of the leone. criterion, namely: gross external
The overall budget deficit (excluding reserves in months of import. The three
grants) increased to 10.7 percent of criteria missed were single digit
GDP in 2016, from 9.7 percent in inflation, fiscal deficit including grants
2015. Including grants, the deficit also and central bank financing as a
increased to 7.7 percent of GDP, from percentage of previous year‟s tax
4.3 percent in 2015. Broad money revenue.
grew by 16.5 percent as at end-
December 2016, compared to 11.3 Guinea attained three primary criteria
percent a year ago, largely explained namely, the single digit inflation, fiscal
by an increase in NFA. Reserve money deficit including grants and central
growth increased significantly to 24.5 bank financing of fiscal deficit, but
percent from 10.4 percent at end- missed the gross external reserves in
December 2015. The overall balance months of imports criterion. Liberia
of payments deficit narrowed to 1.8 satisfied three primary criteria: fiscal
percent of GDP from 2.5 percent of deficit including grants, central bank
GDP in 2015. Gross external reserves financing and gross external reserves
declined to US$503.8 million, in months of imports. The country,
equivalent to 5.3 months of imports in however, missed the criterion on
2016, from US$580.3 million, single-digit inflation.
equivalent to 4.6 months of imports in
2015. The leone depreciated against Nigeria met three of the primary
the US dollar (Le/US$) by 21.6 percent criteria, namely: fiscal deficit as a
as at end-December 2016. percentage of GDP, central bank
financing and gross external reserves,
1.3 Macroeconomic Convergence but missed the single-digit inflation
and Policy Harmonisation in the criterion. Sierra Leone achieved the
WAMZ criterion on gross external reserves in
Member States‟ performance on the months of import cover, and missed
Rationalised ECOWAS primary the single-digit inflation, central bank
convergence criteria worsened relative financing of government fiscal deficit,
to 2015, as none of the Member States as well as the fiscal deficit (including
satisfied all four of the primary criteria grants) as a percentage of GDP criteria.
in 2016. Guinea, Liberia and Nigeria
satisfied three each, while The Member States‟ performance on the
secondary criteria deteriorated

6
compared to 2015, as none of the underway by the Central Bank for the
countries attained both criteria. The establishment of a National Switch.
Gambia and Ghana satisfied the The implementation of the RTGS/SSS
criterion on exchange rate variation, which was scheduled for January 2016
while Guinea, Liberia, Nigeria and was completed in Liberia, and in
Sierra Leone satisfied the public debt addition to the Core Banking
to GDP ratio criterion. Application (CBA), Automated
Clearing House (ACH) and Automated
Intra-WAMZ trade improved and Cheque Processing (ACP), went live in
Member States continued to implement 2016. The Central Bank of Liberia in
the ECOWAS trade-related protocols collaboration with other stakeholders
as well as conventions in 2016. introduced the National Shared Switch,
Implementation of the ETLS improved developed the Payment Systems Rules
during the review period, as the and facilitated payment of government
number of approvals granted increased taxes through the RTGS. In Sierra
and complaints reduced. Nigeria and Leone, the Central Bank in partnership
Ghana continued the implementation with other stakeholders in the National
of the ECOWAS CET, The Gambia, Payments System Committee (NPSC)
Guinea and Liberia were set to continued to monitor and manage the
commence implementation in 2017, PSDP. In 2016, the launching of the
while Sierra Leone was at an advanced mobile money guidelines and
stage of preparedness. All the WAMZ implementation of a National Switch to
countries continued to observe the enhance the move to a cashless society,
visa-free movement of ECOWAS were at advanced stages. In addition,
citizens, and also a 90-day stay without the Bank introduced the automation of
residential permit, while the right to staff salaries and reconciliation,
establish was being selectively applied employing the PSDP platform.
across the Zone.
Considerable progress was made in the
The WAMZ Payments System Payments System of Ghana, during
Development Project (PSDP) in The the review period. The Ghana
Gambia, Guinea, Liberia and Sierra Interbank Payments Settlement System
Leone was successfully completed in (GIPSS) continued to provide the
2016. During the review period, The platform for high value payments for
Gambia continued to make steady the banks and their customers. The
progress in creating a cashless number of institutions connected to the
economy with the aid of the PSDP. In National Switch (Gh-link) as well as
addition to its leading role in financial the number of transactions on the
inclusion, Gamswitch, the National platform increased. With the
Payment Switch of The Gambia was introduction of the guidelines on
interfaced with the Real Time Gross electric-money, the mobile money
Settlement (RTGS) to facilitate daily space expanded. Nigeria strengthened
settlements. In Guinea, the its efforts to ensure reliability and
implementation of the two outstanding efficiency of the Payments System.
PSDP components, RTGS and Some of the key reforms in 2016
Scriptless Securities System (SSS) was include the establishment of an e-
completed in 2016. Plans were payment and Card Crime Unit of the

7
Nigerian police, approval of the draft position improved, while the asset
Payments System Management Bill for quality deteriorated. The industry,
subsequent enactment into law by the however, remained profitable, though
National Assembly, approval granted the Return on Equity (ROE) and
in principle to two Financial Service Return on Assets (ROA) declined. The
Providers, to operate as Super Agents, banking industry in Liberia recorded
guidelines introduced for the smooth marked improvement during the
operations of Treasury Single Account review period. The capital base and
and several initiatives adopted to liquidity position of the industry
ensure successful completion in the remained strong, profitability increased
implementation of the Bank and the asset quality also improved.
Verification Number in Nigeria. The Nigerian banking industry
registered weak performance in 2016,
Marked improvement continued to be but remained resilient. All the capital
recorded in the implementation of the adequacy indicators declined, and the
Basel Core Principles (BCPs), overall liquidity position as well as the
International Financial Reporting asset quality of the banking system
Standards (IFRS), Risk-Based weakened. The total assets of the
Supervision (RBS), Basel II & III, as banking sector in Sierra Leone
well as the Valtech Regulatory recorded increase in 2016, the capital
Compliance System (V-RegCoss) adequacy ratio (CAR) was above the
banking supervision processes in the threshold, overall liquidity position
WAMZ in 2016, The WAMZ banking was strong, profitability increased and
industry remained relatively sound and asset quality also improved.
safe in 2016, despite the unfavourable
macroeconomic condition. The The WAMZ insurance sector during
banking industry in The Gambia the review period was adversely
remained adequately capitalised, as all affected by the depreciation of member
the banks met the minimum capital- countries‟ currencies. Pension funds
adequacy ratio. Capital and reserves, as continued to be key financial sector
well as total assets of the industry players in the WAMZ, acting as
increased. On the other hand, the intermediaries for long term funds.
industry‟s profitability declined and However, with the unfavourable
the asset quality deteriorated. Ghana’s macroeconomic climate across
banking industry recorded member states, especially the
improvement in the financial deterioration in the value of the Naira,
soundness indicators as total assets total assets of pension funds declined
increased, and the minimum capital in 2016.
requirement was met. Profitability
declined but remained strong, while The Ghana and Nigeria capital markets
the asset quality deteriorated. The were challenged in 2016 by the
banking industry in Guinea was adverse economic environment,
relatively sound and stable in the leading to weak performance.
review period. The total assets of the Activities in the Sierra Leone Stock
industry increased, eleven out of the Exchange (SLSE), however, picked up
fifteen banks met the minimum capital as two more companies were listed.
requirement, the overall liquidity The West African Capital Market

8
Integration Council (WACMIC) 13th meeting, update the
continued to encourage on-going construction of the WAMZ
efforts to establish capital markets in Trade Integration Index, to
The Gambia, Guinea and Liberia. discuss the outcome of the
2015 Trade Ministers‟ Forum
1.4 Activities of the West African and other trade-related issues.
Monetary Institute ii. WAMI hosted the 15th
The work programme of the Institute Meeting of the ECOWAS-
in 2016, continued to be guided by the WAMI Joint Task Force (JTF)
“Abuja Road Map” in line with its on issues related to trade in
Strategic Plan, which is made up of Accra, Ghana from November
five pillars namely: Macroeconomic 29 to December 1, 2016 to
Convergence and Statistical review the report of the 14th
Harmonization; Trade and Regional meeting and follow up on
Integration; Financial Integration, issues deliberated at the
Payments Systems Infrastructure; and previous meeting, including the
Institutional and Capacity Building. construction of the WAMZ
trade integration index.
1.4.1Multilateral surveillance and
statistical harmonization iii. WAMI participated in the 8th
During the period under review, Session of the WAMZ Trade
WAMI in collaboration with the Ministers Forum, which was
ECOWAS Commission and the West held in Monrovia, Liberia. The
African Monetary Agency conducted theme of the Forum was
two multilateral surveillance missions “Opportunities for
in each of the six Member States of the Development through Regional
WAMZ in April and September 2016, Trade Integration”.
to assess their macroeconomic
performance as well as the status of 1.4.3 Financial Integration
their compliance with the WAMZ The Institute organized four meetings
convergence criteria and other of the College of Supervisors of the
structural benchmarks. Member States‟ WAMZ;
progress on the Payments System Organised the Expert Committee
Development Project as well as their Meeting on Quoting and Trading in
compliance with required standards set WAMZ currencies; and
under its Statistical Harmonization Participated in the Technical
agenda continued to be monitored by Committee Meetings of West African
the Institute in 2016. Capital Markets Integration Council
(WACMIC).
1.4.2 Trade and Regional Integration
i. The 14th Meeting of the 1.5 Statutory Meetings
ECOWAS-WAMI Joint Task The Institute organized the following
Force (JTF) on trade was statutory meetings in Accra, Ghana in
hosted by the ECOWAS January 2016 and in Conakry, Guinea
Commission in Abuja, Nigeria in August 2016:
from February 16 to 19, 2016
to review the JTF report of the

9
 i. Meetings held in Accra, discussions, to consider the
Ghana: The 38th Meeting of report of the Technical
the Technical Committee, the Committee, and to
32nd Meeting of the
Committee of Governors and iv. Consider the report on the
the 35th Meeting of the Committee of Governors,
Convergence Council of respectively.
Ministers and Governors of
Central Banks of the WAMZ 1.6 Institutional and Capacity
were held to discuss the status Building
of implementation of the Under the African Capacity Building
WAMZ Work Program, in line Foundation (ACBF) sponsored project,
with the technical documents staff participated in various training
prepared by WAMI, to consider workshops both in-house and abroad in
the report of the Technical the review period. Training
Committee, and to consider the programmes were also organised for
report on the Committee of staff from central banks and Ministries
Governors respectively. of finance of Member States, and study
visits to Member States conducted.
ii. Meetings held in Conakry,
Guinea: The 39th Meeting of 1.7 Publications
the Technical Committee, the In 2016, the Institute published the
33rd Meeting of the Committee Financial Stability Report, 2015
of Governors and the 36th Annual Report, two editions of the
Meeting of the Convergence West African Journal of Monetary and
Council of Ministers and Economic integration (WAJMEI),
Governors of Central three Occasional Paper Series (OPS),
the WAMZ Trade Integration Report
iii. Banks of the WAMZ were held and a book titled “Obstacles to Trade
to deliberate on the status of in the West African Monetary Zone
implementation of the WAMZ (WAMZ): Promoting integration in the
Work Program. Technical WAMZ.”
documents prepared by WAMI
formed the basis of the

10
 CHAPTER TWO

INTERNATIONAL MACROECONOMIC DEVELOPMENTS

2.1 Introduction Against the trend in the last couple of

years, global inflation commenced an

T he global macroeconomic space uptick in 2016 as consumer price

was highly strained in 2016 on inflation inched to 2.9 percent from 2.8
account of several shocks percent in 2015. A major driver of the
including the Brexit, an unprecedented new trend was the increase in
tension-soaked political activities in commodity prices cum their growing
the US, and pockets of sectarian strife importance as intermediate input in
in various regions of the world, notably production process. Inflation pressures
the Middle East. The shocks resurfaced in most of the advanced
constituted significant headwinds to countries as labor market conditions
economic activities as global growth firmed up coupled with the narrowing
slowed down to 3.1 percent from 3.4 of output gap. For most of the
percent in 2015, with the drag being emerging and developing economies,
exceptionally significant in emerging inflation pressure was fuelled largely
and developing market economies. by depreciation of currencies as well as
Growth lost momentum in developed structural constraints which
economies on the backlash of overwhelmed the moderating effect of
weaknesses in industrial production, slack in consumer demand. In terms of
retrenchment in trade volume, and the components, headline inflation was the
attendant buildup in inventories which main driver in both the advanced and
were further complicated by the legacy emerging economies while core
of the global financial crisis in most of inflation remained virtually
the countries. The downside risks unchanged.
appeared significantly skewed against
the emerging and developing Relative to the previous year, global
economies. Apart from China where fiscal balance showed a marked
growth was fairly strong due to robust deterioration in 2016 across the globe,
policy support that mitigated the largely informed by the need for
adverse impact of the rebalancing policymakers to provide swift support
model, economic activity remained for the recovery agenda. Public debt
soft in other key emerging market ratios became elevated in most
economies due to variety of reasons. countries especially in emerging
Growth was soft in India owing mainly market and middle-income countries,
to sharp movements in currency while where the fiscal deficit ratio exceeded
Brazil was still grappling with the levels at the initial phase of the
recession. Similarly, growth witnessed global financial crisis. The adverse
considerable slowdown in both fuel condition was extremely precarious for
importing and exporting countries commodity exporters even as
while geo-political conflicts posed cumulative fiscal balance is still
considerable drag in the Middle East expected to deteriorate in these
and Turkey. economies over the next five years
compared to the 2004-2008 era. Apart

11
from the adverse impact of softening Federal Reserves strengthened the
commodity prices, fiscal balances in normalization process, many global
developing and emerging market currencies shed considerable weight
economies equally suffered from tight against the US dollar during the period,
and volatile financial market condition, including, the Euro, Pound Sterling
which exerted upward pressure on and Chinese Reminibi. Other factors
interest rates in the face of rising gross like cyclical nature of investors‟
financing needs. sentiment, pervasive economic,
financial, and geo-political shocks also
A remarkable development in global contributed to sharp swings in
monetary policy during the review currencies during the period.
period was the commencement of
synchronization of policy stance across Notwithstanding the tepid growth in
the globe after a prolonged era of economic activities, commodity prices
divergence in policy stance. The US experienced some level of rally
Federal Reserve commenced a gradual particularly in the latter half of 2016.
normalization of monetary policy in Crude oil prices increased by about 20
late 2015 which was further percent as uptick in demand from the
strengthened in 2016, after a fairly advanced economies was reinforced by
long period of policy rate around zero restraint in supply by the Organization
bound. Most other systemic important of Petroleum Exporting Countries
central banks like Bank of England (OPEC). Non-fuel commodities also
equally maintained a tightening mode. showed an upward trend as metal
A probable exception was the Bank of prices increased by about 23 percent
Japan in view of the need to provide while prices of agricultural
support to the process of recovery from commodities increased by about 4
one of the worst recessions in the percent.
nation‟s history. As expected, the
spillovers extended to emerging 2.2 Developments in Output and
market and developing economies Prices
where most had to contend with 2.2.1: Output Developments
heightened challenges of capital Growth in global output in 2016 was
outflow and attendant depreciation of challenged by a number of headwinds
domestic currencies. including the referendum by the UK to
exit Euro area (Brexit), exceptionally
Most of the global currencies intense electoral activities in the US,
experienced considerable volatility rebalancing model in China, protracted
during the review period mainly due to declining terms of trade for commodity
structural rigidity particularly the exporters, and non-economic factors
continued reliance on US dollar as such as pockets of conflicts in various
reserve currency. This singular regions of the world particularly in the
phenomenon led to exchange rate Middle East. These shocks
disconnect in many countries as considerably weighed on economic
considerable deviation emerged activities as global growth slowed
between exchange rate movement and down from 3.4 percent in 2015 to 3.1
underlying economic fundamentals in percent in 2016.
most economies. Thus, as the US

12
In the advanced economies, growth Output growth in the US softened to
decelerated on account of complex 1.6 percent in 2016 from 2.6 percent in
interaction of the aforementioned new 2015 due to myriad of factors
shocks with age-long forces like slow including weakness in business fixed
moving trend, declining productivity investments, decline in capital
on account of weak demographic spending in the energy sector, low non-
profile, and subdued post financial farm productivity, and the effect of the
crisis recovery. In the US, although a new strength in dollar with the
pickup in activities could be observed attendant financial market volatility.
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.

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 The condition in Sub-Saharan Africa
1.7 percent in 2016 mainly due to ease equally followed the dismal
in domestic demand particularly local performance of other developing
investments while in the UK there was economies, with the highest severity
a slight deceleration in output from 2.0 recorded in Nigeria where economic
percent in 2015 to 1.8 percent in 2016 activities were constrained by
largely due to sharp post referendum resurgence of militancy in the Niger
retrenchment on manufacturing Delta areas, shortage of foreign
activity. Other advanced economies exchange, electricity outage, and low
like Canada, Japan, and Australia investors‟ sentiment. Growth was flat
equally witnessed considerable in South Africa owing to subdued
softening of economic activities as a domestic and external demand which
result of adverse spillover from the weighed heavily on both the mining
systemic important economies. and manufacturing sectors. Although
some degree of resilience could be
The risk factors appeared elevated for observed in some countries like Kenya,
emerging and developing economies Senegal, Cote d‟Ivoire, and Tanzania,
which in conjunction with persistent the effects of economic expansion in
low total factor productivity these countries were inadequate to
contributed to intensification of mitigate the negative spillovers from
weaknesses in economic activities in key economies of the region.
these economies. Apart from the
general factors that shaped 2.2.2 Price Developments
macroeconomic outturn in these Global inflation remained largely
economies, some other country subdued but unlike the continuous
specific risk factors were equally at downward trend over the last couple of
play. In India, the sharp swings in the years, a pick up commenced in 2016
value of the domestic currency particularly in the advanced
continued to militate against robust economies. Inflation rate in the
expansion in output while Brazil advanced countries increased to 0.8
continued to grapple with recession as percent from 0.5 percent in 2015 on
effects of past shocks like administered the backdrop of reduced drag from
price, declined commodity price, and energy prices and shrinking output gap
political uncertainty are yet to abate. although some levels of variation could
Russia is yet to fully recover from the still be observed across these countries.
dual effects of oil price shocks and In the US, inflation accelerated from
sanctions even as the financial system 0.1 percent in 2015 to 1.2 percent in
was just recuperating following the 2016 reflecting a rapid waning of
repair carried out on the system with disinflationary pressures and well
public funds. Macroeconomic space in anchored medium term inflation
Turkey was narrowed by the abortive expectations. For the euro area,
coup which heightened uncertainty inflation equally commenced an
while economic activities in the upward trend, although at a slower
Middle East continued to be pace, inching to 0.3 percent in 2016
challenged by subdued oil prices, geo- from an almost zero level in 2015,
political tension and civil conflicts in mainly due to reduction in output gap,
most of the countries. while the depreciation of the pound

14
sterling contributed substantially to sentiments that characterized the
inflation pressure in UK during the financial landscape in the past three
period. For other advanced economies years. The development was largely
like Switzerland which were still in propelled by the conditions in the
disinflation mode, the degree of the advanced economies. In the US,
deflation appeared mild during the confidence in the financial market
period. firmed up on account of positive
outlook, expectation of fiscal stimulus,
Inflation pressures were much more and higher infrastructure spending. The
pronounced in emerging and development, however, increased the
developing economies during the upside risks to inflation and invariably,
review period. In key emerging reinforced the need to accelerate the
pace of monetary policy normalization
Figure 3: World Inflation Rates: 2010 - 2016

economies like Brazil, Russia, Turkey by the Federal Reserve (Fed).

and Mexico, inflation exceeded central
bank‟s target on account of the pass Consequently, the Fed commenced a
through effect of exchange rate tight monetary policy stance in the
depreciation while it increased to 2.1 latter part of the year by increasing the
percent in China as slack in the policy rate by 0.25 percent. Reflecting
industrial sector diminished. For most the direction of policy stance, both
sub Saharan Africa countries, inflation long-term nominal and real interest
returned to double digit as a result of rates increased substantially
the pass through effect of sharp particularly after the presidential
depreciation of domestic currencies. election. Similarly, long term rates
increased significantly in the UK,
2.2.3 Financial Market reflecting contagion from the US and
Developments: market expectation of restrictive
The global financial market exhibited a monetary policy on the heels of rising
fair degree of resilience in 2016, inflation pressure. The increase in long
reflecting gradual reversal of negative term yield was however, moderate in

15
the core euro area, except in Italy due Gold
to elevated political and banking sector Gold prices rallied to US$1,340 per
uncertainties. Unlike the advanced ounce in August 2016, which was
economies, financial market conditions almost the highest level since the first
in emerging economies remained quarter of 2014. The development was
diverse. Policy rate was increased in a propelled mostly by safe-haven
number of countries including Mexico demand due to heightened macro and
and Turkey while it was reduced in political uncertainty, notably the
countries like Brazil, India, and Russia. apprehension associated with Brexit.
The diversity equally reflected in the However, as the Fed commenced
spread of the Emerging Market Bond monetary policy tightening in the latter
Index. part of the year, most speculative
investors commenced a sell-off which
2.3 Developments in Commodity and exerted a downward pressure on the
Currency Markets price but at a slower pace such that the
average price was still higher than the
2.3.1 Commodity Markets level it was at end-December, 2015.
A partial rebound in commodity prices
was recorded in 2016 in what appeared Iron Ore
as cyclical recovery in business The prices of iron ore defied market
confidence. The IMF‟s Primary expectations in 2016, rising to about
Commodity Index increased by 22 US$80 per ton, the first time to attain
percent with the rally being strongest such a peak since August 2014. The
for fuel most especially for oil and rally was buoyed by strong demand in
coal. the face of drastic cut in supply. The
reduction in supply was largely
Crude Oil informed by the shutdown of large
Oil prices recovered from the number of mining fields in China
prolonged downward trend in mid- hinged on shift in consumers‟
2016 as the effect of abundant gas preference to higher grade iron ore
supply from Russia and reduced from Australia which is lower in
demand from Asia started to wane. pollution rate and simultaneously
After softening to a 10-year low in cheaper to process. It is however,
January, oil prices recorded a rally of envisaged that the rally in price in
about 50 percent by mid-year, 2016 reflected much of a spike as it
increasing to about US$52.6/barrel in would attract more investors into the
December 2016. The prices of oil sector and eventually increase the
equally received a boost from supply base.
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
Cocoa
In contrast to the upward movement in real effective term, the US dollar and
prices of fuel and metal items, cocoa the euro remained broadly unchanged
prices recorded a meltdown in 2016, while in the advanced countries the
plummeting to a 4-year low owing to Japanese Yen appreciated by about 10
abundant supply in the face of percent. The largest depreciation of
weakening demand. Cocoa price about 10 percent was recorded on
softened to $2,295.3 per metric ton pound sterling mainly due to the
during the period, the lowest level shocking Brexit vote. In the emerging
since March 2013. A bumper harvest market economies, Chinese reminibi
season from Ghana and Cote d‟ivoire continued to slide in value as it
which are the leading world producers depreciated by over 4 percent during
contributed to supply glut during the the period as a result of significant
period. Demand, on the other hand, capital outflow with the attendant loss
was not only constrained by weak of foreign reserves. The currencies of
recovery in global output but equally commodity exporting countries, like
by growing health consciousness on the Russian ruble, Brazilian real and
chocolate consumption among South African rand experienced
consumers, a slowdown in relative degree of appreciation during
discretionary spending, and marginal the period, reflecting the modest
product innovation. recovery in commodities prices and
strengthening of financial market
2.3.2 Developments in Exchange sentiments.
Rates
Relative to 2015, movements in 2.4 Implications for the WAMZ
exchange rates were mild in 2016. In 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

17
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 from the volatility in global

commodity prices.

E conomic performance in the External sector policy was mainly

WAMZ moderated in 2016, geared towards accretion of
mainly reflecting the drag in international reserves and maintaining
global commodity prices. Despite the exchange rate stability. Performance of
gradual turnaround in prices towards the external sector generally improved
the end of the year, this was however, in the review period with a reduced
insufficient to address the existing current account deficit compared to
macroeconomic imbalances, and some 2015. In aggregate terms, however, the
of the member states registered stock of international reserves for the
contraction in growth including Zone slightly declined to $33.6 billion
Nigeria, which accounts for almost as at end-December 2016 from $34.3
90.0 percent of the Zone‟s output. As billion in 2015, but increased in
such, the Zone-wide real GDP months of import-cover to 6.5 months
contracted by 0.8 percent in 2016 from from 5.2 months reflecting the decline
a growth of 2.6 percent in 2015. in imports. All the member countries,
except The Gambia and Guinea had
Price stability continued to be the adequate reserves to cover three
thrust of monetary policy in all the months of imports as set by the
Member States and in 2016, monetary criterion. Foreign exchange markets
policy stance across the zone was developments indicated that the
generally tight, to contain inflationary domestic currencies of all the Member
pressures. The Zonal average inflation States depreciated against the US
rate (end of period) increased to 16.7 dollar in 2016.
percent in the review period, from 10.4
percent in 2015, and all member states 3.2 The Gambia
except two recorded double-digit
inflation rates. Real Sector
Activities in the real sector were
Fiscal policy in member states broadly sluggish in 2016, as real GDP slowed
focused on fiscal consolidation and to 2.2 percent from a growth of 4.3
containing the deficit within the percent in 2015, owing to limited
prescribed WAMZ benchmark, in availability of foreign exchange, the
2016. The overall fiscal deficit adverse impact of the climate on
(including grants) for the Zone agriculture and the effect of the
increased to 2.0 percent of GDP in political impasse on tourism during the
2016 from 1.2 percent in 2015. Three high season. In terms of sectorial
of the member countries however, performance, agriculture grew at a
registered high deficits of 9.5 percent, lower rate of 0.5 percent in 2016
10.4 percent and 7.7 percent reflecting compared to 3.8 percent in 2015 due to
the decline in fiscal revenues resulting intermittent dry spells experienced

19
during the rainy season which increased by 4.8 percent to D7.0
invariably affected crop production. billion, higher than the outturn in 2015
The industrial sector contracted by 3.1 but as a percentage of GDP declined to
per cent compared to a growth of 8.2 16.2 percent, from 16.8 percent in
percent in 2015, resulting from 2015. Non-tax revenue, on the other
slowdown in construction, mining and hand, declined by 23.3 percent to
quarrying activities. The services D632.3 million and as a percentage of
sector, however, picked-up in the GDP decreased to 1.5 percent from 2.1
review period and grew by 5.1 percent percent in 2015. Grants disbursements
compared to 3.7 percent in 2015, (projects) amounted to D707.6 million
owing to improvement in all the sub- (1.6 percent of GDP), slightly lower
sectors. than the project grants of D722.3
million (1.8 percent of GDP) recorded
Figure 6: Gambia: Sectoral Growth in 2015.
Rates
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
Headline inflation trended upwards to increases in interest payments and
7.9 percent at end-2016 from 6.7 other charges. Capital expenditure also
percent as at end-2015, mainly driven increased to D2.6 billion in 2016 from
by rising food prices and the rapid D2.4 billion in 2015, but remained the
increase in the growth of monetary same in terms of percentage of GDP at
aggregates fueled by monetary 5.9 percent.
financing of the fiscal deficit. Food
inflation, which is the main driver of The overall budget balance, on cash
headline inflation, edged-up by 90 basis (including grants and
basis points to 8.8 percent in December discrepancy) was a deficit of D4.1
2016, while non-food inflation billion (9.5 percent of GDP) compared
decreased by 130 basis points to 3.3 to a deficit of D2.5 billion (6.3 percent
percent. of GDP) in 2015. Excluding grants, the
deficit stood at 11.2 percent of GDP
Fiscal Sector Developments compared with 8.1 percent in 2015.
Government fiscal operations for 2016 The overall budget deficit was
indicated that total revenue and grants financed predominantly by the banking
amounted to D8.3 billion (19.7 percent system (domestic source), and to a
of GDP) compared to D8.2 billion (20 lesser extent, from foreign sources.
.6 percent of GDP) in 2015. On the
domestic revenue front, there was a The stock of public debt increased to
slight increase of 1.7 percent to D7.6 D49.9 billion (114.9 percent of GDP)
billion in 2016, mainly owing to in 2016, from D40.5 billion (101.4
increase in tax revenue. Tax revenue percent of GDP) in 2015, driven

20
mainly by the growth in domestic debt. Similarly, the yield on the 91-day, 182-
Domestic debt constituted 60.1 percent day, and 364-day Sukuk-al-Salaam
of total debt in 2016, compared with (SAS) bills declined to 14.98 percent,
55.8 percent in 2015, and external debt 16.40 percent, and 18.14 percent in the
accounted for 39.9 percent as at end- review period relative to 17.58 percent,
December 2016, compared to 44.2 18.03 percent, and 21.83 percent
percent as at end December 2015. respectively in December 2015.
Additionally, the weighted average
Monetary Sector Developments inter-bank rate decreased from 17.58
Throughout 2016, the Central Bank of percent in December 2015 to 13.57
The Gambia maintained its policy rate percent in December 2016.
at 23.0 percent, implying a neutral
monetary policy stance. Money supply External Sector Developments
grew by 15.3 percent in 2016, relative There was significant improvement in
to a contraction of 0.9 percent a year the current account which recorded a
ago. The growth in money supply lower deficit of $80.3 million (8.1
during the period under review was percent of GDP), compared to $141.6
mainly attributable to the increase in million (12.4 percent of GDP) in 2015,
the banking system‟s net domestic owing mainly to a decline in the trade
assets (NDA), which more than offset deficit. The deficit balance on the
the decline in net foreign assets (NFA) merchandise trade declined to
of the banking system. NDA rose by US$203.6 million (20.6 percent of
21.2 percent relative to 14.8 percent GDP) in 2016 from US$250.0 million
growth in 2015 and net foreign assets (24.8 percent of GDP) in 2015,
(NFA) in contrast, declined by 35.1 reflecting the decrease in imports by
percent in the review period compared 18.3 percent, which more than
to 56.2 percent in 2015. outweighed the 9.1 percent increase in
exports. The surplus in the services
Reserve money growth at end-2016 account increased, the deficit in the
stood at 25.2 percent, largely reflecting income account also increased, while
growth of 30.4 percent in the net current transfers remained largely
domestic assets of the Central Bank. unchanged during the period.
On the other hand, the net foreign
assets of the Central Bank contracted The capital and financial account
significantly by 277.1 percent in 2016 surplus declined significantly by 30.3
compared to a contraction of 109.2 percent to US$73.0 million due to
percent in 2015. developments in the financial account
particularly other investments and to a
The yield on all short-dated lesser extent foreign direct investment.
government securities declined during The overall balance of payments
the review period. The yield on the 91- (BOP) indicated a deficit of $12.6
day, 182-day, and 364-day treasury million (1.3 percent of GDP) during
bills decreased from 17.65 percent, the review period, compared to a
18.08 percent, and 21.77 percent in deficit of US$ 41.3 million (4.6
December 2015 to 13.32 percent, percent of GDP) in 2015, as the
15.21 percent, and 16.81 percent in external sector pressures experienced
December 2016 respectively. in 2015 moderated.

21
Gross official reserves fell to a Inflation (end-period) moderated to
precarious low level of US$59.8 15.4 percent in 2016, from 17.7
million, equivalent to 2.4 months of percent in 2015, mainly influenced by
import cover, from US$76.0 million, non-food items in the first half and the
equivalent to 2.5 months of import base drift-effects in the second half of
cover. The Dalasi depreciated by 9.7 2016. Non-food inflation had remained
percent against the US dollar and 9.2 in double digits for over a decade
percent against the Euro and principally due to rising prices of
appreciated by 10.6 percent against the petroleum products, utility tariffs,
British Pound. energy crisis and depreciation of the
cedi.
3.3 Ghana
Fiscal Sector
Real Sector Fiscal outturn in the review period
Provisional estimates indicated that indicated that total revenue and grants
real GDP grew by 3.5 percent in 2016, increased to GHȼ33.7 billion (20.1
lower than the 3.8 in 2015, mainly on percent of GDP), from GHȼ32.1
account of poor performance in mining billion (22.9 percent of GDP), in the
and quarrying, especially oil and gas preceding year, on account of the new
production as well as water and tax policy measures introduced during
sewage. The services sector recorded the review period. Total domestic
the highest growth rate in 2016 of 5.7 revenue increased by 10.8 percent to
percent, followed by 3.0 percent GHȼ32.5 billion, on account of tax
growth in the agriculture sector and revenue increases. Tax revenue grew
then 1.4 percent in the industrial to GHȼ27.7 billion (16.5 percent of
sector. GDP) in 2016, compared to GHȼ24.4
billion (17.5 percent of GDP) in 2015.
The Service sector remained the largest Contrastingly, non-tax revenues
contributor to growth in the review declined to GHȼ4.8 billion (2.9 percent
period, and its share of GDP increasing of GDP), relative to GHȼ4.9 billion
from 54.4 percent in 2015 to 56.9 (3.5 percent of GDP) in 2015. Grants
percent in 2016. The Industrial sector also declined sharply by 57.6 percent
is the second largest contributor of to GHȼ1.1 billion (0.7 percent of
24.2 percent relative to 25.3 percent GDP), from GHȼ2.7 billion (1.9
attained in 2015.Agriculture remained percent of GDP) in the previous year,
the least contributor to GDP with its reflecting diminishing donor support
share declining to 18.9 percent in on account of Ghana attaining a
2016, from 20.3 percent in 2015. Middle Income Status.

Figure 7: Ghana - Sectoral Growth Total expenditure rose to GHȼ51.1

Rates billion (30.6 percent of GDP), relative
50.0 to GHȼ38.6 billion (27.6 percent of
GROWTH RATE

GDP) in 2015, attributable mainly to

increase in transfers and interest
(%)

0.0
payments. Current expenditure stood at
2008 2010 2012 2014 2016
GHȼ43.4 billion (26.0 percent of
-50.0 Agriculture Industry GDP), as against GHȼ31.5 billion
Services
YEAR

22
(22.5 percent of GDP), in the previous private sector. Reserve Money grew by
year. Capital expenditure amounted to 29.6 percent in 2016 relative to 24.2
GHȼ7.7 billion (4.6 percent of GDP), percent in 2015, due to increases in
compared to GHȼ7.1 billion (5.1 banks‟ reserves and currency outside
percent of GDP) in 2015. banks.

The overall fiscal deficit on As at end-2016, the 91-day

commitment basis including grants, (benchmark) treasury bills rate and the
increased to GHȼ17.4 billion, base rate declined to 16.1 percent and
representing 10.4 percent of GDP, 26.7 percent, from 21.9 percent and
compared to the 4.7 percent of GDP in 26.9 percent respectively in the
2015. The fiscal deficit, on preceding year, informed by the
commitment basis excluding grants, disinflationary trend. The average
deteriorated to GHȼ18.6 billion (11.1 savings rate fell to 6.05 percent from
percent of GDP), from GHȼ9.2 billion 6.08 percent in 2015. However,
(6.6 percent of GDP) in the previous commercial banks‟ average lending
year. The deficit was 83.3 percent rates increased to 31.2 percent, from
domestically financed and the 27.5 percent in 2015. These
remaining 16.7 percent, externally developments widened interest rate
financed. spread in the review period.

The total stock of public debt stood at External Sector

GHȼ121.7 billion (72.8 percent of The current account deficit improved
GDP), compared to GHȼ99.1 billion from a deficit of 8.3 percent of GDP in
(70.8 percent of GDP), in 2015. 2015 to 7.0 percent in 2016, owing to
External debt stock accounted for 56.5 improvement in the trade account. The
percent of the total public debt stock in trade deficit narrowed to US$1.8
2016, relative to 60.4 percent in 2015, billion (4.3 percent of GDP), from
while domestic debt accounted for 43.5 US$3.1 billion (8.5 percent of GDP) in
percent, relative to 39.6 percent in the 2015, as exports increased by 7.9
previous year. percent, to US$11.1 billion, while
imports declined by 4.1 percent to
Monetary Sector US$12.9 billion. The deficits in the
Bank of Ghana eased monetary policy services and income components of the
during the review period, reducing its current account widened to US$1.3
policy rate by 50 basis points to 25.5 billion (3.2 percent of GDP) and
percent at end-year 2016. Broad US$1.2 billion (2.9 percent of GDP)
money (M2+) growth slowed to 22.0 respectively in 2016. The surplus in
percent in 2016, from 26.1 percent in current transfers net, narrowed to
2015, mainly influenced by growth US$1.5 billion (3.6 percent of GDP) in
decline in NDA of the banking system. 2016, reflecting reduction in private
NFA grew by 34.6 percent to GHȼ15.0 transfers (remittances) by 39.8 percent.
billion in 2016, on account of inflows
of bonds issued and cocoa syndicated The capital and financial account
loan. NDA grew by 18.1 percent to recorded a lower surplus of US$2.8
GHȼ41.7 billion, mainly owing to billion (6.4 percent of GDP) in 2016,
increase in domestic credit to the compared to US$3.1 billion (8.4

23
percent of GDP) in 2015. The lower In terms of sectorial contribution to the
surplus is explained by a decline in 2016 growth, the secondary sector was
capital transfers and increased outflow the largest contributor (2.2 percent),
in other investments during the period. followed by the tertiary sector (1.8
The above developments resulted in percent), the primary sector (0.7
the overall balance of payments percent), and import duties and taxes
recording a surplus of US$0.25 billion (0.6 percent).
(0.6 percent of GDP) in 2016,
compared to a deficit of US$0.02 Figure 8: Guinea –Trends of sector
billion (0.04 percent of GDP) in 2015. growth rate
12.0

Gross external reserves increased to 10.0 9.6

8.5
US$4.9 billion (4.2 months of import), 8.0
7.1

Growth rate in %
from US$4.4 billion (3.6 months of 6.0

4.0 3.7 3.6

import) in 2015, on account of inflows 2.0

from cocoa syndicated loans, export 0.0

2011 2012 2013 2014 2015 2016

receipts and bonds issued. The cedi- -2.0

dollar exchange rate depreciated by 9.2 -4.0

-6.0 -5.2
percent in 2016, compared to a Primary sector Secondary sector Tertiary sector
depreciation of 15.7 percent in 2015,
mirroring the improvement in the With regards to price developments,
external sector. year-on-year inflation increased to 8.7
percent as at end-December 2016,
3.4 Guinea from 7.3 percent as at end-December
2015, mainly due to high food prices,
Real Sector depreciation of the Guinean franc and
In 2016, real GDP growth stood at 5.2 increase in VAT from 18 percent to 20
percent compared to 4.5 percent in percent.
2015, largely on account of sharp
recovery in the secondary sector, Fiscal Sector
which recorded a growth of 8.5 percent Government fiscal operations in 2016
in 2016 compared to a contraction of were characterized by significant
5.2 percent in 2015. Growth in the improvement in revenue mobilisation
secondary sector was driven by and better expenditure control.
increased performance in mining and
energy activities. Growth in the Total revenue and grants in 2016
primary sector however, declined to amounted to GNF 12,325.5 billion,
3.7 percent from 7.1 percent in 2015, representing an increase of 26.4
as a result of low performance in the percent, relative to 2015. As a
animal husbandry and forestry sub- percentage of GDP, total revenue and
sectors. Growth in the tertiary sector grants rose to 16.4 percent, from 14.9
also trended downwards to 3.6 percent percent in 2015. Domestic revenue
in 2016 from 9.6 percent in 2015, mobilised in 2016 increased by 26.7
mainly owing to significant decrease in percent to GNF 11,391.20 billion,
transportation reflecting deterioration mainly on account of increase in tax
in the road network. revenue. Tax revenue rose to GNF
10,929.6 billion (14.6 percent of GDP)

24
from GNF 8,579.0 billion (13.1 domestic debt, by 22.1 percent to GNF
percent of GDP) in 2015, partly as a 18,140.8 billion as at end- December
result of measures adopted in the 2016 2016.
budget bill, including tax raise on
excise duties and VAT. Similarly, non- Monetary Sector
tax revenue increased to GNF 461.6 The BCRG pursued tight monetary
billion from GNF 409.4 billion, but as policy stance during the review period,
a percentage of GDP it was maintained raising the Monetary Policy Rate
at 0.6 percent, same as in 2015. Grants (MPR) by 150 basis points to 12.5
increased to GNF 833.6 billion (1.1 percent, while the reserve requirement
percent of GDP) in 2016 from GNF ratio was maintained at 18 percent.
337.8 billion (0.5 percent of GDP) in Broad money supply (M2) grew by 9.9
2015. percent to GNF 19,394.61 billion in
2016, lower than the 20.3 percent
Total expenditure and net lending growth in the previous period. Net
declined by 12.9 percent to GNF Foreign Assets significantly increased
12,439.1 billion in 2016, representing by 69.0 percent, on account of
16.6 percent of GDP compared to 21.8 measures adopted by the Authorities to
percent in the previous year. Current facilitate the repatriation of revenue
expenditure decreased to GNF 8,582.1 from commodity exports. Net
billion (11.4 percent of GDP) from Domestic Assets (NDA) increased by
GNF 8,819.0 billion (13.4 percent) in 3.2 percent and credit to the private
2015. Capital expenditure also sector grew by 7.2 percent in 2016.
declined to GNF 3.682,1 billion (4.9
percent of GDP) from GNF4, 990.2 As at end 2016, the 91 days treasury
billion (7.6 percent of GDP) at the end bills yield rose to 14.94 percent from
of 2015. 12.03 percent, while both the savings
and lending rates decreased to 2.86
These developments culminated in an percent and 22.16 percent from 3.0
improvement in the overall fiscal percent and 22.46 percent respectively
balance. The fiscal deficit, on as at end 2015.
commitment basis, including grants,
was 0.2 percent of GDP, lower than the External Sector
6.9 percent recorded in 2015. In the In 2016, Guinea‟s current account
same vein, fiscal deficit on deficit worsened to 32.4 percent of
commitment basis excluding grants, GDP, from 11.6 percent in 2015,
decreased to 1.3 percent of GDP, from reflecting the deterioration in the trade
7.4 percent of GDP in the previous balance and services accounts. The
year. trade deficit significantly widened to
USD 2,015.1 million (23.8 percent of
Total public debt which accounted for GDP) during the review period from
46.6 percent of GDP as at end USD 410.6 million (4.7 percent of
December 2016 stood at GNF 34,954 GDP) in 2015, owing to the 102.1
billion, representing an increase of percent increase in imports, which
23.1 percent relative to December outweighed the 35.6 percent increase
2015. External debt rose by 20.8 in exports. The deficit posted in the
percent to GNF 16,813.2 billion and services account also increased further

25
to USD 655.9 million (1.0 percent of to a contraction of 11.0 percent in the
GDP) in 2016 from USD 425.0 million preceding year, on account of the
(0.8 percent of GDP) a year ago. On lingering adverse commodity price
the other hand, net transfers improved shocks which created disincentive to
from a deficit of USD 41.30 (0.46 invest in that sector. Expansion in the
percent of GDP) in 2015, to a surplus tertiary sector slowed to 3.9 percent in
of USD 80.8 million (0.95 percent of the year under review, compared to 4.3
GDP) in 2016. percent recorded in 2015. The primary
sector, however, recorded a remarkable
The capital account surplus declined improvement during the review period,
from USD 230.9 million (2.6 percent growing by 2.2 percent against 1.1
of GDP) in 2015 to USD 164.2 million percent in the corresponding period of
(1.9 percent of GDP) in 2016, 2015.
explained by the fall in project grants.
The financial account, however, posted Figure 9: Liberia – Trends in Sectorial Growth Rates
a significant increase in surplus of 50.0
40.0
USD 2,579.7 million (30.4 percent of Sectoral Growth Rates (%) 30.0
GDP) compared to USD 289.8 million 20.0
10.0
(3.3 percent of GDP) in 2015, mostly
0.0
due to an increase in foreign direct -10.0
investments. Against the developments -20.0
2011 2012 2013 2014 2015 2016
in the financial account, the overall Primary Secondary Tertiary
deficit improved considerably to USD
0.8 million (0.01 percent of GDP) in
2016, from USD 499.9 million (5.7 In terms of price developments, year-
percent of GDP) in 2015. on-year inflation (end-period)
increased to 12.5 percent, from 8.0
Gross external reserves increased to percent in the corresponding period of
USD 614.65 million in 2016, from 2015, due mainly to the pass-through
USD 456.41 million in 2015, but effects of exchange rate depreciation,
declined in months of import cover to liquidity injection (Liberian dollar) and
1.4 percent from 2.3 percent in 2015, an increase in bulk fuel storage cost of
owing to the substantial increase in petroleum products to US$0.50 per
imports. As at end December 2016, the gallon, from US$0.20 in the previous
Guinean franc depreciated by 13.2 period.
percent against the US dollar in the
official market and by 9.7 percent in Fiscal Sector
the parallel market. Total revenue and grants in 2016,
decreased to US$563.6 million (26.7
3.5 Liberia percent of GDP) from US$611.0
million (29.8 percent of GDP) in 2015.
Real Sector Tax revenue contracted by 2.0 percent
In 2016, real GDP contracted by 0.5 to US$382.0 million (18.1 percent of
percent from zero growth in 2015, due GDP) as at end-December 2016, from
to low performance of the secondary US$389.9 million (19.0 percent of
sector. The secondary sector GDP) in the corresponding period of
contracted by 16.6 percent, compared 2015, driven mainly by a decrease in

26
export tax, import tax and other tax The stock of public debt rose by 17.9
revenues. Non-tax revenue also fell to percent to US$785.6 million (37.2
US$146.9 million (7.0 percent of percent of GDP) in 2016, from
GDP) in December 2016, from US$657.7 million (32.0 percent of
US$173.0 million (8.4 percent of GDP) in 2015, attributable to
GDP) in December 2015, largely ratification of previously signed loan
driven by decline in administrative agreements by the Liberian National
charges and duties as well as other Legislature. The proportion of external
receipts, contingency and borrowing. debt to public debt increased to 64.6
Grants decreased to US$34.7 million percent in 2016, from 58.7 percent in
in December 2016, from US$48.1 2015, while the proportion of domestic
million in the corresponding period of debt fell to 35.4 percent from 41.3
2015, partly due to unwinding of percent.
Ebola-related support.
Monetary Sector
Total expenditure and net lending During the review period, the
decreased to US$516.8 million (24.5 Monetary Policy thrust of the Central
percent of GDP), compared to Bank of Liberia (CBL) focused on the
US$578.4 million (28.2 percent of maintenance of price stability through
GDP) in the previous year, mainly exchange rate stability. Broad money
owing to reforms instituted by the growth slowed to 10.0 percent in 2016,
Government of Liberia, such as travel from 12.9 percent in 2015. The
ordinance and fiscal rules which slowdown resulted mainly from Net
engendered substantial savings. Domestic Assets (NDA) which grew
Recurrent expenditure decreased by by 5.6 percent as against 42.0 percent
20.5 percent to US$481.9 million (22.8 in 2015. On the other hand, Net
percent of GDP) in 2016, from Foreign Assets (NFA) recorded a
US$527.1 million (25.7 percent of growth of 13.5 percent during the
GDP) in 2015, on account of a 4.4 review period, compared to a
percent decrease in wages and salaries, contraction of 2.8 percent in 2015.
goods, services and transfers as well as Credit to the private sector increased
the Government‟s expenditure by 18.5 percent to L$42,885 million
rationalisation measures. (20.6 percent of GDP) in 2016, from
L$36,183 million (19.9 percent of
Reflecting the reduction in GDP) in 2015, due mainly to limited
expenditure, the overall fiscal balance borrowing by government and reduced
(including grants) remained in surplus, interest rate by 0.1 percentage point to
increasing to US$46.9 million (2.2 13.5 percent in December 2016, from
percent of GDP) in 2016, from 13.6 percent in December 2015.
US$32.6 million (1.6 percent of GDP) Reserve money grew by 14.7 percent,
in 2015. Fiscal balance (excluding compared to a contraction of 1.4
grants) also improved to a surplus of percent in 2015, reflecting growth in
US$12.1 million (0.6 percent of GDP) both currency outside banks and bank
from a deficit of US$15.5 million (0.8 reserves.
percent of GDP) in 2015.
Movements in interest rates showed a
modest downward trend during the

27
review period. The average benchmark US$967.4 million (47.1 percent of
T-bill rate declined to 3.2 percent, GDP) in 2015.
from 3.8 percent in 2015, while
commercial banks‟ average lending The overall balance of payments
rate declined to 13.6 percent, from 13.7 recorded a surplus of US$182.8
percent in 2015. The average interest million (8.7 percent of GDP) in 2016,
rate on time deposits (12 month) fell to compared to US$182.2 million (8.9
3.9 percent in 2016, from 4.1 percent percent of GDP) in 2015.
in 2015, whilst the rate on savings Gross external reserves increased by
deposit remained unchanged at 2.0 5.3 percent to US$536.3 million in
percent. 2016 (3.3 months of imports-cover),
from US$509.3 million (2.3 months of
External Sector imports-cover) in 2015. The
External sector performance was improvement was due to the
mixed during the review period. The Government of Liberia‟s policy on
current account deficit narrowed to reserves accretion under the Extended
US$325.4 million (15.4 percent of Credit Facility (ECF) program, where
GDP) in 2016, from US$852.3 million there was no sale of foreign exchange
(41.5 percent of GDP) in 2015, largely for the second quarter in 2016. The
on account of improvement in the trade Liberian dollar depreciated by 13.7
balance. The trade deficit declined to percent against the US dollar, and
US$1040.7 million (49.3 percent of stood at L$102.5 in 2016, partly on
GDP) in 2016, from US$ 1286.1 account of the injection of Liberian
million (62.7 percent of GDP) in 2015, dollars by Government.
as a result of the decline in imports,
which more than outweighed the drop 3.6 Nigeria
in exports. Exports declined by 36.0
percent to US$ 169.6 million due to Real Sector
weak international prices and lower Real output growth contracted by 1.5
production of the country‟s major per cent in 2016, compared to the 2.8
export commodities. Similarly, imports percent growth recorded in 2015. The
fell by 22.0 percent to US$1210.3 contraction in growth, which was the
million, attributable to the withdrawal first in many years, can be attributed to
of United Nations Mission in Liberia the low price of crude oil, production
(UNMIL) as well as lower world cuts in oil output due to insecurity and
market prices of petroleum products. vandalism of oil and gas infrastructure,
structural constraints, and the late
The services account net fell by 37.3 passage and implementation of the
percent to US$473.4 million in 2016. 2016 budget. The non-oil sector
Similarly, income fell by 35.9 percent contributed 0.22 per cent to the
to US$252.7 million, due to debt contraction in output growth in the
service and current transfers net fell by review period, and the rest was
8.9 percent to US$1,441.5 million contributed by the oil sector.
reflecting lower remittance flows. The Agriculture was the only sector that
capital and financial account recorded contributed positively by 0.95 per cent
a deficit of US$951.8 million (45.1 to real GDP in 2016. This can be
percent of GDP) in 2016, compared to attributed to growth in crop

28
production, boosted by improved mobilized in 2015. Tax revenue (net),
security in the north eastern part of the accounting for 36.3 percent of total
country, favourable weather conditions revenue in 2016, was ₦1,537.0 billion
and effective implementation of the (1.5 percent of GDP), higher than the
N20 billion CBN Anchor Borrower‟s ₦1,482.7 billion (1.6 per cent of GDP)
Programme. in 2015. Non-tax revenue (i.e. net oil
revenue to Federation account) which
Figure 10. Nigeria – Real GDP accounted for 63.7 percent of total
growth and inflation rates 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
Headline inflation doubled to 18.6 cent of GDP), higher by 7.8 per cent
percent at end-December 2016, from when compared to ₦4,767.4 billion
the 9.6 percent recorded in the (5.1 per cent of GDP) in 2015. The
corresponding period of 2015, being recurrent expenditure of the Federal
the highest level since 1994. Further Government amounted to ₦3,878.0
examination of the inflation data show billion, representing 75.4 percent of
that the pressures stemmed from both total expenditure, and higher by 7.4
core and food components, as they percent compared to 2015. Interest
increased to 18.1 percent and 17.4 per payments accounted for 26.9 per cent
cent from 8.7 percent and 10.6 percent of total expenditure and grew by 30.6
respectively in the corresponding per cent to ₦1,384.9 billion in 2016,
period of 2015. The rising inflationary attributable to both increase in
pressure was largely a reflection of domestic interest rates and government
structural factors, including high cost borrowing to finance the
of electricity, transport, and inputs, as implementation of the budget due to
well as higher prices of both domestic contraction in revenues.
and imported food products. The other Capital/Investment expenditure which
contributory factor is the insurgency in accounted for 17.9 per cent of total
the North-eastern part of the country, expenditure grew by 12.4 per cent to
which stifled economic activity in the ₦918.8 billion.
affected areas.
Overall, fiscal operations led to a
Fiscal Sector deficit of ₦2,193.3 billion (2.2 percent
In 2016, total revenue garnered was of the GDP) in 2016, compared to the
₦4,232.4 billion (4.2 per cent of GDP), deficit of ₦1,557.8 billion (1.7 percent
higher by 5.9 per cent from the of GDP) in 2015. The deficit was
₦3,994.5 billion (4.2 percent of GDP) financed entirely from domestic

29
sources, largely by borrowings from geared towards building confidence in
the non-bank public (FGN domestic the economy.
bonds) and drawdown on government
deposits with the central bank. Others Broad money (M2) grew by 18.4
were privatization proceeds, percent in 2016, which was slightly
securitization and borrowings from lower than the growth of 19.1 percent
special accounts. in 2015. Net foreign assets and net
domestic assets grew by 57.3 percent
Nigeria‟s total outstanding public debt and 3.2 percent compared to -12.6
as at end-December 2016 stood at percent and 49.7 percent, respectively,
₦16,251.0 billion (16.0 percent of in 2015. The growth of NFA was due
GDP), which increased by 48.4 per to the 53.9 percent increase in foreign
cent over the ₦10,948.4 billion (11.6 assets of the central bank and the
percent of GDP) debt stock in 2015. growth of NDA was mainly due to
Domestic debt accounted for 68.0 growth in credit to the private sector by
percent of the total outstanding public the deposit money banks, which
debt, while external debt was 32.0 contributed 15.1 percent to the growth
percent. External debt stock more than of broad money. Reserve money
doubled by 145.9 percent to ₦5,192.8 contracted by 5.5 percent in 2016,
billion (3.4 percent of GDP), largely higher than the 2.0 contraction in 2015.
on account of borrowing from bilateral
and multilateral institutions, as well as Interest rates generally trended
the international capital market. upwards in all segments of the money
Domestic debt stock grew by 25.1 market in the period under review, as
percent to ₦11,058.2 billion (10.9 there was significant increase in money
percent of GDP) in 2016, compared to market rates following the increase in
₦8,837.0 billion (9.4 percent of GDP) the monetary policy rate in March
in 2015. from 11.0 percent to 12.0 per cent by
the monetary authority and then to 14.0
Monetary Sector per cent in July. The interbank rate
The Central Bank of Nigeria adopted a (IBR) experienced the highest increase
tight monetary policy stance during the as it rose from 2.75 per cent in January
review period. The Monetary Policy and peaked at 29.81 per cent in
Rate (MPR) was increased to 14.0 per October before trending down to 11.62
cent in 2016 from 11.0 percent in per cent in December 2016. The
2015, aimed at ensuring price stability. increase was attributed in part, to the
The asymmetric corridor was narrowed introduction of the flexible foreign
from +2.0/-7.0 percent to +2.0/-5.0 exchange framework, and the mop up
percent around the MPR, intended to of naira liquidity due to increased sale
encourage lending amongst DMBs. of foreign exchange by the CBN in the
Cash reserve requirement (CRR) was month of June 2016. As a result, there
increased from 20.0 percent to 22.5 was a decline in the volume of activity
percent for both public and private in the inter-bank market, owing to
sector funds, while the minimum injections by Federation Account
liquidity ratio (LR) remained at 30.0 Allocation Committee (FAAC) and
percent. The above measures were maturity of some CBN securities.

30
External Sector by 55.3 per cent to a deficit of US$4.7
The current account balance improved billion in 2016, from a deficit of
in the review period to a surplus of US$9.34 billion in the corresponding
US$2.72 billion (0.8 percent of GDP) period of 2015, mainly on account of
from a deficit of US$15.44 billion (3.2 financing of trade credits.
percent of GDP) in 2015, due to
improvement in all of its four External sector performance improved
components. Export receipts dropped in 2016 as the deficit in the overall
by 24.4 percent to US$34.70 billion, balance declined to US$ 0.98 billion
due to the sustained low price of oil at (0.2 percent of GDP) from US$ 5.85
the international market, production billion (1.2 percent of GDP) recorded
shortfalls caused by vandalism of oil in 2015, reflecting the improvement in
and gas installations, as well as the the current account and financial
drastic drop in non-oil exports. In the account balances.
same vein, import bill fell by 32.7
percent to US$35.24 billion from Gross external reserves declined by 4.6
US$52.33 billion in 2015, attributable percent to US$26.99 billion at end-
to the fall in non-oil imports by 40.0 December 2016, from US$28.28
percent, leading to improvements in billion in the corresponding period of
trade balance. Similarly, services (net) 2015, due to low prices of oil and the
fell by half to US$8.01 billion, and utilization of available reserves to
income (net) fell by 32.2 per cent to intervene in the foreign exchange
US$8.62 billion. However, the current market in order to stabilize the value of
transfers (net) was in surplus in both the naira. However, in months of
2015 and 2016, occasioned by the imports-cover, gross external reserves
sustained inflow of workers‟ increased to 8.2 months from 5.8
remittances. The surplus recorded in months recorded in 2015, largely on
the current transfers (net) fell slightly account of the significant decline in
by 1.4 per cent to US$19.89 billion imports. As at end December 2016, the
from the 2015 level of US$20.17 naira weakened across the two
billion. segments of the market, with the
exchange rate at the interbank market
The financial account recorded a net segment depreciating by 35.5 per cent
incurrence of liabilities of US$ 1.65 to ₦305.0/US$, against ₦197.0/US$ in
billion (0.4 per cent of GDP) in 2016 the corresponding period of 2015.
from a net acquisition of financial
assets of US$ 1.03 billion (0.2 per cent 3.7 Sierra Leone
of GDP) in 2015. This was mainly on
account of increased surpluses in direct Real Sector
and portfolio investments (net). There Real output growth recovered
was tremendous increase in investment gradually from the two exogenous
flows, as surpluses in direct and shocks, recording an estimated 6.1
portfolio investments almost doubled percent growth in 2016, compared to
by 93.0 percent and 99.2 per cent to the contraction of 20.6 percent in 2015.
US$3.14 billion and 1.71 billion in the The growth was induced by the
review period. However, other resumption of iron ore mining, coupled
investments (net) significantly dropped with upward movement in global

31
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, ratio (RRR), however, remained
due mainly to increased recurrent unchanged at 12.0 percent. Broad
outlays. Recurrent expenditure rose by money (M2) grew by 16.5 percent in
26.7 percent to Le3.55 trillion, driven 2016 compared to 11.3 percent in
largely by increased spending on goods 2015, largely due to an expansion in
and services and the high wage bill. the growth of NFA of the banking
Similarly, total interest payments on system. The NFA expanded by 5.8
government debt increased by 15.6 percent in 2016 compared to
percent to Le201.81 billion, on account contraction of 1.1 percent in 2015, due
of higher interest rates on both mainly to the accumulation of foreign
domestic and foreign debt instruments. assets which more than outweighed the
Capital expenditure also scaled up by drop in foreign outflows. NDA
26.2 percent to Le2.04 trillion from however decelerated to 31.7 percent
Le1.62 trillion in the preceding year. compared to 35.4 percent in 2015.
Reserve Money (RM) growth
The overall budget deficit excluding increased to 24.5 percent from 10.4
grants increased to Le2.55 trillion percent a year ago.
(10.7 percent of GDP) in 2016 from
Le2.09 trillion (9.7 percent of GDP) in Domestic money market rates
2015. Fiscal deficit including grants generally increased while commercial
rose to Le1.82 trillion (7.7 percent of banks rate (deposits and lending)
GDP) from Le0.92 trillion (4.3 percent declined. The 91-day treasury bills rate
of GDP) in 2015. The deficit was increased to 9.38 percent as at end-
financed mainly from the banking December 2016 from 1.08 percent at
system. end-December 2015, while the rate for
the 182-day bills rose to 16.17 percent
Total public debt stood at Le13.14 from 3.12 percent at end-December
trillion (55.1 percent of GDP) as at 2015. Interest rate on the 364-day bills
end-December 2016 compared to also scaled up to 30.22 percent from
Le9.7 trillion (45.4 percent of GDP) as 9.91 percent at end-December 2015.
at end-December 2015. External debt The rise in the rates was mainly due to
increased by 9.6 percent to US$1,356.5 increased government borrowing from
million as at end-December 2016 while the domestic money markets. The
domestic debt rose by 22.7 percent to average savings rate droped to 2.38
Le3.37 trillion. percent at end December 2016 from
2.54 as at end-December 2015, while
Monetary Sector the average lending rate on overdraft
The BSL increased its monetary policy fell slightly to 21.35 percent from
rate (MPR) twice in the review period, 21.46 percent as at end-December
from 9.5 percent to 10.5 percent in 2015
September 2016 and 11.0 percent in
December 2016, signaling a tight External Sector
monetary policy stance. Also, the BSL External sector performance improved
introduced a corridor around the MPR in the review period. The current
in a bid to boost liquidity management account deficit declined to US$428.6
and enhance the effectiveness of million (11.3 percent of GDP) from
monetary policy. The required reserve US$741.8 million (17.5 percent of

33
GDP) in 2015, mainly on account of import) as at end December 2016 from
improvement in the services account, US$580.26 million (4.6 months of
reduction in import payments as well imports) as at end-December 2015,
as increased export receipts. The trade largely attributable to a reduction in
deficit narrowed significantly to donor inflows as well as the drawdown
US$341.80 million (9.0 percent of on reserves by BSL to smoothen the
GDP) from US$765.20 million (18.0 volatility of the exchange rate. The
percent of GDP) in 2015, largely due months of import cover increased due
to increased export receipts, especially to the decline in the import bill. The
mineral exports and the huge reduction pressure on the domestic currency
in the import bill. Exports increased by continued with the leone depreciating
15.2 percent to US$669.9 million in by 21.6 percent against the US dollar
the review period, while imports in 2016 from 12.2 percent in 2015.
declined by 24.9 percent to
US$1,011.7 million, as Ebola-related 3.8 Status of Macroeconomic
goods and services imports decreased Convergence Based on the Revised
along with import of fuel products. ECOWAS Criteria
The deficit registered in the services Member states were assessed based on
account, declined to US$422.6 million the fulfillment of four primary criteria
in 2016 from US$452.7 million in and two secondary criteria as pre-
2015, indicating an improvement. requisites for monetary union. The
Current transfers (net), however, primary criteria comprised single digit
deteriorated, as the surplus declined to inflation rate, fiscal deficit (including
US$335.8 million in 2016 from grants) of not more than 3.0 percent of
US$476.1 million in 2015. GDP, central bank financing of fiscal
deficit of not more than 10 percent of
The capital account recorded a surplus previous year‟s tax revenue; and gross
of US$68.6 million (1.8 percent of external reserves of not less than 3.0
GDP) in 2016, which was lower months of import cover. The secondary
compared to the surplus of US$134.5 criteria consist of; Exchange Rate
million (3.2 percent of GDP) in 2015, Variation within the range of ±10%
reflecting a significant drop in capital and Public Debt to GDP ratio of not
transfers. The financial account also more than 70 percent.
remained in surplus, increasing further
to US$378.2 million (10.0 percent of Performance on the convergence scale
GDP) in 2016 from US$364.1 million revealed that none of the six member
(8.6 percent of GDP) in 2015, states of the WAMZ met all four
principally due to increased net direct primary convergence criteria. Guinea,
investment flows. On the whole, the Liberia and Nigeria satisfied three
overall balance of payments (BOP) each, while The Gambia, Ghana and
deficit improved to US$68.8 million Sierra Leone satisfied one of the
(1.8 percent of GDP) in the review primary criteria, each. The Gambia
period compared to US$104.9 million met the criterion on single digit
(2.5 percent of GDP) in 2015. inflation (end period) (6.7%) but
missed out on the fiscal deficit as a
Gross external reserves declined to percentage of GDP, central bank
US$503.8 million (5.3 months of financing of fiscal deficit as a

34
percentage of the previous year‟s tax inflation. Sierra Leone achieved only
revenue and gross external reserves in one of the primary criteria: gross
months of import cover. Ghana external reserves in months of import
satisfied the criterion on external cover (5.3 months) but defaulted on the
reserves in months of import cover single digit inflation, central bank
(4.2), while defaulting on the single financing of fiscal deficit and fiscal
digit inflation, fiscal deficit, including deficit including grants as a percentage
grants as a percentage of GDP and of GDP.
central bank financing of fiscal deficit.
Guinea attained three of the criteria Member states performance based on
namely; single digit inflation (8.7%), the Secondary convergence criteria
fiscal deficit as a percentage of GDP indicated that each member state met
(0.2%) and the criterion on central one of the two criteria (Exchange Rate
bank financing of fiscal deficit (1.9%) Variation and Public Debt as a
but failed to achieve the threshold on percentage of GDP). The Gambia and
months of import cover. Liberia Ghana fulfilled the criterion on
fulfilled three primary convergence exchange rate variation (9.7 percent)
criteria namely; fiscal deficit including and (9.2 percent) respectively, but
grants as a percentage of GDP (-2.2%) missed out on the public debt as a
central bank financing of fiscal deficit percentage of GDP. On the other hand,
(0.0%) and gross reserves in months of Guinea, Liberia, Nigeria and Sierra
import cover (3.3 months), while Leone satisfied the criterion on public
missing out on single digit inflation debt as a percentage of GDP; (46.6%),
(12.5%). Nigeria met three primary (37.2%), (16.0%) and (55.1%),
criteria: fiscal deficit including grants respectively, but defaulted on the
as a percentage of GDP (-2.2%), exchange rate variation criterion.
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
 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, Scheme also contributed to the
either improved upon or maintained improved implementation of the
their status of compliance with the Scheme.
ECOWAS trade-related protocols,
relative to the previous year. The However, in the WAMZ, the
Zone‟s compliance rose by 3.4 compliance index score on ETLS
percentage points to 68.9 percent, from remained unchanged at 54.2 percent
65.5 percent in 2015, due to progress compared with the previous year. All
made by Ghana, Nigeria and Sierra the WAMZ Member States recorded
Lone, on various aspects of the trade no change in the ETLS compliance
integration protocols, while The index score. In order to improve intra-
Gambia, Guinea and Liberia sustained regional trade flows by removing
their status of compliance. obstacles and encourage Member
States to implement the Scheme, a
4.2.2 ECOWAS Trade Liberalisation Task Force on the free movement of
Scheme (ETLS) goods within ECOWAS was
All the WAMZ Member States except established in May 2016, by the
Liberia , continued to implement the ECOWAS Commission, to monitor
ETLS during the period under review. implementation of the Scheme and
As at end 2016, a total of 23 address issues that may arise.
enterprises had registered in The
Gambia. The total number of 4.2.3 ECOWAS Common External
companies that had registered in Ghana Tariff (CET)
was 430 in 2016. Guinea had Ten of the fifteen Member States of
registered a total of 18 enterprises ECOWAS, including two of the
since the commencement of the WAMZ Member States were
Scheme, while a total of 14 enterprises implementing the CET in 2016.
have been registered in Sierra Leone. Nigeria continued implementation in
Nigeria has so far registered 1,734 the review period, after introduction of
enterprises. the regime in 2015. Ghana commenced
implementation in 2016. The Gambia,
Generally, participation in the Scheme Guinea, and Liberia introduced the
across the region improved in 2016, CET in 2017, while Sierra Leone
relative to the previous year, continued to make preparations during
characterised by increased number of the year under review for the eventual
approvals and fewer complaints across introduction of the CET.
ECOWAS. A total of 90 companies
and 273 industrial products were The Zone‟s compliance index score on
approved in the region during the CET rose to 70.8 percent, from 68.8
period under review. The increased percent in the previous year, due to the
number of approvals was on account of commencement of Ghana‟s full
enhanced sensitisation and implementation of the scheme in the
simplification of application process. review period. The performance of the
Bilateral cooperation between the rest of the Member States remained the
Member States as well as the efforts of same, relative to the previous year. The
the Presidential Task Force in Gambia scored 62.5 percent, Guinea
resolving disputes relating to the 75.0 percent, Liberia 12.5 percent,

37
Nigeria 100.0 percent and Sierra Leone and Liberia 12.5 percent each, while
75.0 percent. Sierra Leone Scored 87.5 percent.

Ghana and Nigeria were the best The Joint Border Posts (JBP)
performers on the CET in the WAMZ. programme, which aims at bringing
During the review period, the two border officials together to undertake
countries commenced the application one-stop controls at the land borders
of supplementary protection measures, between Member States was on-going.
which aim at correcting the crowding Noepe JBP (between Ghana and Togo)
out of local products by excessive Since the completion of the
imports from third countries. The rest construction of the Noepe Joint Border
of the WAMZ Member states were Post (JBP) between Ghana and Togo
making efforts to commence and its handing over to the two
implementing the CET. countries, the facility has not yet been
put to use due to lack of equipment.
Following the adoption and the
subsequent implementation of the CET Seme-Krake JBP (between Benin &
by most Member States in the region, Nigeria)
efforts are now focused on making the The Construction of the Seme/Krake
emerging customs union effective Joint Border Post (JBP) between
through the formulation of a strategy Nigeria and Benin is on-going with
for enhanced implementation of CET. works 97 percent completed as at the
end of September, and final
4.2.4 Convention relating to Inter- completion was expected by the end of
State Road Transit (ISRT) of Goods October, 2016.
Implementation of the ECOWAS
Regional Road Transport and Transit Noe-Elubo JBP (between Ghana and
Facilitation Programme, including the Cote d’lvoire)
ECOWAS Joint Border Posts (JBP), The engineering design and tender
continued to be affected by several documents were being review to
challenges including weak financial enable works to begin soon on the
position of national guarantors, non- Noe-Elubo Joint Border post between
recognition of the logbook by some Ghana and Cote d‟Ivoire.
countries, lack of weigh bridges,
among others. 4.2.5 Free Movement of Persons,
Right to Reside and Establish
The Zone‟s compliance index score on The protocol on the right to move
ISRT improved to 52.1 percent in freely, reside and establish in any
2016, from 45.8 percent in 2015, ECOWAS country is being observed
underpinned by improvements by all Member States of the WAMZ.
recorded in Nigeria and Sierra Leone. With regard to free movement of
The rest of the Member States of the persons, all WAMZ Member States
WAMZ maintained their performances have adopted the common ECOWAS
in the review period, relative to the passport, waived visa requirement and
previous year. The Gambia scored 62.5 grant 90-day stay without resident
percent, Ghana 100.0 percent, Guinea permit for all ECOWAS citizens.
However, resident permit fees are

38
being charged and applied unevenly Integrated Custom Information System
across the Zone. The newly introduced (NICIS). However, customs clearance
ECOWAS biometric identity card, procedures are yet to be harmonised,
which is expected to replace the travel awaiting the finalisation of a regional
certificate, has not yet been applied in customs code. In the interim, the
any WAMZ Member State, except in Member States‟ clearance procedures
Ghana, where a national biometric have been harmonized with that of
identity card has been introduced. As World Customs Organization (WCO).
regards the right to establish, the The Zone‟s compliance index score on
protocol is applied selectively and this programme area was maintained at
according to national laws of the 83.3 percent in 2016, compared with
respective Member States. 2015. All the Member States sustained
the previous year‟s index core and
The Zone‟s compliance index score on ranking. The Gambia, Ghana and
this protocol improved to 71.7 percent, Nigeria scored 100.0 percent each,
compared to 70.0 percent in the Guinea and Liberia scored 75.0 percent
previous year, influenced by the each, while Sierra Leone scored 50.0
introduction of national biometric percent during the period under
identity card in Ghana. The review. The leading performers were
compliance index score of Ghana on The Gambia, Ghana and Nigeria.
this protocol rose to 60.0 percent in the
review period, relative to 50.0 percent 4.2.7 Harmonisation of Indirect
in the previous year. However, the Taxes
performance of the rest of the Member The Gambia, Ghana, Guinea, Nigeria
States of the WAMZ remained flat. and Sierra Leone applied Value Added
The Gambia scored 60.0 percent, Tax (VAT). The VAT rates, however,
Guinea 90.0 percent, Liberia 50.0 differ across the zone: The Gambia (15
percent, Nigeria 90.0 percent, and percent), Ghana (17.5 percent), Guinea
Sierra Leone 90.0 percent. (18.0 percent), Nigeria (5.0 percent)
and Sierra Leone (15.0 percent). In
4.2.6 Harmonised Documentation Liberia, the passage of the VAT Bill,
and Automated Customs Clearance which was intended to replace the
Procedures Goods and Services Tax (GST), was
Customs clearance procedures have awaiting legislative approval.
been automated and deployed to major
ports across the Zone. With the 4.2.8 ECOWAS Quality Programme
exception of Ghana and Nigeria, which and Standards Harmonisation
operate on advanced automated All the WAMZ Member States
platforms, the Automated System of continued to participate in the
Customs Data (ASYCUDA) is being ECOWAS Quality Programme and
widely applied in the rest of the Standards Harmonisation. Forty-five
WAMZ Member States. products, mainly food items, were
identified for harmonisation under the
The Gambia, Sierra Leone, and Guinea ECOWAS Quality Programme and
adopted ASYCUDA++, Liberia uses Standards Harmonisation. The
ASYCUDA World, while Ghana uses programme was launched in The
GCnet and Nigeria adopted an Gambia and training was on-going.

39
Guinea‟s compliance with the regional 4000 km of roads of which 1600km is
standards was affected by poorly paved, representing 40.0 percent. In
equipped laboratory. In Liberia, a Liberia, the total length of road is
Standards Authority has not yet been estimated at 11,535Km, of which
set up, but a National Standards 983Km is paved, representing 8.5
Laboratory has since been established. percent of total roads. The total length
Sierra Leone has adopted 133 out of of roads (federal roads) in Nigeria is
the 250 standards of the International estimated at 33,801.1 km in 2015, of
Standards Organisation (ISO) and the which the paved portion is estimated at
African Regional Standards 29,424.6 km, representing 87.05
Organisation (ARSO). A Product percent of total roads. The total length
Certification scheme had been of roads in Sierra Leone is 11,300 km,
established and a quality mark for all of which 1,372 km are paved,
products that meet the approved representing 12.14 percent of total
standards was being developed. roads.

4.2.9 Economic Partnership • Railways

Agreement (EPA) The Gambia has no railway line, but
Economic Partnership Agreement plans are underway for the
(EPA) between the European Union development of a rail network in the
(EU) and Economic Community of country. In Ghana, the authorities had
West African States (ECOWAS) has developed a Railway Master Plan to
been signed by all WAMZ Member further develop railways
States except, The Gambia and transportation. To this end, Ghana
Nigeria. While efforts are being made Railway Development Authority has
to encourage them to accede to the reconstructed the Sekondi-Takoradi via
Agreement, the ECOWAS Kojokrom section of the Western Line
Commission has embarked on a to provide suburban passenger rail
number of priority activities to prepare transport service between Sekondi and
ECOWAS region for the eventual Takoradi. In Guinea, a feasibility
implementation of the Agreement. study was undertaken for the
construction of the Conakry-Kankan-
4.2.10 Infrastructure for Regional Bamako railways. Liberia has three
Development railway lines, of which one is
functional and used for transporting
Transport Modes iron ore. One stretches from Bomi to
free port of Monrovia, the second is
• Roads from Sanniquellie to the port of
The total length of roads in The Buchanan and the third is from Bong
Gambia is estimated at 1,413.2 km, of mines to the free port of Monrovia.
which the paved portion is 435.6 km, Nigeria had a total route length of
representing 30.8 percent of total 3,692.5 km of narrow gauge rail lines
roads. In Ghana, the total length of as at end-June 2016. The construction
roads comprising trunk, feeder and of the first standard gauge railway
urban, is estimated at 72,380.65 km, of modernization project linking Abuja to
which total paved is 16,998.32 km, Kaduna, spanning 187.5km with nine
representing 23.48 percent. Guinea has stations was completed and

40
commissioned, and commencement of has boosted energy supply in the
the Minna-Kaduna intercity mass country. In Liberia electricity
transit train service. The only railway generation rose to 16.1 million
in Sierra Leone is about 198 kilometres kilowatts as at end June 2016, from
and is predominantly used to transport 15.6 million kilowatts in the
iron ore. corresponding period of the previous
year, due to the commissioning of two
• Aviation additional Heavy Fuel Oil (HFO)
All the WAMZ Member States power plants. In Nigeria, total
remained committed to the electricity generated was estimated at
Yamoussoukro Open Skies declaration 3500MW, compared to 3,441.9 MW in
and have liberalised their aviation 2015. The available capacity was
industry to facilitate the introduction of estimated at 5300MW, while the
new airlines. None of the Member installed capacity was estimated at
States of the WAMZ has a national 12048.4 MW. In Sierra Leone, power
carrier. They rely on private operators. generated during the review period was
The volume of passenger traffic estimated at 298.6 GW/hr, compared to
between the Member States of the 255 GW/hr in 2015. Total installed
WAMZ is constrained by limited capacity dropped to 112.5 MW, from
connectivity, among other issues. 128.7 MW in the previous year, while
available capacity increased to 106.54
Electricity and Telecommunications MW, from 100.5 MW.
• Electricity
• Telecommunications
The ratio of electricity generated to
The telephone network coverage in
installed capacity in The Gambia fell
The Gambia is about 97 percent, and it
to 28.90 in 2016, from 30.40 in 2015.
is mainly mobile network. The
In Ghana, the energy situation has
telephone penetration is about 120
improved in 2016, compared to the
percent, while the internet penetration
previous year due to the introduction
is about 28 percent. Ghana has
of fast track power plants such as
sufficient telecommunication
AMERI plant with a capacity of 250
infrastructure that supports 4G value
MW, VRA KTT of 220MW, Asogli
added services and innovation. The
upgrade by 160MW, AKSA of 170
total number of mobile voice
MW and repair of broken down plants.
subscriptions in the country increased
The power deficit of 700MW at end of
from 35.0 million as at end-December
2015 had been eliminated completely.
2015, to 38.3 million in 2016. The
At end-year 2016, the installed
penetration rose by 9.42 percent
capacity had been increased to
resulting in total penetration rate in the
4000MW, from 2900MW in 2015. In
period under review to 136.34 percent.
2016, the total electricity generated
The number of mobile users in Guinea
was 13,022 GWh of which 11,418
reached 10.597 million, at a
GWh was consumed.
penetration rate of 97.0 percent in
2016. Mobile telephone coverage in
In Guinea, the newly completed Kaleta
Liberia is estimated at 85.6 percent of
dam project within the framework of
the population and internet access at
The Gambia River Basin Project
32.4 percent. In Nigeria, total number
(OMVG) with a capacity of 240 MW

41
of active lines grew to 154.53 million, regards digital commerce. The
from 151.02 million in 2015. National Payment Switch currently has
Teledensity increased to 110.38 per an interface with the RTGS platform
100 inhabitants, from 107.87 per 100 and performs daily settlements of
inhabitants in 2015. Access to the participants via RTGS. Services
internet fell to 92.4 million, compared provided by the National Switch
to 92.7 million recorded in the include POS retail payments, Mobile
corresponding period of 2015, due to based Payments, Internet/Web-based
the decline in economic activities. In payment, P2P transfers and
Sierra Leone, mobile voice telephony International (in-bound) Cash
has covered 70 percent of the country Remittance.
and approximately 66,667 per 100,000
persons have mobile phones. Internet In Ghana, major payment streams
penetration has improved to 5 percent experienced considerable growth in
in 2016, from 2 percent in 2015. both volumes and values. Cheques
continued to be the major non-cash
4.3 Payments System Development retail payment instruments in terms of
in the WAMZ values of transactions while mobile
The implementation of the West money financial services also
African Monetary Zone (WAMZ) accounted for significant volumes of
Payments System Development Project retail payments transactions. The
in The Gambia, Guinea, Liberia and Ghana Interbank Settlement System,
Sierra Leone funded by the African which is Ghana‟s Real Time Gross
Development Bank (AfDB) was Settlement (RTGS) system, continued
successfully completed in 2016. to provide the platform for making
Nigeria and Ghana continued to make high value payments for banks and
giant strides in the development of their customers. The national switch,
payments system in 2016. Gh-Link, had 36 member institutions
connected to it as at end 2016. These
In the Gambia, the Payments System included 26 banks, 8 savings and loans
Development Project provided and 2 non-bank financial institutions.
platform for the country to register Total volumes and total value on the
substantial gains in its attempt to make Gh-Link platform increased by 8.8 per
the Gambian economy cashless. The cent and 46. 5 per cent, respectively.
National Payment Switch of the The mobile money space continued to
Gambia (Gamswitch) was fully grow since the passage of the
launched in 2016 with Interswitch PLC Electronic-money Issuers and Agents
of Nigeria as operator. The Gamswitch Guidelines in July 2015. There were 4
was at the forefront of promoting Mobile Network Operators (MTN,
financial inclusion in the payment TIGO, AIRTEL and VODAFONE).
landscape of the Gambia through The number of registered mobile
interoperability amongst the money customers increased by 50.42
participating banks. It has also per cent as at end 2016. The number of
increased efficiency and velocity in the Automatic Teller Machines (ATM)
electronic payment value-chain and and Point of Sales (POS) increased by
reducing overall investment and 111.4 per cent and 34.29 per cent for
operation cost for the industry as the period under review.

42
In Guinea, the implementation of the with the LRA and the
WAMZ Payments System Commercial Banks.
Development Project was completed in  Launching of National Shared
2016 and working efficiently. The Switch (shared switch, telco,
Infrastructure upgrade contractors in middleware, scheme gateway)
Guinea had delivered on their contracts with four Commercial Banks
and were on the ground to support the connected in 2016, while the
main Solution Providers. The Central other banks were in advance
Bank of Guinea (BCRG) conducted a stages of connectivity.
study on the establishment of the In line with the Payment System
National Switch. The study was Vision 2020 (PSV2020) agenda,
entrusted to the Interbank Monetary Nigeria initiated various reforms in
Grouping of West African Economic 2016 in an effort to further increase the
and Monetary Union (GIM-UEMOA) safety, reliability and efficiency of the
which has a 14 years‟ experience for payments system. As part of the
technical assistance. BCRG is strategy in ensuring the successful
optimistic about the establishment of completion of Bank Verification
the National Switch within a Number (BVN) implementation in
reasonable time. Nigeria, the Central Bank of Nigeria
(CBN) undertook the following during
All the components of the WAMZ the review period:
Payments System Development Project
went live in Liberia in 2016 and were i. BVN enrolment for Nigerian
working efficiently. All the Solution bank customers in diaspora and
Providers and Contractors were security personnel who were on
providing necessary post go live special assignment was
support in line with the contract, the extended till end-December,
Service Level Agreement (SLA) and 2016.
the mandatory maintenance period. ii. A draft Framework for watch-
The Central Bank of Liberia during the listing fraudulent customers in
course of the year continued to build the banking industry using the
on the achievement of the WAMZ BVN database was issued.
Payments System Development Project iii. Savings account customers
with the following initiatives: with BVN were allowed to
deposit cheques of not more
 The Payments System Act than N2 million into their
enacted by the National accounts, per customer, per
Legislature in 2014, was day.
printed into hand bills
 Completion of the Payment The Nigeria electronic Fraud Forum
System Rules (ACP/ACH and (NeFF) in collaboration with the
RTGS) and awaiting approval Nigeria Police established the first ever
from the Board dedicated e-Payment and Card Crime
 Payment of the Government of Unit of the Nigerian Police.
Liberia Taxes through the
RTGS System in collaboration The volume of inter-bank fund
transfers through the CBN RTGS

43
increased by 23.92 percent while the payment services nationwide, the Bank
value decreased marginally by 0.69 is now working closely with the
percent. The volume and value of commercial banks for the
cheques decreased by 12.97 per cent establishment of a National Switching
and 5.91 per cent, respectively. The Company that would interconnect and
volume and value of electronic make interoperable the various
transactions increased considerably. payments systems of all commercial
The volume and value of mobile banks. Other innovations introduced
payments increased by 7 per cent and during 2016 by the Bank of Sierra
71 per cent, respectively, reflecting Leone were automated upload of staff
growing public awareness in the salaries and auto reconciliation.
system.
4.4 Developments in the Financial
The CBN granted approval to Sector of Member States
Interswitch Financial Inclusion During the review period, the
Services (IFIS) and Innovectives to performance of the financial sector in
operate as Super Agents to enable the the West African Monetary Zone
two companies to grow an active agent (WAMZ) was mixed owing to the
network for delivering financial relative impact of macroeconomic
services to both the banked and developments at the international
unbanked public. Guidelines for the scene.
operations of Treasury Single Account
(TSA) by state governments in the 4.4.1 Banking
country was issued by the Bank. The Efforts were made by Member States
draft Payments System Management at ensuring adequate and appropriate
Bill was approved for onward supervision of their banking sectors in
submission to the National Assembly order to increase resilience and
for enactment as an Act. enhance their capacity for
intermediation and other pertinent
In Sierra Leone, the Payments System banking roles. Despite the harsh
Development Project provided macroeconomic conditions that
platform for the country to launch the characterized the period under review,
mobile money guidelines and the the WAMZ banking system remained
implementation of the National Switch stable. Although key balance sheet
project. The guidelines would make items such as credit, deposits and
way for the licensing and operation of assets declined in the review period
the mobile money operators while the largely due to exchange rate
National Switch would move the depreciation, the banking system
society from one that is predominantly remained sound, maintaining capital
cash based to a cashless (electronic) levels well in excess of minimum
society. In addition to the above, 2016 prudential requirements. The decline in
also witnessed the introduction of rules commodity prices and the resultant
and procedures for the operation of the impact on foreign reserves portended
RTGS, ACH and the CSD with a risks to banking system stability
robust pricing mechanism for the use through increase in non-performing
of the systems. To further enhance loans. In addition, lending rates
efficiency in the timely delivery of remained high, underlying the increase

44
in net interest rate spread. percent to GHȼ 82.6 billion in 2016.
Nevertheless, the banking system in Financial soundness indicators
the WAMZ is expected to remain improved based on the SLEMS rating
sound and stable with the continued system. All banks complied with the
improvement in the regulatory and minimum capital requirement. The
supervisory environment in Member industry‟s average capital adequacy
States, as countries take steps to ratio (CAR) was 18.04 percent in
implement the Basel Core Principles December 2016, well above the 10.0
(BCPs), Basel II & III, Risk-based percent minimum. However, The Bank
Supervision (RBS) and International of Ghana (BoG) in 2016 launched an
Financial Reporting Standards (IFRS). update of the 2015 Asset Quality
The Gambia‟s banking industry Review (AQR) which revealed that
remained adequately capitalized with despite the resolution of the energy
all the banks complying with the sector debts, some banks had capital
minimum capital-adequacy ratio of adequacy ratios below the required
10.0 percent. All twelve (12) licensed 10.0 percent. The central bank had
commercial banks and one Islamic instituted capital restoration plans in
bank met the minimum capital accordance with the new Banks and
requirement. Capital and reserves of Specialised Deposit-taking Institutions
the industry stood at D4.7 billion at (SDIs) Act, 2016 (Act 930) with these
end-December 2016, representing an banks.
increase of 5.3 percent compared to
December 2015. The risk-weighted In spite of these developments, the
capital adequacy ratio averaged 38.4 industry remained profitable even
percent in December 2016, and the though both return on assets (ROA)
total assets of the industry rose by 7.8 and return on equity (ROE) declined to
percent to D31.58 billion at end- 3.8 percent and 17.6 percent, from 4.5
December 2016. The NPL ratio and 21.4 percent, respectively in 2015,
increased from 6.5 percent to 9.3 due largely to the unfavourable
percent in December 2016. macroeconomic environment. The
Profitability measured by total quality of bank assets deteriorated as
earnings of the industry decreased to the ratio of non-performing loans
D144.6 million in December 2016 (NPL) to gross loans increased to 17.4
from D145.4 million in 2015. percent in December 2016 from 14.9
Similarly, return on assets (ROA) and percent in the previous year, largely on
return on equity (ROE) decreased to account of non-performance of energy
2.0 percent and 12.2 percent sector related loans as commercial
respectively in December 2016 from banks were exposed to institutions
2.1 percent and 13.8 percent a year such as the Volta River Authority
earlier. (VRA), the Tema Oil Refinery (TOR)
and Bulk Oil Distribution Companies
In Ghana, the banking industry (BDCs) as well as the Finatrade Group.
remained sound and relatively stable Nonetheless, government had passed
during 2016. Four (4) new banks were the Energy Sector Levy Act, 2015 (Act
licensed in 2016 bringing the total 899) to mobilize revenue to defray
number to 33. Total assets of the VRA and TOR energy debts with the
banking system increased by 11.9 banks. As a result, some payments

45
were made to the banks in the period banks breached the minimum share
under review. capital requirement of GNF 100
billion. Only a bank was in breach of
In 2016, Guinea‟s banking the minimum ratio of solvency
environment was made up of sixteen requirement of 10.0 percent. All the
(16) banks with a network of one banks were compliant with the
hundred and sixty-two (162) branches, minimum cash requirement in Guinean
one hundred and fifty (150) ATMs and Franc of 100.0 percent. Nonetheless,
one thousand, nine hundred and six (6) banks breached the cash
ninety-three (1993) employees for over requirement in foreign currencies, of
five hundred and twenty thousand which a bank was also in breach of
(520,000) customers. There were seven overall liquidity. All the banks were
(7) branches and seventeen (17) ATMs compliant with the risk concentration
newly opened in 2016. Guinea‟s norms. Credit portfolio of the banking
banking industry remained dominated system significantly deteriorated in
by the three “major banks” December, 2016; loss ratio increased
representing 57.0 percent of total from 4.7 to 7.37 percent and default
balance sheet of the sector, 60.0 rate from 6.21 percent to 9.39 percent.
percent of collected deposits and 56.0
percent of allocated credit. ECOBANK During the review period, the number
is ranked first in terms of total balance of banks in Liberia was nine (9). The
sheet (23.0 percent) and collected Central Bank of Liberia (CBL) closed
deposits (22.0 percent), while the the First International Bank Liberia
BICIGUI is ranked first in terms of Limited (FIBLL) as a result of
allocated credit, the SGBG is third in regulatory breaches. At the same time,
respect to the three criteria. the CBL licensed a new bank, Groupe
Nduom Bank Liberia Limited
The balance sheet of the banks in 2016 (GNBLL) in June 2016. GNBLL
indicated that total assets of the acquired the defunct FIBLL.
banking system increased by 10.0 Commercial banks‟ branch networks,
percent, rising from GNF 16,121 including windows and annexes across
billion to GNF 17,724 billion. Profit of the country rose to ninety-three (93) in
the Guinean banking system increased 2016, from eighty-seven (87) in 2015.
by GNF 10 billion to GNF 370 at end- Total assets, capital and deposits rose
December 2016 compared with GNF by 5.4 percent, 21.2 percent and 3.8
360 billion at end-December 2015. The percent in 2016, respectively,
return on assets (ROA) stood at 2.17 compared with 7.5 percent, 0.8 percent
percent compared with 2.24 percent at and 16.0 percent in 2015, respectively.
end-December 2015. The Return on Liquidity in the banking sector
Equity (ROE) was 20.63 percent remained strong during the year with a
compared with 27.44 percent at end- liquidity ratio of 51.4 percent; which is
December 2015. well above the regulatory threshold of
15.0 percent. All nine (9) banks
On the prudential regulation recorded liquidity ratios above the 15.0
compliance, the banks‟ situation as at percent minimum. Return on Equity
31st December 2016 was as follows: (ROE) and Return on Asset (ROA) for
four banks out of fifteen (15) active 2016 were 7.8 percent and 1.1 percent,

46
compared with negative -6.6 percent from 5.3 percent at end-December
and -0.8 percent respectively, for 2015. 2015. This was attributed to the tough
challenging macroeconomic
The banking sector continued to show environment in the review period. The
strong capital position. With respect to ratio of core liquid assets to total assets
total reported capital, the sector decreased by 2.2 percentage points to
recorded an average of US$13.5 16.3 percent at end-December 2016
million, which exceeded the minimum from 18.5 percent at end-December
requirement of US$10.0 million and 2015. Also, the ratio of core liquid
represented an increase of 21.2 percent assets to short-term liabilities
compared with the average capital for decreased by 2.6 percentage points to
2015. Asset quality, on the other hand, 24.5 percent at end-December 2016,
measured by the Non-Performing compared with 27.1 percent at end-
Loans (NPLs), witnessed a significant December 2015.
improvement to 11.0 percent in 2016,
from 13.0 percent in 2015, due mainly Capital-based indicators remained
to stringent policy measures instituted above the Basel minimum threshold in
by the CBL against delinquent 2016. The ratio of regulatory capital to
borrowers as well as recovery efforts risk weighted assets decreased by 3.0
of the banks percentage point to 13.9 percent at
end-December 2016, compared to 16.1
For Nigeria, the financial sector percent at end-December 2015.
remained stable during the year 2016, Similarly, the ratio of Tier 1 capital to
despite the challenges emanating from risk weighted assets declined by 4.2
both the global and domestic fronts. percentage points to 12.9 per cent at
Principally, the continuous softening of end-December 2016 from 17.1 per cent
crude oil prices, which led to a fall in at end-December 2015. Two out of the
the gross official reserves and three income and expense indicators
depreciation of the naira, adversely also indicated decrease in performance
affected some banking sector in 2016, relative to 2015, suggesting
indicators and performance of the decrease in the efficiency of the
capital market. In 2016, the banking industry to intermediate. The
composition of banks included 20 ratios of interest margin to gross
Deposit Money Banks; 4 Merchant income and personnel expenses to non-
Banks and a non-interest bank. The interest expenses, decreased by 13.8
categorization of banks showed ten and 5.5 percentage points to 50.0 and
(10) International, ten (10) National, 30.5 percent at end-December 2016,
one (1) Regional Bank and two (2) respectively. The ratio of non-interest
Foreign Owned Banks. The banking expenses to gross income also
industry remained resilient in 2016, decreased slightly by 0.4 percentage
despite the weak performance of the points to 63.8 percent. The non-
financial soundness indicators and the performing loans (NPLs) ratio
deterioration of assets quality, relative increased from 5.3 percent in the
to the corresponding period of 2015. preceding period of 2015 to 14.0
The ratio of non-performing loans percent at end-December 2016, and
(NPLs) to gross loans deteriorated to was above the prudential limit of 5.0
14.0 per cent at end-December 2016 percent. This development could be

47
attributed to banks‟ exposure to the oil banks accounting for 43.1 percent of
and gas sectors and the slowdown in the industry total assets. The deposits
economic activities. The ratio of non- base of the banking system increased
performing loans (net of provisions) to by 18.4 percent to Le5.1 trillion, while
capital significantly increased to 38.4 the credit portfolio grew by 11.9
percent at end-December 2016 from percent to Le1.50 trillion in the review
5.9 percent at end-December 2015, period.
implying a huge decline in the sector‟s
capacity to withstand the negative 4.4.2 Banking Supervision and
effects of non-performing loans. The Regulation
increase in NPLs remains a key risk to In 2016, Member States endeavored to
the Nigerian banking industry. implement programmes and policies to
ensure financial regulation and
In Sierra Leone, there are fourteen (14) supervision meet minimum
banks across the country with one international standards. Significant
hundred and five (105) branches strides were recorded during the
compared with 13 with one hundred review period on the implementation
and three (103) branches in 2015. of International Financial Reporting
However, only one bank met the Standards (IFRS), Risk-Based
minimum unimpaired paid up capital Supervision (RBS), Basel II and the
requirement of Le 30.0 billion. The automation of banking supervision
average Capital Adequacy Ratio processes.
(CAR) of banks remained far above
the 15.0 percent minimum Excluding Guinea, all Member states
requirement, although it declined to had adopted IFRS and continued to
30.7 percent from 33.9 percent as at prepare and publish financial
end-December 2015, an indication that statements in compliance with its
the loss absorption capacity of the standards. In Guinea, the Central bank
industry was strong. However, two was working towards the adoption of
banks failed to meet the Capital IFRS with the introduction of a new
Adequacy Ratio. Also, liquidity of accounting framework for banks as a
the banking system remained robust as requirement. Regarding the
all banks met the overall minimum implementation of risk based
liquidity ratio of 30.0 percent at end supervision (RBS), Ghana, Guinea,
December 2016. However, the Liberia and Nigeria had adopted the
industry‟s non-performing loans approach and conducted examinations
remained high, though it declined from using the methodology. The Central
31.7 percent as at December 2015 to Bank of The Gambia (CBG) was
22.7 percent as at December 2016. working with the IMF‟s AFRITAC
Moreover, all the banks recorded pre- West 2 to develop the necessary
tax profits as the unaudited pre-tax human capacity, guidelines as well as
profit of the industry increased by conduct a pilot test for risk based
Le58.7 billion (37.1 percent) to supervision. The Bank of Sierra Leone
Le217.1 billion at end-December 2016. (BSL) was expecting a new long-term
Total assets of the banking industry Advisor from the IMF to support its
grew by 19.8 percent to Le6.3 trillion RBS implementation. The Advisor is
at end-December 2016 with three expected to review key guidelines and

48
relevant frameworks which were automation of reporting systems of
developed by the previous Advisor banks and microfinance institutions. In
who left abruptly during the Ebola Liberia, the CBL officially launched
epidemic. Meanwhile, BSL continued the V-RegCoSS on April 4, 2016 and
to strengthen capacity of bank its parallel run lasted till October 2016.
examiners in preparation to roll out its The Bank further issued a Directive for
RBS. all banks to submit all prudential
returns through the V-RegCoSS
In relation to the implementation of beginning November 1, 2016 with
Basel II, the Bank of Ghana (BOG) set penalties for non-compliance. Hence,
up in-house Committees to prepare the banks submitted all the clusters
relevant framework and guidelines for through V-RegCoSS though there were
the banking industry in preparation for challenges with the quality of the
the implementation of Basel II. The reports. The system operated smoothly
work of the Committees was supported despite minor drawbacks.
by a Consultant from the IMF. The
Central Bank of Nigeria (CBN) In Nigeria, the CBN awarded a
completed the process for the contract to a vendor for the
implementation of Basel II and banks implementation of an Integrated
are expected to submit their Internal Regulatory System (IRS) which would
Capital Adequacy Assessment Process accommodate Basel II and III
(ICAAP) reports for 2016. The requirements, non-interest banking and
Gambia, Guinea, Liberia and Sierra International Financial Reporting
Leone continued to adopt a gradual Standard (IFRS). The new system
approach toward the implementation of which could interface with other IT
Basel II, with initial emphasis on solutions in the Bank was expected to
compliance with the Basel Core go live in about two years. In Sierra
Principles and pillar I of Basel II. Leone, the parallel run of V-RegCoSS
which was launched in 2014 lasted till
Member States continued to record December 2016. All banks were
significant progress in the automation directed to submit prudential returns
of the banking supervision processes through the V-RegCoSS beginning
such as Valtech Regulatory January 2017.
Compliance System (V-RegCoSS) and
other software solutions for Some other developments in regulation
strengthening off-site surveillance. In and supervision in the Zone are
The Gambia, the V-RegCoSS which outlined as follows:
was launched in 2012 experienced a
temporary interruption and slowed The BoG initiated the implementation
performance. In Ghana, the BOG was of the Basel II programme in 2007 but
planning to introduce a system that was suspended to put in place the
would accommodate IFRS, Basel II necessary supervisory guidelines.
and III requirements as well as collect Currently, the Bank has initiated the
raw data from banks. In Guinea, process of re-implementing the Basle
Central Bank of Guinea was expecting framework to the Ghanaian banking
to receive a grant from the African industry. As part of the
Development Bank to finance the implementation, the Banks and

49
Specialized Deposit Taking Institutions for the Nigerian Banking System,
Act 2016 (Act 930) has been passed creation of a project team, assigned
and draft guidelines on corporate with the task of developing guidelines
governance and risk management were to support the implementation of the
under review. The Bank intended to IFRS 9; revision of the template for the
implement the new Basel framework submission of CAR by commercial
by June 30, 2018. banks as part of the measures to
strengthen the requirements of Basel
In Guinea, several decisions of the II/III; and publication of both
Approval Committee and Directives qualitative and quantitative disclosures
from the Governor of the BCRG were of banks‟ core activities, risk profiles
adopted in 2016, including the and methodology to stakeholders. To
implementing provisions for the enhance supervision of the Domestic
banking Act, as well as approval Systematically Important Banks (D-
decisions for some executives and SIBs), CBN was developing guidance
auditors of credit institutions. They notes that would provide clarity on
are among others: regulatory expectations and ensure
standardization across the industry.
o Directive N°64/DGSIF/DSB The CBN monitored compliance of
dated 22nd June, 2016 relating banks to the recommendations of the
to the corporate governance of Money Laundering, and Foreign
Credit institutions; Exchange examination reports of 2015.
o Decision N°D/2016/004/CAM The monitoring exercise revealed an
dated 16th December, 2016 on acceptable level of compliance to the
shareholding by credit recommendations. The Bank, in
institutions in existing compliance with Financial Action Task
companies or in the process of Force (FATF) and Anti-Money
establishment. This Decision is Laundering/Combating the Financing
an implementing text of Article of Terrorism (AML / CFT)
7 under the banking Act. It sets requirements, directed banks to appoint
the limits on this shareholding, Executive Compliance Officers, not
notably: below the rank of Executive Director,
 15 percent of credit who will be responsible for compliance
institution‟s net equity per with regulations. In addition, Nigeria is
share; no longer subject to FATF‟s
 60 percent of credit monitoring process under its on-going
institution‟s net equity for total global AML/CFT compliance process
shares; and and the authorities also applied for
 30 percent of share capital or membership of the FATF.
voting rights of issuing
company per share To promote financial inclusion, some
activities were undertaken by the CBN
For Nigeria, some of the reforms pursuant to the National Financial
undertaken by the Bank to boost its Inclusion Strategy (NFIS). These
regulatory and supervisory activities included: setting up of technical
during the period comprised the committees to facilitate
following: a Framework on Watch-list implementation of NFIS at the State

50
level; development of financial cross-border supervision, no on-site
inclusion targets for banks; examination was conducted during the
introduction of two pilot schemes review period. However, off-site
namely E-Wallet for Farmers and analysis and supervision continued as
Social safety nets; commissioning of a the Bank received and analysed
pilot study to examine the regulatory prudential and other returns from off-
options that could accelerate the shore banking subsidiaries through the
adoption of mobile money services; parent banks.
and four working groups formed to
address the themes on Products, The CBN continued with the redesign
Channels, Financial Literacy and of the Credit Risk Management System
Special Intervention. (CRMS) and adopted the Bank
Verification Number (BVN) and
In the same vein, the NFIS Governing Taxpayer Identification Number (TIN)
Committee approved the 2015 annual as the only identifier for individual and
report of the National Financial corporate borrowers. The essence was
Inclusion Strategy for publication; to ensure inclusion of borrowers from
directed Nigerian Agricultural all lending institutions and consequent
Insurance Corporation (NAIC) to increase in overall efficiency and
implement the capacity building plan effectiveness in credit risk
for agricultural insurance from 2017; management. At end-December 2016,
requested Nigerian Postal Service the number of borrowers (with credit
(NIPOST) to device ways to ensure facilities above N1 million) registered
that the approved stamp duty would in the CRMS database stood at
not hinder financial inclusion goals; 221,822. Similarly, the number of
urged the Securities and Exchange registered borrowers with outstanding
Commission (SEC) to expedite action facilities rose by 69.08 per cent to
on finalizing the Capital Market 104,126 at end-December 2016 from
Financial Inclusion Strategy, as well as 61,580 at end-December 2015 and the
to finalize the draft guidelines on the number of running credit facilities in
expansion of distribution channels for the database also increased by 50.71
capital market products; urged CBN per cent to 181,987 at end-December
and National Insurance Commission 2016 from 120,750 at end-December
(NAICOM) to jointly review and 2015, due to increased compliance by
harmonize the Bancassurance banks.
Guidelines; and set up a Committee to
review the NFIS. In the case of Sierra Leone, the Central
Bank continued to strengthen
In addressing the concerns of banks, compliance with international
huge exposure to the oil and gas sector regulatory standards during the review
and the low global oil price, a review period. Banks in Sierra Leone
of banks‟ exposure to the sector was complied with the Basel Core
conducted and this was followed by Principles at different levels. In
the downgrading of majority of the addition, all banks continued to
facilities, which were classified as non- prepare their financial statements in
performing loans with additional compliance with the International
provisions effected. With regard to Financial Reporting Standards (IFRS).

51
The BSL continued to implement key maintaining and enhancing financial
reforms to improve the financial stability in the Zone. The College held
environment with the aim of deepening all the four statutory meetings
financial markets and strengthen scheduled for 2016. The meetings
stability. The Bank was reviewing its provided an avenue for discussions on
base rate computation model to address issues affecting the banking industry in
the concerns of commercial banks and the Zone, including the necessity to:
assess its actual impact on improving build effective partnership and
transparency of loan pricing. The BSL collaboration in cross-border banking
was also reviewing its legal supervision; develop a banking crisis
instruments, including the Banking Act resolution framework; and reinforce
of 2011, Other Financial Institutions measures for combating money
Act, 2001 and Prudential Guidelines laundering and the financing of
for banks. A Credit Administration and terrorism. Discussions during the
Recovery bill has also been drafted by meetings also centered on member
the Bank, in collaboration with countries experience with IMF
relevant agencies, which when passed Financial Sector Assessment
into law will improve credit risk Programmes; framework for the
management in the banks. In addition, supervision and regulation of Islamic
the Collateral Registry User banking, framework for supervision
Acceptance Test 1 & 2 has been and regulation of microfinance
completed and the system has gone institutions including current
live, with the resultant effect of challenges facing the sector; and
improving transparency and capacity building for bank examiners,
information disclosure in the credit among others.
market, encourage moveable asset-
based lending and speedy enforcement Major achievements of the College
of credit contracts, largely through during the period included: Joint
extra-judicial means in line with examinations of ten (10) Nigerian bank
Borrowers and Lenders Act of 2014. subsidiaries in 2016; improved
The automation of the banking automation of banking supervision
supervision process was completed and processes with the launch of V-
the vRegCoSS has gone live. The BSL, RegCoSS in Liberia and Sierra Leone
with assistance from the IMF, is and the commencement of the
working towards migrating from implementation of IRS in Nigeria;
compliance based to risk-based successful implementation of the
approach to supervision, which will foundation, intermediate and advance-
allow for a more focused analysis of level banking supervision courses and
the loan portfolio of banks in line with the high-level seminar on IFRS 9 and
the emerging challenges in the global Macro prudential Analysis; the
and financial environment resumption of Risk Based Supervision
(RBS) implementation in The Gambia
4.4.2.1 Cross Border Supervision and Sierra Leone; and the
The College of Supervisors of the strengthening of Basel II
West African Monetary Zone implementation in Nigeria and
(CSWAMZ) continued to provide the commencement of preparations for
main supervisory platform for implementation in Ghana and Liberia.

52
Key supervisory concerns of the 20 per cent respectively, during the
College were: sustained high level of period under review. Total claims
non-performing loans (NPLs) in most increased by 5.8 per cent to US$1.02
Member States; high concentration of million in 2016 from US$ 984,400 in
credit in some sectors of the economy; 2015. In local currency, however, total
declining profitability of banks due to claims increased by 32.7 per cent from
macroeconomic challenges and high GMD5.5 billion in 2015 to GMD7.3
operating costs; high lending rates in billion in 2016 reflecting significant
most Member States; unfavorable depreciation of the Dalasi. Insurance
macroeconomic developments across penetration remained low and
the Zone such as the sharp depreciation unchanged, at about 1.0 percent in
of domestic currencies, rising inflation 2016 as in the previous year. The
and sluggish economic growth; and the minimum capital requirement
potential risks associated with the non- remained US$340,368 for both life and
resolution of FI Banks in some non-life insurance and all companies
jurisdictions. were adequately capitalized.

4.4.3 Insurance In Ghana, the number of insurance

The insurance industry in the WAMZ companies increased to 52 (23 life
continued to function smoothly though companies, 26 non-life companies, and
it was affected by the depreciation of 3 reinsurance) in the reviewed period
currencies across the region. The from 49 in 2015. There were up to 70
depreciation of currencies negatively broking companies and 7,000
impacted gross premium, which insurance agents. The total asset of the
declined significantly during the insurance industry stood at US$880
review period. million (GHc 3.7 billion) at end-
In The Gambia, the number of December 2016 compared with
insurance companies remained at 11 as US$790 million (GHc 3.0 billion) in
in 2015. In terms of composition, there the preceding period, representing an
were 9 non-life and 2 life insurers. In 11.0 percent increase. In 2016, the
terms of ownership, 5 were fully Non-life insurance companies made
locally owned, 2 foreign owned, and 4 underwriting losses; however,
were of mixed ownership. The number investment income increased the
of brokers and agents increased to 10 profitability of the sub-sector. On the
and 74, respectively, from 9 and 68 in other hand, the Life insurance
the previous year. Total assets of the companies made underwriting profit.
sector slightly declined by 5 percent to During the review period, insurance
US$ 12.5million in 2016 compared to penetration rate was 1.3 percent
US$ 13.28 million in 2015, due to the compared to 1.17 percent in 2015,
depreciation of the Dalasi. Similarly, excluding pension and health insurance
there was a slight decline of 2 per cent
in gross premium to US$ 7.15 million In Guinea, the number of insurance
in 2016 from US$ 7.25 million in companies remained at 11 as in 2015.
2015, mainly on account of the Total assets of the industry stood at
depreciation of the dalasi. In local US$42.6 million. Gross premium
currency terms, both assets and gross recorded for the period was US$34.2
premium increased by 4 per cent and million compared to US$ 36.4 million

53
in 2015, representing a decline of 6 per In Nigeria, the number of insurance
cent attributable to the depreciation of companies remained at 58 as in 2015,
the Guinea Franc. However, in local comprising 15 life and 29 non-life
currency, gross premium increased by insurance, 12 composite insurance and
8.2 per cent to GNF315 billion from 2 Reinsurance services. In 2016, there
GNF291 billion in the review period. were 3,300 registered Agents, 660
Insurance penetration was at 0.42 per branches, 500 insurance brokers and
cent in 2016 compared to 0.41 per cent 66 insurance loss adjuster‟s companies.
in 2015. The top 5 insurance Gross premiums collected declined by
companies have 67 per cent of market 35.2 percent to US$ 990 million (₦302
value. billion) in 2016 from US$1.53 billion
(₦299.8 billion) in 2015 while total
In Liberia, the total number of assets also declined by 36.1 per cent to
insurance companies remained at 20 as US$2.6 billion (₦802 billion) from
in 2015. Of the twenty insurance US$4.07 billion (₦797.7 billion) in
companies, there were 2 life, 1 non-life 2015. In naira terms, however, both
and 17 composite. The market size premium and assets actually increased
included 31 branches, 2 insurance by ₦2.2 billion and ₦4.3 billion,
brokers, and insurance loss adjuster. respectively. The decline in both
The number of insurance brokers premium and assets was attributable to
declined from 12 in 2015 to 2 in 2016 the depreciation of the naira by about
due mainly to the ongoing licensing 54 percent during the period under
requirements. Total assets declined by review. Premium income to GDP was
17 per cent to US$ 40.0 million in 0.4 percent, whilst total claims paid out
2016 compared to US$48.2 million in was US$340 million (₦104 billion).
2015. Gross premiums declined Also, 29 insurance companies were
markedly to US$24.1 million in 2016 registered on the stock market and 8
compared to US$42.3million in 2015, had foreign ownership.
representing a 43 per cent decline. In Sierra Leone, the total number of
However, in local currency terms, total insurance companies in the review
assets declined marginally by about 1.4 period was 11. The industry witnessed
per cent from LRD4.16 billion in 2015 the passage of the Insurance Act 2016
to LRD4.0 billion in 2016 whereas into law in July 2016. The Act aims at
gross premium declined by 33 per cent introducing a number of reforms to
from LRD3.6 billion in 2015 to improve coverage, performance,
LRD2.4 billion in 2016. Minimum capital base, and sustainability of the
capital requirement for life insurance industry. The law is also expected to
and non-life insurance was strengthen the regulatory powers of
US$750,000 and US$1.5 million, SLICOM, enhance compliance with
respectively. Gross annual claims was international standards and increase the
US$6.46 million for the period under capital base of insurance companies.
review. The decline in both assets and
gross premium in US dollars is largely 4.4.4 Pension
as a result of the depreciation of the Total assets of pension funds in the
Liberian dollar. WAMZ declined considerably to
US$23.6 billion in 2016 from US$28.8
recorded in 2015. The decline in

54
pension assets can largely be attributed 58.9 percent, Tier 2 was 23.0 percent
to currency depreciation in Nigeria, and Tier 3 was 0.5 percent. The
which account for over 85 per cent of coverage on the tier two and three was
WAMZ total pension assets, in limited due mainly to lack of
addition to unfavorable economic confidence in the private pension trust
climate in member States. scheme. A standing committee had
been set up to initiate strategies to
In The Gambia, there were four (4) increase the informal sector‟s
pension funds administered by the participation in the scheme. There was
Social Security and Housing Finance also collaboration with the Registrar-
Corporation (SSHFC) namely: General to include the first and second
National Provident Fund (NPF) with tiers as part of the form to be
5,394 institutions and 129,829 completed by new employees.
members; Federated Pension Scheme
(FPS) with 84 institutions, of which, In Guinea, the pension funds were
58 are active and 14,260 members; managed by two different structures.
Industrial Injuries Compensation Fund On one hand there was the Caisse
(IICF) (Civil Service) with 1 Nationale de Sécurité Sociale (CNSS,
institution and 155,336 members; and National Social Security); a public
Industrial Injuries Compensation Fund agency vested with financial and
(Local Area Councils) with 5 administrative autonomy to manage
institutions and 1,760 members. Total and serve parastatal and private sector
assets was US$36.4 million as at end- workers. On the other hand, the
December 2016. Total contribution Division des Fonds de Retraite (DFR,
was US$ 5.3 million for the period Pension Funds Division) within the
under review. The main investment National Directorate of budget covered
areas were in time deposits, equities, the civil servants. The contribution
hotels and housing development. from workers to the CNSS was 23.0
percent, of which 18.0 percent was
In Ghana, the implementation of the paid by the employer and 5.0 percent
National Pension Act 2008 (Act 766) by the employee; this contribution
continued during the review period. ranged from a floor of GNF 440.000 to
As at end-December 2016, there were a ceiling of 1.5 million in charge of the
120 service providers compared to 109 beneficiaries. In order to provide an
in the corresponding period in 2015. efficient social service to government
These were made up of 75 Pension civil servants, the Government of
Fund Managers, 29 Corporate Trustees Guinea created on 31st March, 2014
and 16 Pension Fund Custodians. Total two new structures : the Caisse
assets portfolio increased by 46.0 nationale de prévoyance sociale des
percent to US$ 3.3 billion (GHc 13.9 agents de l‟Etat (CNPSAE, National
billion) in 2016 from US$2.25 billion Social Security for Public Employees)
(GHc 8.55 billion) in 2015. This and the Institut national d‟assurance
comprised Tier 1 US$1.76 billion maladie obligatoire (INAMO, National
(GHc 7.4 billion), Tier 2 US$ 499 Compulsory Health Insurance
million (GHc 2.1 billion) and Tier 3 Institute). The CNPSAE was expected
US$452 million (GHc1.9 billion). The to take over the powers of the current
institutional coverage of Tier 1 was Division of pensions while the

55
INAMO was expected to cover the cent to Le1.0 trillion in 2016 from
health insurance of government and Le1.01 trillion in 2015, signifying the
local civil servants and contractual adverse effects of the depreciation of
workers. the Leone against the US dollars.
Benefits processed during the period
In Nigeria, the number of licensed under review declined by 23 per cent
pension operators was 32 as at end- to US$11.2 million from US$14.6
December 2016, comprising four (4) million in the previous year, where as
Pension Fund Custodians (PFCs), in local currency terms, this reflect a
twenty (21) Pension Fund marginal decline of about 2 per cent
Administrators (PFAs) and seven (7) from Le82.3 billion in 2015 to Le80.5
Closed Pension Fund Administrators billion in 2016.
(CPFAs). The pension assets declined
by 23 percent to US$20.1 billion at 4.4.5 Capital Markets
end-December 2016 from US$26.3 The West African Capital Market
billion in 2015. However, in naira Integration Council (WACMIC)
terms, pension assets significantly continued to harmonize the rules and
increased by 19.0 percent to N6.13 regulations for the issuance and trading
trillion in 2016 from N5.15 trillion in of financial securities across the
2015. The Contributory Pension Economic Community of West African
Scheme in Nigeria which commenced States (ECOWAS).
with Federal ministries, departments
and agencies attracted 25 out of 36 The Technical Committee and Council
states in Nigeria. A total of 10,120 held a meeting each in March and
employers were issued with certificates October 2016, respectively. The
of compliance with the provision of the Report of the Technical Committee
PRA as at December 31, 2016. which was adopted by the Council
covered the following:
In Sierra Leone, membership of the i. Translation of approved and
National Social Security and Insurance finalized Phases 1 and 2
Trust (NASSIT) increased marginally documents into French and
by 1.0 percent to 227,618 at end- Portuguese
December 2016 from 225,219 in the ii. Certification of Brokers
previous year. Total amount of social iii. Proposed Tax Framework for
security contributions increased WACMIC
marginally to US$43.7 million at end- iv. Live data feeds / consolidated
December 2016 from US$43.6 million live data feeds
in the previous year. In local currency v. Plan for implementing
terms, however, social security International Conference, and
contributions significantly increased by vi. Budget for Funding WACMIC
27.9 per cent to Le314 billion in 2016 Secretariat and Activities
from Le245 billion in 2015. Net assets
declined by 22.5 per cent to US$ 139.2 Following the withdrawal of the
million at end-December 2016 from Securities and Exchange Commissions
US$179.5 million in 2015. However, (SECs) in the Sub-region from
in terms of local currency, the decline WACMIC, the ECOWAS Commission
in assets was marginal at about 1.0 per organized a consultative meeting

56
between the West African Securities At its 8th Meeting, the Council
Regulation Association (WASRA) and acknowledged the ongoing efforts to
WACMIC in August 2016, to review develop capital markets in The
and agree on the Regional Capital Gambia, Guinea, Liberia and Sierra
Market governance and regulatory Leone. It encouraged these countries to
structure in order to sustain the learn from the experience of members
integration initiative. At the 8th of WACMIC by starting on small scale
WACMIC meeting in Casablanca in and leveraging on the technology
October 2016, the Council adopted a infrastructure in other member
framework for cooperation and markets.
collaboration between WASRA and
WACMIC and all other stakeholders. In Ghana, the capital market continued
The Framework which includes to be challenged by the weak
institutional arrangement and macroeconomic performance of the
composition, areas of cooperation and economy and the high yields on the
relationships and channels of money market instruments. Activity on
communication is to be presented to the Ghana Stock Exchange (GSE)
WASRA for approval. declined further in 2016, evidenced by
the decline in the composite index by
The Council has adopted a three- 15.3 percent. Market Capitalization
phased approach to capital market also fell by 7.8 percent to
integration; namely: Sponsored Access GHc52,690.99 million in 2016. The
(Phase 1), Qualified West African bond market thrived and expanded as
Broker (QWAB) (Phase 2) and Fully investors sought fixed income
Integrated West African Securities instruments. Ghana Alternative
Market (WASM) (Phase 3). The Market (GAX) recorded 17 companies
Technical Committee identified the additional listing in 2016. These were
high cost of technology associated with explained by the poor performance of
enabling access to local Exchanges, equity shares, given the challenging
unfavourable macroeconomic macroeconomic situation during the
environment in most Member States period under consideration. As at end-
particularly the depreciation of year 2016, the membership of the
national currencies, and difficulties Ghana fixed income market was 36.
with effecting cash settlement and
restrictions on cross-border capital The Ghana Commodities Exchange
flows as challenges in the (GCX) which aims at improving the
implementation of Phase I. Regulatory agricultural sector continued to
issues such as obtaining the conduct feasibility studies in-order to
appropriate approval from regulators; identify products to be included. Initial
engagement with banks: liaising with study results point to the eventual
one or more settlement banks or inclusion of 14 commodities.
alternatively central banks in West However, three products have already
Africa for settlement purposes were been identified for possible trading on
identified as challenges affecting the the exchange. Relevant work is on-
implementation of Phase II. going to develop appropriate
warehouse receipt systems with the
support of USAID.

57
In Nigeria, the Stock market continued including spoofing and layering. The
to be characterized by share losses, due NSE also used NASDAQ‟s X-Stream
to adverse domestic and international trading platform as its trading engine.
economic developments. The NSE In furtherance of its commitment to
admitted four new companies, two provide quoted companies global
state government bonds, one corporate visibility and access to deep capital
bond, two FGN Bonds and one pools, the Exchange, in partnership
Exchange Traded Fund (ETF) on the with the London Stock Exchange
floor in 2016. In addition, there were Group (LSEG), held its 2nd
thirteen supplementary listings on the NSE/LSEG Dual Listings Conference.
NSE owing to bonus issues, special The Conference theme „Leveraging
placements and convertible preference Cross-Border Capital Markets for
shares. The Exchange delisted nine Sustainable Growth‟ was primarily
companies, eight of which were on targeted at companies keen to explore
account of failure to comply with post- a London/Lagos dual listing. The
listing requirements, and the last one conference was sequel to the
on the ground that the company had agreement between the NSE and LSEG
ceased to exist. to strengthen cooperation and jointly
promote mutual development between
The Sierra Leone Stock Exchange the two exchanges.
recovered from its dormant state
during the review period, as it received The Sierra Leone Stock Exchange
a boost with two more companies; the recovered from its dormant state
Commerce and Mortgage Bank (a during the review period, as it received
subsidiary of NASSIT) and the First a boost with two more companies; the
Discount House Limited listed on the Commerce and Mortgage Bank (a
Stock Exchange in addition to Rokel subsidiary of NASSIT) and the First
Commercial Bank, which had been the Discount House Limited listed on the
only listed company since the Stock Exchange in addition to Rokel
inception of the Market. The Securities Commercial Bank, which had been the
and Exchange Bill was also drafted, only listed company since the
awaiting the signature of the Minister inception of the Market. The Securities
of Finance and Economic and Exchange Bill was also drafted,
Development for its enactment into awaiting the signature of the Minister
law. This will pave the way for the of Finance and Economic
establishment of the Securities and Development for its enactment into
Exchange Commission. law. This will pave the way for the
establishment of the Securities and
The NSE partnered with NASDAQ to Exchange Commission.
acquire its SMARTS Market
Surveillance platform to power its The NSE and GSE continued to play
compliance program. The technology active role in capital market integration
was to provide the Exchange with the in West Africa by its active
surveillance expertise needed to grow membership of WACMIC, and its
and expand the market and equip it support in the launching of the
with the surveillance tools necessary to WASRA.
monitor market manipulation,

58
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 insurance as well as other recreational

facilities.

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
5.2 Implementation of the Work
Program of the Institute
In line with the decision of the
ECOWAS Authority on the adoption
adoption of a Single Track Approach of a Single Track Approach to
to monetary union in West Africa monetary union, WAMI undertook the
continued during the year under following activities:
review. These activities, including
multilateral surveillance of Multilateral Surveillance
macroeconomic developments, In collaboration with the ECOWAS
financial sector and trade integration Commission and the West African
issues, payments system development Monetary Agency, WAMI carried out
and the building of other relevant two multilateral surveillance missions
frameworks are essential pillars for the in April and September 2016. The
attainment of a sustainable monetary missions to the member countries of
union and economic development in the WAMZ assessed their
the sub region. macroeconomic performance in
compliance with the agreed
5.1 Management of WAMI convergence criteria and structural
During the year under review, WAMI benchmarks. The mission teams also
operated a new structure under a broad held discussions with relevant
restructuring arrangement approved by authorities in the member countries on
the Committee of Governors of the important policy issues and reviewed
WAMZ. In line with the new structure, progress made towards compliance
there were four departments, two units with the convergence criteria.
and the Office of the Director-General. Subsequently, an updated report on
The Director-General and Directors of Macroeconomic Developments and
the four departments and two units Convergence Reports were prepared
who constituted the Management by WAMI, reflecting the findings of
Board, held regular meetings on the the teams.
work programme and other
administrative issues. As at 31st Payments System Development
December, 2016, the Institute‟s staff Project
compliment was 45, comprising 36 The implementation of the West
professionals and 9 support staff. African Monetary Zone (WAMZ)
Members of staff continued to benefit Payments System Development Project
from the provision of health insurance, in The Gambia, Guinea, Liberia and
group life and personal accident Sierra Leone was completed in 2016.
The preparation of a Project

61
Completion Report (PCR) which Committee and Council held a meeting
commenced in March 2015 was each in March and October 2016,
completed in March 2016 and the respectively. The Report of the
Report has been submitted to the Technical Committee which was
AfDB. The report indicated that proper adopted by the Council covered the
maintenance and systems upgrade following: Translation of approved and
mechanisms should be put in place in finalized Phases 1 and 2 documents
order to ensure sustainability. into French and Portuguese;
Certification of Brokers; Proposed Tax
Financial Integration Issues Framework for WACMIC; Live data
The College of Supervisors of the feeds/ consolidated live data feeds;
West African Monetary Zone Plan for implementing International
(CSWAMZ) continued to provide the Conference, and Budget for Funding
main supervisory platform for WACMIC Secretariat and Activities.
maintaining and enhancing financial The maiden meeting of the Experts
stability in the Zone. The College held Committee on the Scheme on Quoting
all the four statutory meetings and Trading in West African Monetary
scheduled for 2016. The meetings Zone WAMZ national currencies was
provided an avenue for discussions on held at the African Regent Hotel,
issues affecting the banking industry in Accra, Ghana, in November, 2016. The
the Zone, including the necessity to: main objective was to provide
build effective partnership and guidance for the operationalization of
collaboration in cross-border banking the new Scheme for Quoting and
supervision; develop a banking crisis Trading in WAMZ national currencies
resolution framework; and reinforce in order to ensure its successful
measures for combating money implementation.
laundering and the financing of
terrorism. Discussions during the Statistical Harmonization
meetings also centered on member In the area of statistical harmonization,
countries experience with IMF the major challenge continued to be
Financial Sector Assessment that, while some member states
Programmes; framework for the produced both quarterly and annual
supervision and regulation of Islamic GDP figures, others were producing
banking, framework for supervision only annual GDP. Sensitization was
and regulation of microfinance largely dormant in all the WAMZ
institutions including current countries. However, plans were
challenges facing the sector; and underway to migrate the remaining
capacity building for bank examiners, countries into producing quarterly
among others. GDP data. On policy harmonisation,
WAMZ Member States continued to
The West African Capital Market implement the ECOWAS trade-related
Integration Council (WACMIC) protocols. The ECOWAS Common
continued to harmonize the rules and External Tariff (CET) entered into
regulations for the issuance and trading force on January 1, 2015, and by the
of financial securities across the end of 2016, Nigeria and Ghana were
Economic Community of West African the only WAMZ member countries to
States (ECOWAS). The Technical have commenced implementation. The

62
rest of the WAMZ Member States recommendations for ECOWAS
were yet to start due to technical or Commission to involve WAMI in the
legislative reasons. ECOWAS Common Trade Policy
Experts Working Group by virtue of
Trade and Regional Integration the Institute‟s technical support in the
The Ministry of Commerce and formulation of the national trade
Industry of the Republic of Liberia policies of The Gambia, Guinea and
successfully hosted the Eighth Edition Sierra Leone, and WAMI should
of the West African Monetary Zone encourage the WAMZ Member States
(WAMZ) Trade Ministers‟ Forum in that are yet to implement the CET
November 2016. The theme of the (Liberia, The Gambia, Guinea and
Forum was “Opportunities for Sierra Leone) to do so by end of March
Development through Regional Trade 2016, in compliance with the directive
Integration”. The key outcomes of the of the ECOWAS Heads of State and
Forum included the adoption of the Government.
WAMZ Trade Integration Index and
for it to be updated and published The 15th Meeting of the ECOWAS-
annually, approval for WAMI to seek WAMI Joint Task Force (JTF) on
support from development partners to Trade-related Issues was held at the
carry out informal cross border survey West African Monetary Institute in
in the WAMZ, and for WAMI to Accra, Ghana, from November 29-
collaborate with Afreximbank to carry December 1, 2016. The review of the
out joint programmes and to sensitize Report of the 14th Meeting of the JTF,
the Member States of the WAMZ on update on the construction of WAMZ
the activities of Afreximbank and how trade integration index, outcome of the
they can access its products and Trade Ministers Forum in Liberia 2016
services. and implementation of the ECOWAS
trade and trade-related protocols and
The 14th Meeting of the ECOWAS- conventions and working visit to an
WAMI Joint Task Force (JTF) on ETLS accredited company in Ghana,
Trade-related Issues was held at the formed the basis of the deliberations of
ECOWAS Commission in Abuja, the meeting. A major outcome of the
Nigeria, from February 16-19, 2016. meeting was for ECOWAS
The review of the Report of the 13th Commission to indicate by the end of
Meeting of the JTF, update on the the first quarter of 2017, activities
construction of the WAMZ Trade identified under the WAMZ Trade and
Integration Index, outcome of the Transport Facilitation Assessment
Trade Ministers‟ Forum in Banjul in (TTFA) report it is willing to cede to
2015 and implementation of the WAMI for implementation in the
ECOWAS trade-related protocols and WAMZ member countries.
conventions and working visit to the
Nigeria Customs Services, the National Legal Issues
Approval Committee in the Ministry of The Legal Unit continued its role as
Foreign Affairs and the ECOWAS legal advisor to the Institute and to the
Parliament, formed the basis of the WAMZ project covering all aspects of
deliberations of the meeting. Key the work programme with emphasis on
outcomes of the meeting included the the Payments System, the ACBF

63
Projects and the College of Supervisors its commitments and obligations to the
of the WAMZ. The 17th Meeting of stakeholders. During the review
the Legal and Institutional Issues period, two training programmes were
Committee (LIIC) of the WAMZ was funded by the project. The first one
held in Accra, Ghana from October 11- was “Techniques of Report Writing”,
14, 2016, to review the draft Model which sought to improve report writing
Banking Act (MBA). Comments and and communication skills of WAMI
suggested amendments were made and staff. The second training programme
WAMI was now finalizing the draft was a regional workshop on
MBA for consideration at the next “Assessing the Basel Core Principles
LIIC meeting to be held in the first (BCP) for effective Banking
quarter of 2017. Supervision for WAMI staff-members
and banking supervisors in the
Study on the Establishment of WAMZ WAMZ”, with the aim of
Commission strengthening the capacity of bank
In line with directive by Council, a examiners to undertake self-
study on the proposed WAMZ assessments as well as peer-reviews on
Commission and cost estimates were compliance with the BCPs. The project
presented. The study was informed by also funded other activities including
an anticipated work programme the 7th Annual Conference on
anchored on key pillars of trade Regional Integration in Africa, the 21st
integration and community Meeting of the College of Supervisors
development, financial integration and of the West African Monetary Zone
market development, infrastructure and (CSWAMZ), and Construction of
energy and economic affairs and Trade Integration Index for the WAMZ
international cooperation.
5.3 WAMZ Statutory Meetings
The draft estimates were prepared
based on several assumptions. Further Accra Meetings
to these assumptions, two scenarios Technical Committee: The 38th
were explored: scenario one envisaged Meeting of the Technical Committee
a full complement of a Commission of the West African Monetary Zone
including positions for Commissioners, (WAMZ) was held at Kempinski
while scenario two envisaged a Hotel, Gold Coast City, Accra, Ghana
Commission without positions for on 11th and 12th January 2016, to
Commissioners but Heads of deliberate on the status of
Directorates. implementation of the West African
Monetary Zone Work Programme. The
African Capacity Building Foundation technical documents prepared by the
(ACBF) Project West African Monetary Institute
Project implementation in 2016 started (WAMI) formed the basis for the
relatively slow due to delay in deliberations
receiving replenishment from ACBF.
In order to avoid decline in project Committee of Governors: The 32nd
implementation rate, the Institute Meeting of the Committee of
bridged some of the gaps with Governors of the West African
proactive pre-financing, thus meeting Monetary Zone (WAMZ) was held on

64
 14th January 2016, to deliberate on the such as the issuance of
status of implementation of the infrastructure bonds and PPP
WAMZ Work Programme. The Report arrangements;
of the 38th Meeting of the Technical  further strengthen fiscal
Committee of the WAMZ formed the consolidation by addressing all
basis of the deliberations. tax administration
The Committee of Governors endorsed inefficiencies, broadening
the report of the Technical Committee revenue base, rationalizing
and made some recommendations for expenditure and restructuring
the consideration of the Convergence maturity profiles of debts; and
Council.  provide monthly data on key
indicators to enable WAMI
Convergence Council: The 35th regularly update the analysis of
Meeting of the Convergence Council macroeconomic developments
of Ministers and Governors of Central in the Zone;
Banks of the West African Monetary  urged Member States that have
Zone (WAMZ) was held at Movenpick not yet commenced
Hotel, Accra, Ghana on 15th January implementing the CET to do so
2016, to deliberate on the status of as soon as possible;
implementation of the West African  endorsed the adoption of end-
Monetary Zone Work Programme. The period inflation for the
Report of the 32nd meeting of the assessment of macroeconomic
Committee of Governors formed the convergence in view of its
basis of the deliberations and appropriateness in the
decisions. formulation of monetary
policy;
After extensive deliberation on the
issues, Council took the following ii. urged Member States to
decisions: address the challenges of
restrictions on access to foreign
i. Adopted the Report on exchange for stock market
Macroeconomic developments and transactions and lack of
convergence as at end-June 2015 settlement mechanism in the
and urge Member States to: region to facilitate the capital
 redouble their efforts to ensure market integration process;
the attainment of the minimum
level of convergence required iii. noted the progress made in the
for the establishment of implementation of the WAMZ
ECOWAS monetary union by payments system project and
2020; the extension of the closing
date of the project to 31st
 address the infrastructure gaps December, 2016;
by providing adequate funding
for electricity, energy, road and iv. noted the Report on the 7th
railways. In this regard, Forum of the WAMZ Trade
Member States should explore Ministers and urge Member
sustainable funding options States to implement the

65
 recommendations of the Forum an adoption of a regional
to promote deeper trade approach to the matter; and
integration in the Zone and the
wider ECOWAS region; x. notwithstanding xi above,
Member States should
v. directed WAMI to speed up the individually/bilaterally pursue
finalisation of the study on the compliance with FATCA while
transformation of WAMI into a a regional approach was being
Commission and to circulate considered.
the Report in advance to
Member States for
consideration at the next Conakry Meetings
statutory meetings; Technical Committee: The 39th
Meeting of the Technical Committee
vi. approved the reappointment of of the West African Monetary Zone
the External Auditors, (WAMZ) was held at Riviera Royal
PricewaterhouseCoopers for Hotel, Conakry, Guinea on 1st and 2nd
the audit of the 2015 financial August 2016, to deliberate on the
statements of WAMI; status of implementation of the
WAMZ Work Programme. The
vii. approved the WAMI Work technical documents prepared by the
Programme and Budget for West African Monetary Institute
2016 in the sum of (WAMI) formed the basis for the
US$6,911,301.59 of which the deliberations.
total contributions of Member
States amount to Committee of Governors: The 33rd
US$3,490,873.41 as against Meeting of the Committee of
US$3,725,995.45 in 2015, a Governors of the West African
decrease of 6.31 percent; Monetary Zone (WAMZ) was held in
Conakry, Guinea on 4th August, 2016,
viii. directed WAMI to finalise the to deliberate on the status of
paper on the development of implementation of the WAMZ Work
national and regional banking Programme. The Report of the 39th
crisis resolution frameworks for Meeting of the Technical Committee
consideration and adoption by of the WAMZ formed the basis of the
Member States at the next deliberations. The Committee of
statutory meetings and Governors endorsed the report of the
incorporate provisions on Technical Committee and made some
regional crisis resolution in the recommendations for the consideration
draft model Banking Act; of the Convergence Council.

ix. directed WAMI to refer the Convergence Council: The 36th

issue of compliance with the Meeting of the Convergence Council
United States Foreign Account of Ministers and Governors of Central
Tax Compliant Act (FATCA) Banks of the West African Monetary
to ECOWAS Commission for Zone (WAMZ) was held in Conakry,
Guinea on 5th August, 2016, to

66
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 xii. directed WAMI to carry out a
December 2015; comprehensive study on
assessing the feasibility of
viii. approved the re-appointment of using pension funds of the
PricewaterhouseCoopers as Member States of the WAMZ
External Auditors of WAMI for for infrastructure financing and
their fifth and final year audit submit the report at the next
(for the financial year 2016) at WAMZ statutory meeting; and
a professional fee of
US$15,000.00 (Fifteen xiii. directed WAMI to collaborate
thousand U.S. Dollars only) with the Member States to
exclusive of VAT and other assess the practicability of the
incidental expenses at a Scheme on quoting and trading
maximum of US$750.00 (seven in WAMZ national currencies
hundred and fifty US Dollars bearing in mind the experiences
only); of earlier schemes and to
facilitate the finalisation of the
ix. directed WAMI to share the framework.
draft study on the establishment
of a WAMZ Commission with 5.4 WAMI Publications in 2016
relevant stakeholders in each During the year under review, the
Member State to ensure wider Institute published the following:
consultation and consensus
building and also incorporate  Financial Stability Report
the comments of the Technical (December 2015 edition).
Committee to further enrich the  West African Journal of
document; Monetary and Economic
Integration: (June and
x. directed WAMI to prepare an December 2015 editions)
implementation framework  2015 Annual Report
detailing the cost implications  WAMI Occasional Paper
and strategic plan for the Series: (June 2016 editions)
actualization of the WAMZ o “Prudential Indicators In The
Commission and submit the WAMZ: A Gap Analysis”
report at the next WAMZ o “Financial Integration in the
Statutory Meetings. West African Monetary Zone:
A Stocktake of The Journey
xi. directed WAMI to examine the So Far”
Memorandum of o “The Developmental Roles of
Understanding between the Central Banks in The West
European Union (EU), African Monetary Zone”
UEMOA and the ECOWAS
 Obstacles to Trade in the West
Commissions on the Regional
African Monetary Zone
Indicative Programme (RIP)
(WAMZ): Promoting
and provide implications for
Integration in the WAMZ
the WAMZ Programme.
(October 2016) and;

68
  West African Monetary Zone Interest income from the investment of
(WAMZ) Trade Integration the West African Central Bank Capital
Report (December 2016) (WACB) as well as the Stabilization
and Cooperation Fund (SCF)
5.5 Financial Accounts of WAMI amounted to US$63,622. This income
Highlights of financial performance of has been apportioned to the WACB
the Institute in 2016 as reported in the Capital and the SCF as agreed by
audited financial statements are Member States.
presented below:
Assets and Liabilities
Income and Expenditure The total current asset of WAMI at
The total income of the Institute for the December 2016 was US$64,452,422,
2016 financial year was US$3,644,133. comprising largely of Investment
This comprised US$3,490,873 from Securities of the West African Central
Membership Subscription, US$43,935 Bank Capital (WACB) as well as the
from Finance Income and US$109,325 Stabilization and Cooperation Fund
from Other Income. The total (SCF). Non-current Assets, made up of
expenditure for the year was property & equipment and intangible
US$4,322,973 resulting in a net assets amounted to US$251,065 which
operating deficit of US$678,840. The when added to current assets gave a
deficit of US$678,840 was caused by a total asset figure of US$64,703,487.
shortfall in revenue recognition in the
2016 financial statements, in Current liabilities of US$383,244 when
accordance with International added to accumulated fund of
Financial Reporting Standards (IFRS). US$1,733,459 and the West African
A savings of US$1,383,801 in 2015, Central Bank Capital (WACB) of
which was used to offset contributions US$28,909,842 as well as the
in 2016, led to a lower contribution of Stabilization and Cooperation Fund
US$3,490,873 by Member States (SCF) of US$33,676,942 results in
instead of US$4,874,674 if no savings total liabilities and Members fund of
had been made. US$64,703,487 at 31st December
2016.

69
 CHAPTER SIX

CONCLUSION

G lobal growth remained

sluggish in 2016. International
price developments were
generally mixed, as the advanced
economies and Sub-Saharan Africa
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
recorded higher inflation, while exchange rate variation, while Guinea,
Liberia, Nigeria and Sierra Leone
inflation in most of the emerging
satisfied the criterion on public debt to
market and developing economies GDP ratio.
declined. Foreign exchange
developments indicated that most of Implementation of the Payments
the major currencies weakened against System Development Project which
the US dollar. Commodity prices in was funded by the African
the world market commenced an Development Bank was successfully
upward trend in the second half of the completed in The Gambia Guinea,
year, on the back of increase in Liberia and Sierra Leone in the review
demand. period. WAMZ members continued to
make considerable progress on the
Growth in the WAMZ countries development of their respective
slowed in the review period, reflecting payments system. Remarkable
the subdued global growth. Real GDP progress was also recorded in the areas
growth declined in four of the member of institutional development and policy
states, but increased in the other two. harmonization.
Inflation increased zone-wide and
across five of the member states, with Nigeria and Ghana continued to make
most of the countries recording double- significant strides in the
implementation of the ECOWAS CET
digit inflation rates.
trade protocols and convention, and
Member States‟ performance on both implementation of the ETLS scheme
the primary and secondary showed some improvements across the
convergence criteria, deteriorated in Zone. The WAMZ banking industry
2016, relative to 2015. On the primary was relatively stable in 2016, despite
the adverse macroeconomic condition.
criteria, The Gambia and Liberia
In collaboration with the College of
maintained their performance, the
Supervisors, member states in the
performance of Ghana, Nigeria, and WAMZ continued to strengthen and
Sierra Leone worsened, but that of implement banking supervision
Guinea improved. The Gambia, Ghana processes, in line with international
and Sierra Leone satisfied one of the best practice. Reforms and policies for
primary criteria each, while Guinea, the regulation and deepening of non-
Liberia and Nigeria met three each. bank financial institutions, as well as
capital markets and pension funds were
Regarding the secondary criteria, The also initiated during the review period.
Gambia and Ghana showed

70
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:

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 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.

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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.

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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.

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 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.

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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.

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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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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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Financial statements

For the year ended 31 December 2016

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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

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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.

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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)

2.16 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.

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 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

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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)

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

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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)

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

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Financial statements

For the year ended 31 December 2016

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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)

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 -

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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

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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

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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)
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

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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 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

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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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 West African Monetary Institute

Financial statements

For the year ended 31 December 2016

Legal work program 30,637 11,847

789,038 508,943

30
 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

32
 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).

33