Reviewing document before signing as guarantor is paramount

The Bank of Ghana’s advisory on financial literacy has outlined six essential factors to consider before guaranteeing a loan for someone else.

These factors range from understanding the terms involved to realizing the legal ramifications, seeking expert advice, and other crucial considerations.

Individuals must take these factors seriously to avoid facing severe consequences if the loan conditions are breached.

Here are the six factors to consider before acting as a guarantor in a loan deal:

1. Understand the role of a guarantor

A guarantor is responsible for repaying the loan if the borrower defaults on payment. This means the guarantor will settle the debt, including interest, when necessary.

2. Recognize your legal and financial responsibility

Acting as a guarantor means the loan agreement will be documented and recognized by the legal system. Failure to fulfill the obligation will have serious consequences. Therefore, one should be cautious about their financial worth, as it could be jeopardized by serving as a guarantor.

3. Evaluate the borrower’s ability to pay

It is crucial to ensure the borrower is capable of repaying the loan, considering their financial state. The guarantor should verify that the borrower has a stable income and a contingency plan for loan repayment to avoid future controversies.

4. Review the loan agreement carefully

Before signing a loan agreement, one must have an in-depth understanding of the terms and conditions.

Signing documents without full knowledge of the conditions and implications could endanger one’s finances or reputation if things go wrong.

5. Do not rely solely on trust or relationships

Personal relationships should not be the reason for guaranteeing a loan. Instead, consider the person’s financial ability to make repayment.

Conduct due diligence on the borrower’s repayment track record to make an informed decision, as defaulting on the loan will place a financial burden on the guarantor.

6. Seek independent advice if in doubt

If unsure about financial terms and conditions, consult an expert for advice before signing loan documents as a guarantor. Private financial advisors can help clarify doubts and prevent complications in the future.

SB/MA

The Central Regional Health Directorate has raised concerns over the rise in cholera cases, attributing it to the inconsistent water supply affecting residents.

Officials have cautioned that, without prompt intervention to resolve the water crisis, residents may face an increased risk of infection.

Speaking to JoyNews on Wednesday, January 29, 2025, the Deputy Director of Public Health in the Central Region, Dr Joojo Cobbinah, highlighted that limited access to potable water remains a significant factor behind the surge in infections in the region.

“Cholera thrives in the absence of water; people might not get access to water to wash their hands, flush their water closets, clean their vegetables properly, even the disposal of waste at a point might require water. If we don’t have water, one of the preventative measures is hand washing. Imagine we don’t have hand washing facilities at different points when people aggregate, it becomes difficult to contain and eliminate the cholera situation.

“The leadership of our communities, our districts, should take steps to ensure the provision of water. This will mean we need to bring in tankers with water to come and support these communities who do not have water,” he stated.

Data from the Regional Health Directorate reveals that 14 people have succumbed to cholera infection since the first case was recorded in late October 2024.

So far, 180 confirmed cases out of 1,929 suspected cases have been recorded while 28 others are undergoing treatment at various health facilities.

It is a great honour to address this distinguished gathering of Heads of State, policymakers, and business leaders, all united by a common vision of a prosperous and self-sufficient Africa.

This conference exemplifies our shared commitment to unlocking Africa’s full potential and ensuring that the continent occupies its rightful position in the global economic landscape. The theme of African Prosperity directly addresses the aspirations of our people: an industrialised, integrated, and inclusive Africa.

AFRICA AT A CROSSROADS
Africa is at a crossroads. On the one hand, we boast immense natural wealth, a youthful and dynamic population, and growing technological advancements. On the other, we continue to grapple with economic disparities, infrastructure deficits, and structural barriers that impede our progress.

The good news is that our destiny is in our hands. Our actions today—through decisive leadership and strategic partnerships—will define the future of this continent.

TRADE AND ECONOMIC INTEGRATION: THE AFCFTA OPPORTUNITY
One of the most transformative initiatives of our time is the African Continental Free Trade Area (AfCFTA). With the potential to create the largest free trade area in the world, AfCFTA represents a game-changing opportunity for African businesses, entrepreneurs, and industries.

However, trade liberalisation alone is not enough. We must:
1. Invest in infrastructure to facilitate trade—efficient roads, rail networks, ports, and digital connectivity.
2. Strengthen intra-African supply chains to ensure that our industries produce goods and services that meet regional and global standards.
3. Harmonise trade policies to eliminate non-tariff barriers and reduce business costs across borders. Committing to these actions can unlock a $3.4 trillion market, creating jobs and prosperity for millions of Africans.

INDUSTRIALISATION AND VALUE ADDITION
Africa must move beyond exporting raw materials to producing finished goods. Whether it is cocoa in Ghana, oil in Nigeria, copper in Zambia, or diamonds in Botswana, we must process and add value to our natural resources.

By doing so, we will enhance our share of global trade and generate sustainable jobs for our citizens. We must ensure indigenous ownership of our natural resources. Capital and technology are at our disposal to boost our involvement in utilising our natural resources.

Governments must, therefore, work hand in hand with the private sector to drive industrialisation through:
1. Special Economic Zones (SEZs) that encourage manufacturing and innovation.
2. Access to finance for small and medium-sized enterprises (SMEs), which are the backbone of our economies.
3. Investment in technical and vocational education to equip our youth with the skills needed for the industries of the future.

LEVERAGING TECHNOLOGY AND INNOVATION
The Fourth Industrial Revolution presents Africa with a golden opportunity to leapfrog traditional development models. Digital transformation can drive financial inclusion, improve public service delivery, and create new economic opportunities.

We must:
1. Expand internet access and digital infrastructure to bridge the digital divide.
2. Encourage fintech and e-commerce to facilitate trade and economic participation.
3. Invest in research and development (R&D) to support homegrown innovations. Technology can make Africa more competitive—if we embrace it strategically.

GOOD GOVERNANCE AND LEADERSHIP
Prosperity cannot be achieved without good governance, transparency, and accountability. Investors and businesses thrive where there is stability, predictable policies, and the rule of law.

Our youth are tired and frustrated at the lack of opportunities to realise their dreams and aspirations. Our decision to embrace democratic governance was supposed to yield a dividend that would improve the lives of our people and bring prosperity to all. Unfortunately, progress has been sluggish and intangible.

To maintain the faith and trust of our citizens in democratic and constitutional governance, we must accelerate our economic growth, expand investment, and provide employment opportunities for our youth.

As leaders, we must reaffirm our commitment to Strengthening democratic institutions and ensuring free, fair, and transparent elections. We must also fight corruption, which robs our nations of resources needed for development, and promote peace and security, as economic growth is impossible in times of conflict.

A CALL TO ACTION
Your Excellencies, distinguished guests, Africa’s time is now. The decisions we make at this conference must not end in resolutions alone. We must act with urgency, determination, and a shared vision for prosperity.

Let us rise to the occasion, break down the barriers that divide us, and build a strong, self-reliant, and globally competitive Africa.
As Ghana’s first President, Dr Kwame Nkrumah, once said: “The forces that unite us are intrinsic and greater than the superimposed influences that keep us apart.”

Let us embrace those forces and chart a new path for Africa’s economic transformation.

Long live African unity! Long live African prosperity!
Thank you.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

In retaliation for U.S. President Donald Trump’s tariffs, Canada is slapping 25 per cent tariffs on $155 billion worth of American goods.

Prime Minister Justin Trudeau’s reciprocal response comes as he and Trump have yet to even speak about the exchange of massive trade action, he revealed in a lengthy press conference Saturday evening.

Canada’s countermeasures will include immediate tariffs on $30 billion worth of goods as of Tuesday, followed by further tariffs on $125 billion worth of American products in 21 days time, to allow Canadian companies and supply chains to find alternatives.

Trudeau announced the federal government’s phased approach in an address to Canadians from Parliament Hill, during which he implored citizens to “choose Canada” when making purchases and travel plans.

“It might mean opting for Canadian rye over Kentucky bourbon, or forgoing Florida orange juice altogether,” he said. “Unfortunately, the actions taken today by the White House, split us apart instead of bringing us together.”

In his comments, Trudeau also noted the “real” consequences for Americans of Trump’s decision to hit Canada with a 25 per cent broad-based tariff on imports, as well as a 10 per cent tariff on energy.

“Tariffs against Canada will put your jobs at risk, potentially shutting down American auto assembly plants and other manufacturing facilities. They will raise costs for you, including food at the grocery stores, gas at the pump,” Trudeau said.

Among the items Trudeau says will soon start to cost U.S. consumers more are beer, wine, vegetables, clothing, shoes, household appliances, furniture, and sporting goods.

The prime minister said Canada is also considering “several” non-tariff measures related to energy and minerals, but those steps would be further developed in co-ordination with the provinces and territories.

“What is extremely important for me, and I think for all the premiers is that no one region of the country or one industry carries a larger burden than anyone else,” Trudeau said. “This only works if Canadians are fully united.”

The major announcement comes on the heels of weeks of anticipation and diplomatic efforts to avoid this moment, and after Trudeau meet with his cabinet and premiers on Saturday to discuss the national and historic response.

“If President Trump wants to usher in a new golden age for the United States, the better path is to partner with Canada, not to punish us,” Trudeau said, later noting that he’s been “reaching out” to Trump since his inauguration and he hopes “to speak with him sometime soon.”

Trump strikes first, tariffs take effect Tuesday

Trump made good on his threat to hit Canada with massive tariffs, signing an executive order imposing them on Saturday afternoon. The tariffs are expected to come into effect as of 12:01 a.m. on Tuesday.

On Saturday morning, the federal government was notified by the U.S. that Canada, Mexico and China were going to be hit.

Trump’s trade adviser Peter Navaro said in a call with reporters on Saturday that the energy tariff Canada would include electricity, natural gas, and oil.

Mexico is being hit with 25 per cent tariffs on all imports, including energy, while China is being subjected to a 10 per cent tariff across the board.

Shortly after receiving confirmation tariffs are coming, Trudeau held an emergency meeting with his cabinet ministers, and then convened a call with premiers where he briefed them on Canada’s initial retaliatory response.

One source in cabinet told CTV News that afternoon that they would not be surprised if Trump doubled his tariffs in response to Canada’s retaliation.

“We didn’t ask for this, but we will not back down,” Trudeau said.

Before his public address, Trudeau confirmed the looming U.S. tariff imposition on social media, and had a call with Mexican President Claudia Sheinbaum.

Sheinbaum has similarly ordered her Secretary of Economy to implement tariffs and non-tariff measures, to defend Mexico’s interests.

Federal and provincial governments have been co-ordinating for several weeks on a retaliation plan, and have been engaging with and leveraging stakeholders as part of a broader “Team Canada” approach.

Reaction from premiers streamed in from coast to coast ahead of Trudeau’s announcement. British Columbia’s Premier David Eby called Trump’s tariffs a “complete betrayal of the historic bond between our countries,” and revealed he was ordering provincial liquor stores to stop stocking alcohol from Republican states.

Other premiers have taken similar steps, voicing support for using all tools Canada can to end the tariffs.

How Trump is justifying tariffs

According to a White House “fact sheet” Trump is imposing the tariffs to address a national “emergency situation,” and “public health crisis.”

Trump took this incredibly consequential economic swipe from his Mar-a-Lago club.

“The extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl, constitutes a national emergency under the International Emergency Economic Powers Act (IEEPA),” reads the Trump administration’s rationale.

“President Trump is taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.”

As sources had indicated to CTV News earlier Saturday, Trump intends to keep the tariffs in place “until the crisis is alleviated.”

The White House claims Trump is leveraging America’s economic position “as a tool to secure our borders,” and that when voters elected him, they gave him a mandate to take this action.

Less than one per cent of fentanyl and illegal crossings into the United States come from Canada, with U.S. Customs and Border Protection seizing just 43 pounds of fentanyl at the northern border in the 2024 fiscal year.

Federal officials in Canada have repeatedly emphasized these and similar statistics, while initiating rounds of lobbying efforts with D.C. officials about Canada’s $1.3-billion border security enhancements in the face of Trump’s demand to crack down on the flow of migrants and drugs at the northern border.

That border plan includes deploying additional personnel, drones, surveillance equipment and helicopters to patrol the border.

Reacting to Trump’s trade action, Conservative Leader Pierre Poilievre said “we must put Canada first.”

Poilievre said his party condemns Trump’s “massive, unjust and unjustified tariffs on Canada’s already weak economy.”

Reviving his call for the federal Liberals to recall Parliament, Poilievre pointed to his six-pronged plan to address the tariffs, including retaliating with dollar-for-dollar tariffs, while trying to minimize the impact on Canadians.

NDP Leader Jagmeet Singh said what Trump has done is “unleash an unprecedented trade war on our country.”

“It is urgent that the government is ready to put financial help into the hands of workers who are impacted, and that we protect as many jobs as possible with a strong commitment to buy Canadian,” Singh said.

“We also need to pressure Trump to back off, and that means putting retaliatory tariffs in place urgently, and cutting off the supply of critical minerals to the United States.”

Singh also echoed Poilievre’s call to bring the House of Commons back in session. Parliament is currently prorogued – a step Trudeau took when he announced his resignation to give his party time to run the now-ongoing race to replace him – and isn’t scheduled to resume until March 24.

While Canada can enact counter tariffs through policy measures that don’t require legislative approval, sources have told CTV News that the federal government is also planning a potentially pandemic-sized stimulus package to help businesses and workers.

That relief, while the depth of it is dependent on what Trump dishes out, would likely require parliamentary sign-off as it would involve new spending measures.

Asked Saturday night whether he intends to bring Parliament back, the prime minister suggested he has the tools he needs in the short-term to act.

Tariffs will raise prices on both sides of border

Confirmation that the U.S. is sparking a trade war with its closest ally comes after weeks of evolving messaging from the president and his officials about the size, scope, and timeline for tariffs.

Just yesterday, U.S. sources floated a March 1 start to Reuters, which Trump shot down within hours, affirming there was “nothing” Canada could do to avoid the imposition of Feb. 1 tariffs.

Trump initially threatened in late November to impose across-the-board 25 per cent tariffs on all imports from Canada and Mexico on “Day 1” of his second term.

That didn’t happen. Instead, he signed an executive order initiating a study on broader trade practices, to be completed by April 1.

To offer a snapshot of the scope of the bilateral relationship, Canada buys more U.S. goods than China, Japan, France and the United Kingdom combined. The U.S. sells more goods to Canada than any other country.

Canadian officials have repeatedly sought to emphasize that Trump’s tariffs will raise prices for consumers on both sides of the border.

A 25 per cent tariff could shrink Canada’s GDP by 2.6 per cent and cost Canadian households an average of $1,900 annually. South of the border, it would result in a 1.6 per cent GDP drop and an average $1,300 hit to American households.

On a daily basis, $3.6 billion in goods and services cross between Canada and the U.S., making for a $1.3 trillion annual trading relationship that employs millions on both sides of the border, according to the Canadian Chamber of Commerce.

Of note, given Trump has decided to tariff energy, Canada is the number one supplier of energy to the U.S., supplying more than 99 per cent of U.S. natural gas imports, 85 per cent of U.S. electricity imports, and 60 per cent of U.S. crude oil imports, in 2023.

And, despite Trump’s repeated assertions of an unfair trade deficit with Canada, when oil exports are excluded, the U.S. has a trade surplus with Canada, according to federal data.

Reacting to the tariffs, the U.S. Chamber of Commerce said trade tensions “won’t solve” the problems Trump wants them to.

In a statement, the Chamber said instead they will “only raise prices for American families and upend supply chains.”