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Porters 5 Forces

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National Economy
In 2012, Ghana’s economy witnessed a GDP growth of 7.1%. A budget deficit of GH¢8.7 billion was recorded (as revenue amounted to GH¢16.1 billion against an expenditure of GH¢24.8 billion in 2012) resulting in an overall fiscal deficit equivalent to 12.0% of GDP, against a target deficit of 6.7% of GDP. The deficit was financed mainly from domestic sources. The stock of public debt stood at GH33.5 billion,46.7% of GDP in 2012 increasing by 40% over that of 2011.Deterioration in the trade balance and an overall balance of payments that worsened, reversing theGH¢546.2 million surplus in 2011 to GH¢1.2 billion deficit had volatility implications for the Ghanaian currency. The Cedi eventually depreciated by17.5% in 2012.The stabilization efforts by the Central Bank saw a cumulative increase in the policy rate by 250basis points reaching 15% by June of 2012.Money market rates responded in same direction– 91-day Treasury bill rose from 10.7% in December2011 to 22.4% in June 2012 and ended the year at 23.1%. Rates of other instruments moved largely in similar trajectory. Growth in monetary aggregates moderated in2012 as broad money (M2+) grew by 24.3%compared to 33.2% the previous year. Credit to the private sector by deposit taking banks grew by 34.1% in 2012 compared to 26.3% in 2011.
A positive GDP growth implies that MTN had
In 2013, Bank of Ghana has maintained its policy rate at 16% citing a balanced economic growth. Ghana’s inflation rate in August 2013 fell marginally to 11.5% after six consecutive months of increases hitting 11.8% in July 2013.
A positive gdp growth is an indication of a booming economy. In a booming economy demand is high and product shelf life is reduced. MTN therefore has a lot to gain from Ghana’s positive economic growth
Since companies cannot borrow funds bellow the treasury bill rate, a high treasury bill rate...

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