Banker advocates paradigm shift in investment strategies
• Atta Gyan — Deputy Managing Director, Fidelity Bank, speaking as the keynote speaker at the Money Summit
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Banker advocates paradigm shift in investment strategies

Deputy Managing Director of Fidelity Bank, Atta Yeboah Gyan, has stressed the need for a paradigm shift in investment strategies across sectors. 

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Speaking at an investment forum in Accra, he also indicated the critical role of savings and investment in fostering entrepreneurship, economic growth and financial resilience. 

He acknowledged the challenges of navigating today's economic landscape, marked by high inflation, interest rates and social inequality.

Mr Gyan observed that traditional approaches to saving and investing were no longer sufficient and thus called for a paradigm shift towards sustainable investment.

"The challenges we face today as a nation are many, including high inflation, rising interest rates, slow economic growth, threats of sovereign default, public debt restructuring, climate change, social inequality and technological disruption." 

"These multiple challenges have varied adverse effects on the economy and the citizenry. High levels of inflation, as we know, erode the purchasing power of savings, making it essential to seek out investment opportunities that offer returns that outpace inflation," he said.

Mr Gyan further outlined key roles for various stakeholders in promoting a healthy investment and savings culture. 

He said investors needed to adopt a holistic risk management approach and seek financial literacy to empower themselves to make informed decisions about investments, understand the risks involved and navigate the complexities of the financial markets.

Tailor-made solutions

Banks, he noted, must offer tailored investment solutions and utilise technology to enhance accessibility. 

He emphasised the need to integrate environmental, social and governance factors into investment strategies not only to mitigate the risks but also to attract socially conscious investors while contributing to sustainable economic growth.

Enforcement

Mr Gyan also urged regulators and policymakers to enforce regulations, promote market stability and implement tax incentives for long-term savings.

"We must consider more tax incentives. If, as a nation, we want to promote a culture of savings, we must induce that through tax incentives. 

If, for instance, I could save towards a child's education and I could be allowed that as a deduction from my tax obligations, I have an incentive to save because I know that by saving, I will have to save something on my tax obligation. We must prescribe which long-term investments will qualify for tax incentives and pursue them," Mr Gyan said.

He challenged the current narrow perception of investment opportunities and encouraged the exploration of possibilities beyond traditional assets while considering investments in the informal sector and social ventures such as food joints and education.

Mr Gyan urged participants to chart a course towards a more sustainable and equitable future. He emphasised the need to channel resources towards sustainable energy, infrastructure and impact investing. 

By embracing innovation, and collaboration, focusing on social and environmental benefits, Mr Gyan said Ghana could build a more resilient and prosperous future for all.

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