Robust financial system key to drive economy — GSE MD
The Managing Director(MD) of the Ghana Stock Exchange (GSE), Abena Amoah, has called for greater collaboration between players in the financial sector to build a robust financial system.
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The Government of Ghana has plans to build a robust financial sector and make the country a financial service hub under the African Continental Free Trade Area (AFCFTA) framework.
At the opening of the “Money Summit”, Ms Amoah said for this year’s event, the government, regulatory bodies, financial institutions, private sector entities and civil society must work hand in hand.
“We need to foster a culture of transparency, integrity and accountability.
By strengthening governance frameworks, enhancing risk management systems and promoting ethical behaviour, we can build a financial ecosystem that commands trust and attracts investment,” she stated.
She said a robust financial system was the bedrock upon which sustainable economic growth in Africa could flourish.
That, she said, would enable capital mobilisation, drive financial inclusion, promote trade and investment, foster innovation, and support sustainable development.
Critical juncture
Ms Amoah pointed out that the theme for the summit "Africa’s Robust Financial Sector: The Catalyst for Sustainable Economic Growth", was timely; given the current global and domestic challenges and financial difficulties faced by the continent.
“We find ourselves at a critical juncture in our history - a moment filled with both challenges and immense opportunities.
“It is imperative that we explore the potential of our financial systems as catalysts for progress, prosperity, and sustainability,” she stated.
Mobilising capital
The MD noted that a robust financial sector would help mobilise capital for development, stating that access to capital was vital for entrepreneurs, businesses and infrastructure development.
She said it would also provide a platform for efficient capital mobilisation, allocation and investment.
“It facilitates the flow of funds, allowing businesses to expand, innovate and create job opportunities.
By nurturing entrepreneurship and supporting the growth of small and medium-sized enterprises (SMEs), we can foster economic diversification and reduce reliance on traditional sectors,” she stated.
Financial sector key
The Chief Executive Officer (CEO) of the Business and Financial Times, Dr Godwin Acquaye, for his part, said the financial sector was key to the growth of the economy.
He said the sector was capable of efficiently allocating resources, assessing and managing financial risks.
“Globally, the financial sector is going through challenges and we are all feeling its pinch in our pockets and budgets.
The 2022-2023 financial year has been a challenging one in every sense of the word.
“Inflation is hovering around 45 per cent and commercial bank lending rate is in excess of 36 per cent. It was already clear that the ravages of COVID-19, the costly impact of the war in Ukraine have had a devastating impact on our economy and now the recent debt exchange programme is greatly affecting banks and businesses,” he said.
He said the Money Summit sought to enhance investor confidence and bring together actors in the financial sector to provide solutions that would anchor investor confidence in the economy, as well as ease the hardship and challenges of businesses and the average Ghanaian.
