Banks in Ghana Have Been Passive, Time to Finance Relatively Risky Ventures - President Akufo Addo

President Akufo Addo has taken on both indeginous Ghanaian and foreign-owned banks operating in Ghana for what he calls passive activities that brings in money to the banks as compared to investing and financing relatively more risky ventures that can transform the Ghanaian economy.

Speaking as part of a six member panel discussion moderated by BBC's Sophie Ikenye at the last plenary session of the 2018 African Transformation Forum (ATF), 2nd Edition, organized by the African Center for Economic Transformation ( ACET) at the Movenpick Ambassador Hotel, President Akufo Addo said one major constraint to the agenda of transformation of the country is access to and cost of capital. This limitation he observes is due to the fact that banks in Ghana have shied away from financing risky businesses.

"In our own country, Ghana, the banks have in the last twenty or thirty years been very content at making lots of money by doing very passive things and not being particularly involved in the risk taking that contributes to economic development and transformation," the President said.

Structure of our Financial and Banking Sector

The President further observed that the structure of Ghana's financial and banking sector has perhaps contributed to the lack of desire on the part of banks to take all the needed investment and financing risk.

"The foreign-owned banks are the main players in our economy and they have their own goals which are not necessarily about the development of the country but about the profits that they make. It is ok, I don't have any difficulties with people wanting to make money, but I do have a problem with making money in an environment whereby it is not making a significant contribution to the transformation of the economy," the President said.

The Indigenous Bank

The state according to the President has a policy responsibility to ensure that good measures are put in place to strengthen indigenous banks to pick up the role of spearheading the financing of risky ventures in the country.

"Policy making that would promote indigenous banks in our country to grow and be strong and to take on the role of providing the financial well workshop for the transformation we are looking for. Without having banks that are ready to finance relatively risky ventures both in industrial and agricultural initiatives, it is going to be difficult in making the transition we are seeking," the President stated.

President of Rwanda

President of Rwanda, Paul Kegame in his submission during the panel discussion noted that there has been several discussions on the transformation of the African continent, however, it is now time to actually act on the many policies that have been developed. He added that the vast resources, both Natural and human available on the continent leaves the continent with no excuse as to why we should not be able to transform the African.

Nigerian Business Mogul

Negerian Business Mogul, Aliku Dangote, in his initial statement during the panel discussion identified two main challenges that directly affects Entrepreneurs who venture into business are the lack of power and inconsistencies in government policy. He called on the leadership of the African continent to ensure that power is available in their respective countries and that policy of government remain consistent with best business Practices that will engineer growth and the much needed transformation of the African continent.

ATF 2018

ATF 2018 is a dialogue for action on the development of Africa. It offers an unparalleled opportunity for the private sector and other non-state actors to get engaged and help shape the course of economic transformation in Africa. The forum will also take stock of progress made in the Pan-African Coalition for Transformation (PACT). Launched at ATF 2016, PACT is a mechanism for high-level government, private sector and civil society stakeholders to collaborate across sectors and borders to speed up implementation of transformative policies and reforms.

The conference also allows attendees to contribute directly to the formation of action plans for several PACT thematic chapters, including those focused on resource mobilization, manufacturing, agriculture, extractives and skills development. Lastly, the forum will also feature a private sector CEO roundtable in which a panel of leading executives shared their thoughts and strategies on the vital role of the business community in Africa's transformation process.

Source: Wilberforce A. Asare