- 50% of Ghanaians saving GH¢1 yearly will amount to GH¢5.4bn
Speakers at the National Savings and Economic Growth programme have called for a collective effort by the citizenry to internally generate funds, which the government can tap into, in order to reduce the country’s dependency on international bodies for funds.
They argued that the country’s economic growth and transformation largely depends on citizens’ commitment to save and invest hence the need to whip the interest of savings and investment in citizens to boost economic growth.
Speaking on the theme, Culture of Savings and Investment for Economic Transformation, Chartered Accountant and Tax Advisor, Kingsley Adjenku-Hayford elaborated that with the total population been 30.8million, 50percent of Ghanaians saving GH¢1.00 everyday will amount to about GH¢1.4billion.
“And if everyone does this, for four years, that will be enough money to even fund our budget. Every money you put at the bank, a portion is invested and every sector benefits, what it means is that when citizens improve on the rate at which they save, the government can tap into the local savings by borrowing locally.
And since the country cannot move away from deficit financing, when it borrows locally with arrangement with the banks, you will realize that there won’t be exchange rate fluctuations, there won’t be interest payments that will move us to change our cedis into foreign currency which will squeeze the economy. Ghanaians inculcating the habit of savings and investment to save the country’s dependency will support the economy to a large extent,” he said.
The argument being put forth is that the international bodies from which the country borrows, have made efforts to save and invest in their economy, the more reason Ghana must adapt to holistic approaches towards raising revenue internally.
Chartered Banker, Patrick Baah Abankwa added that aside joining the collective effort to generate funds that the government can tap into, on the individual level, savings offers security for the future and offers an individual liquidity in that there’s money as at when it is needed.
He advised that individuals who intend excelling with their savings routines must be disciplined, develop a personal budget to control individual expenditure and set realistic goals and work towards it.
Paul Kofi Mante, Managing Director EDC investments LTD, added that to be financially independent, one must be willing to sacrifice short time consumption.
He said while it is important to do thorough research and seek appropriate information on investment, areas where individuals could pay attention to for investment includes; paper assets – treasury bill, treasury bond, fixed deposits, collective investment schemes, mutual funds and unit trust, provident fund and others. Also, one can invest in properties and businesses.
The trio also urged that the government take a look at regulating the transport sector to improve productivity.
“One transformation that if it done can improve productivity is in the transport sector, there are a lot of cars that chokes our roads every morning and evening with huge traffic, however we have ayalolo and metro buses, all we need is implementation, so that people can park their cars and join the buses at least in the morning to get to work early and improve productivity,” they suggested.