The Ministry of Finance (MoF) has organised a financial education campaign at Damongo in the Savannah Region, cautioning residents about the risks associated with engaging in business transactions with fraudulent financial institutions that promise unrealistic returns of 100 percent on investments.
It said the prevalence of Ponzi schemes in the country underscores the importance of exercising vigilance when choosing where to save.
During the campaign, participants were advised to request certificates and seek expert advice to verify the legitimacy of financial entities before engaging in any transactions. The initiative specifically targetted vulnerable groups, trade unions and individuals involved in the informal sector, aiming to enhance their understanding of various financial aspects such as savings, credit, digital financial services, insurance, investments, Ponzi schemes, retirement and pension schemes.
Representatives from prominent organisations – including the National Insurance Commission, Bank of Ghana, NPRA, Security and Exchange Commission (SEC) and Trade Union Congress (TUC) – joined forces to educate participants about their roles and stress the significance of planning for old age.
The Ministry of Finance collaborated with the World Bank, Bank of Ghana and other financial institutions to launch the National Financial Education Campaign Programme. The primary goal of this initiative is to strengthen the financial capabilities of Ghanaians and promote responsible financial behaviour, aligning with current developments in the economic and financial sectors. The campaign addresses prevalent issues within the financial sector and emphasises the necessity for a comprehensive and timely financial education programme.
Mr. Augustine Donkor, a representative from the Bank of Ghana, cautioned traders against falling for vague promises that endanger their modest investments. He emphasised that no legitimate institution can offer a 100 percent return on investments, citing the current loan rate of 25-30 percent. He encouraged individuals to save with reputable financial institutions to secure a better future, highlighting the unpredictable nature of tomorrow.
“It is crucial to cultivate the habit of saving with trustworthy financial institutions for a better future. Saving is essential as uncertainty looms ahead,” Mr. Donkor advised.
Regardless of one’s background, engaging in any trade activity provides an opportunity to save – even with minimal amounts and consistency. Mr. Robert Quaye from the Security and Exchange Commission (SEC) emphasised the significance of conducting business with certified institutions to ensure the safety of savings for the future.
Additionally, Mr. Mawuli Zogbenu, Senior Manager/Head of Public Relations at the National Insurance Commission (NIC), emphasised the importance of insuring shops and businesses against unforeseen accidents. He advised traders to save for their future with certified insurance companies.
Mr. Benjamin Torsah-Klu, Chief Economic Officer at the Ministry of Finance, highlighted the lack of basic financial understanding among many Ghanaians. Crucial financial matters, such as the impact of inflation on the value of money, interest computation on loans and investments, and awareness and utilisation of financial products and services remain unfamiliar to a significant portion of the population. The campaign aims to reach vulnerable communities, particularly those in rural areas, to educate them about these financial matters.
The campaign will be conducted across all sixteen regions of Ghana, with a primary focus on the informal sector and youth groups who are often targetted by Ponzi schemes. By raising awareness and providing essential knowledge, the Ministry of Finance seeks to empower individuals to make informed financial decisions and protect themselves against fraudulent practices.
