In a recent initiative to bolster economic resilience, Absa Bank Ghana has organized a seminar for its Business Banking clients focused on understanding and managing market risks effectively. The event, themed ‘Anticipate and Effectively Manage Market Risk’, aimed to provide insight into the current macroeconomic climate, highlighting potential market risks and outlining risk management solutions.
During the seminar, Andrews Akoto, Head of Trading at Absa Bank Ghana, offered a macroeconomic update that indicated a cautiously optimistic outlook for the domestic market.
Andrews emphasized the gradual recovery of consumer and business confidence, alongside a steady rebound in economic activity.
However, he also pointed out challenges such as the risk of a prolonged debt restructuring and potential fiscal slippages during election years. Despite these hurdles, he projected higher economic growth in 2024, driven by increased production capacities in the extractive industries and higher government spending. Andrews further addressed the start of an interest rate easing cycle and the expected performance of the currency in the coming year, despite existing vulnerabilities.
The seminar also featured a presentation by Gerald Nana Kusi, Head of Institutional Sales & Structuring, focusing on Absa Bank’s range of products designed to help clients navigate market uncertainties.
Gerald highlighted foreign exchange and interest rate risk management solutions, including contracts that guarantee future currency rates for clients seeking certainty, and those offering flexibility for varying client needs. Additionally, he showcased Absa Bank’s innovative approaches to managing interest rate risks, particularly beneficial for clients with floating-rate foreign currency obligations.
“Our aim is to equip the client to be able to manage some of the risks associated with their business, especially risks on interest rate and foreign exchange,” said Mr. Jacob Brobbey, Absa’s Head of Global Markets. He added, “It is the aim of Absa Bank to regularly engage clients, keep them updated on the economy to enable them make informed decisions regarding their businesses.”
The response from clients was overwhelmingly positive, with many expressing keen interest in the risk mitigation strategies presented. Mr. Yussif Olakunle Kareem, a seminar participant, shared his experience: “These sessions with Absa Bank have helped bridge the gap in terms of how the market is performing, and it has put my business in an advantageous position to help me forecast and plan properly for my business. I have also learnt through these sessions how to optimize the cost of running our business by accessing the right facilities often at a much lower cost than the prevailing market rates.”
This event underscores Absa Bank’s commitment to empowering its clients, emphasizing the importance of proactive risk management in ensuring a sustainable economic future. Adding to its dedication to customer-centric services, Absa Bank Ghana has recently unveiled its new brand promise, ‘Your Story Matters’.
This promise is a testament to the bank’s human-centred approach, fostering empathy, building strong partnerships, and ensuring seamless customer experiences. It highlights Absa Bank’s commitment to not just being a financial institution, but a dedicated partner in each client’s journey.
As Absa Bank continues to host such seminars, it remains dedicated to fostering an environment where clients’ stories and business journeys are central to shaping a resilient and prosperous tomorrow.
