Financial resilience crucial amidst global challenges – Dr. Godwin Acquaye

Dr Acquaye
Dr. Godwin Acquaye, Chief Executive Officer-Business and Financial Times (B&FT)

By Sandra Agyeiwaa OTOO

The Chief Executive Officer (CEO) of the Business and Financial Times (B&FT), Dr. Godwin Acquaye has emphasized the necessity of financial resilience in the face of global difficulties, as well as the critical need to protect investors’ interests.

“As we convene here today, we must acknowledge the challenges that have tested the resilience of our financial sector. The global pandemic and its aftermath have exposed vulnerabilities, underscoring the need for ethical standards, professionalism, and a steadfast commitment to protecting the interests of investors,” he stated.

Dr. Acquaye further stated that, notwithstanding the overall low savings rates in Sub-Saharan African (SSA) countries, both at the public and private levels, there is significant variation across countries. He stated that a study published in 2022 by the United Nations University World Institute for Development Economics Research and the Institute of Statistical Social and Economic Research (ISSER) found that, while Ghana is classified as a lower-middle-income country, its savings rates do not compare favorably to those of its West African counterparts such as Nigeria and Cote d’Ivoire.

He went ahead to cite successes in domestic financial initiatives, such as the Domestic Debt Exchange Programme (DDEP), to emphasize the importance of investing culture reform and financial education in addressing persisting security and risk management concerns.

“The recent Domestic Debt Exchange Programme (DDEP) has also brought about a shift in our investment culture, underscoring the importance of diversification and financial education. Perhaps, more than anything else, it has highlighted the need for individuals and institutions alike to re-evaluate their investment strategies and embrace a more holistic approach to risk management,” he stressed.

Dr. Acquaye emphasized the reliance on institutions such as the World Bank due to insufficient national statistics, suggesting increases in accuracy.

“In our national discourse, the lack of comprehensive data is a recurring challenge, often forcing us to rely heavily on institutions like the World Bank. This reliance sometimes leaves us in a state of uncertainty, as we are constrained to make educated guesses rather than precise assessments. While we acknowledge the efforts of institutions like the Ghana Statistical Service and the Bank of Ghana in narrowing this data gap, however, there remains ample room for improvement,” he noted.

He called for collective responsibility to establish confidence in the investing community, emphasizing trust and openness as critical components of the financial ecosystem.

“It is our collective responsibility to instill confidence in the investing community, reassuring them that their hard-earned savings and investments are secure. We must work tirelessly to create an environment where ethical practices are not just a catchphrase but a way of life, fostering trust and transparency in our financial institutions. Only then can we truly unlock the full potential of our nation’s savings and investment ecosystem,” he remarked.

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