The Managing Director of the Agricultural Development Bank (ADB) PLC, Alhaji Alhassan Yakubu-Tali, has expressed confidence that the ongoing economic rebound will spur and sustain growth within the financial sector.
This optimism follows the International Monetary Fund’s (IMF) approval of the second review under its US$3 billion Extended Credit Facility (ECF) arrangement and the implementation of key structural reforms by the Bank of Ghana, the Ministry of Finance, and other stakeholders.
Alhaji Yakubu-Tali highlighted that these developments are expected to result in a decline in inflation, creating a ripple effect throughout the financial sector and the broader economy. He anticipates that this will lead to lower loan interest rates, higher Treasury bill (T-Bill) rates, stabilization of the cedi against the dollar, and improved gross international reserves.
The ADB Managing Director commended the efforts of the Bank of Ghana (BoG) on the ongoing fiscal consolidation, tightening monetary policy, and achieving relative stability in the exchange rate and declining inflation.
“I am optimistic that the economic rebound will restore confidence in the financial sector, as customers will be able to access more loans at lower interest rates,” Alhaji Yakubu-Tali emphasized. “This renewed confidence is expected to drive increased borrowing and lending activities, further fueling economic growth and stability,” he added.
Alhaji Yakubu-Tali also referred to the Bank of Ghana address titled “Maintaining structural reform momentum…”, which indicates positive signs of recovery in the first quarter of 2024, with overall Real GDP growth for Q1 2024 at 4.7 percent, the highest since Q1 2022, compared to 3.1 percent growth recorded in the same period of 2023. It also shows that industry grew the most at 6.8 percent, followed by Agriculture at 4.1 percent and Services at 3.3 percent. These, he said, reveal signs of a resilient economy.
He pointed out that implementing key structural reforms is crucial in bolstering the overall economic recovery effort of the country. “The ongoing structural reforms will not only stabilize the macroeconomic environment but also provide a solid foundation for sustainable growth and development in the financial sector,” Alhaji Yakubu-Tali said.
The ADB MD expressed confidence that the financial sector will benefit immensely from these positive economic indicators. He believes that with the right policies and continuous efforts towards maintaining fiscal discipline and monetary stability, the financial sector will experience robust growth, leading to a stronger and more resilient economy.
Alhaji Yakubu-Tali reiterated ADB’s commitment to supporting the economic recovery process by providing accessible and affordable financial services to its customers and the general public. “ADB remains dedicated to playing a pivotal role in fostering economic growth and financial inclusion across Ghana,” he stated.
The Agricultural Development Bank PLC is at the final phase of its additional capital injection process. The Bank has also opened its 89th network location in Ejisu, next to the Ejisu Divisional Police Office in the Ashanti. The old ADB branch (now Ejisu Market Agency) will also continue to operate after its renovation, to complement the new branch.
