By Setor QUASHIGAH (Dr)
Records show that the oldest company in the world is one that lasted for over 1,400 years. Between 578 A.D. and 2006, Kongo Gumi operated as the world’s oldest continuously operating company.
Started by a temple carpenter of the same name, the company lasted over 40 generations. His name and legacy endures, a testament to the power of sustained vision and wealth passed down through generations.
Such family legacies, while difficult to replicate, are not at all uncommon in the modern world. Indeed, across the globe similar stories abound. The Rothschilds banking dynasty shaped modern Europe.
Their influence is still strong in the global financial ecosystem. Henry Ford’s automotive empire transformed American industry and the Ford family continues to be an American institution. The impact of multi-generational wealth like this is undeniable, where the dearly departed founders laid a deep and solid foundation upon which their descendants can still be relevant to the same or divergent industries.
These families would build empires, shape the economies and set up their heirs for decades – even centuries of influence right up to the present. Their financial might is evidence of strategic foresight and careful wealth preservation.
Our local context
The narrative of intergenerational wealth, often remains as a big what-if, a tale usually spoken of with a wistful shake of the head. Many successful businesses, built on years of sweat and sacrifice rarely survive the transition to the next generation. This oft-repeated misfortune isn’t the result of a lack of ambition or work ethic but often an unintentional approach to wealth preservation and transfer. The focus remains on building for the present, leaving the future of that wealth vulnerable.
Understanding available options is crucial for wealth transfer. For many such businesses whether in manufacturing or extractive industries, the road to riches might not have had direct links with banking. However, to sustain this wealth, a shrewd understanding of how the age-old world of global finance is needed to be at the cutting edge.
Diversifying portfolios
Market events often underscore the need for smart investors to remain abreast with the times and review their portfolios on an ongoing basis to ensure investments are aligned with their financial aspirations.
This underscores the critical need to maintain diversified portfolios at all times. Diversification is more than just spreading risk. It gives investors the opportunity to participate in the upside of the market in addition to downside protection. Spreading investment portfolios across different asset classes, currencies, sectors, and geographies allows investors to build portfolios that remain resilient through the various stages of economic cycles. This also promotes the ability to capitalise on emerging opportunities and avoid the inherent vulnerability of relying on a single asset class.
Beyond traditional investments, private equity presents a compelling avenue for building intergenerational wealth. Investing in promising Ghanaian companies, particularly in sectors poised for growth like technology or renewable energy, not only generates attractive returns but also contributes to the nation’s economic development.
Furthermore, stretching horizons beyond Ghana’s borders to expand reach into other African countries could potentially enhance investment return profiles. With the continent’s growing economies and youthful demographics, Africa presents a compelling investment case.
Navigating this landscape, however, requires expertise. Understanding the distinctions of each market, from geopolitical risks and cultural nuances to the exciting fintech landscape, is crucial. This is where partnering with institutions experienced in navigating the complexities of cross-border investments becomes invaluable.
As a bank, Standard Chartered is proud of the presence and expertise of our personnel across Africa. Case studies abound of the bank’s influence in various sectors in countries with different languages, tax regimes, and regulatory frameworks.
It is important to remain guided by past events while keeping an eye out for future opportunities. More than ever, the world is rapidly evolving. The great founders’ next generation, Millennials and Gen Zs who are digital natives comfortable with the language of cryptocurrency and blockchain, will demand a different approach to wealth management. Equipping them with the required levels of financial literacy will give them the ability to not just inherit wealth but to grow, protect and preserve it for future generations. This is where embracing innovative digital wealth platforms like Standard Chartered offers, platforms that offer real-time insights, personalized advice, and seamless access to global markets, becomes an advantage and a necessity.
Standard Chartered’s investment subsidiary – Standard Chartered Wealth Management Limited Company – is well positioned and adequately resourced to deliver tailored investment advice and support clients with top-of-the-range investment opportunities that generate steady streams of income in multiple currencies. Its team of licensed professionals provide deep insights to help make sound decisions at every bend.
No economy has prospered without the wealth of titans of industry that have handed down tangible wealth as a trust bequeathed to future yet unborn generations. Ghana’s is no different. We look forward to an emerging class of business owners obsessed with leaving behind a legacy that far outlives them for the benefit of all.
Building for generations requires more than just financial success today. Without a conscious, strategic approach to wealth preservation and transfer, this will remain a wish on paper. By embracing diversification, exploring new avenues like private equity, and equipping future generations with the tools and knowledge to navigate an increasingly complex financial world, we can help ensure that the stories of Ghanaian success stories transcend generations to come.
Dr. Quashigah is Head, Affluent & Wealth Management of Standard Chartered Ghana PLC.
