President Akufo-Addo explained that one major challenge of the transformation agenda of the country is access to and cost of capital.
The president made this call when he spoke at the last plenary session of the 2018 African Transformation Forum (ATF), 2nd Edition, organized by the African Center for Economic Transformation (ACET) at the Movenpick Ambassador Hotel.
He was part of a six-member panel moderated by BBC’s Sophie Ikenye. President Akufo-Addo explained that one major challenge of the transformation agenda of the country is access to and cost of capital.
He added that this is because the banks in Ghana do not want to enter into any risky venture.
“In our own country, Ghana, the banks have in the last twenty or thirty years been very content at making lots of money by doing very passive things and not being particularly involved in the risk-taking that contributes to economic development and transformation,” the President said.
The President said this could be because of the current structure of Ghana’s financial and banking sector.
“The foreign-owned banks are the main players in our economy and they have their own goals which are not necessarily about the development of the country but about the profits that they make. It is ok, I don’t have any difficulties with people wanting to make money, but I do have a problem with making money in an environment whereby it is not making a significant contribution to the transformation of the economy.”
“Policymaking that would promote indigenous banks in our country to grow and be strong and to take on the role of providing the financial well workshop for the transformation we are looking for. Without having banks that are ready to finance relatively risky ventures both in industrial and agricultural initiatives, it is going to be difficult in making the transition we are seeking,” the President added.
Meanwhile, the President of Rwanda, Paul Kagame said that there have been several discussions on the transformation of the African continent, however, it is now time to actually act on the many policies that have been developed.
He added that the vast resources, both natural and human available on the continent leave the continent with no excuse as to why we should not be able to transform Africa.