Accra, May 3, GNA- Mr Atta Yeboah Gyan, Deputy Managing Director of Fidelity Bank, has called for a pragmatic strategy that promotes sustainable investments and an equitable future for generations.
He explained that the traditional approaches to savings and investments were no longer sufficient; thus, a paradigm shift towards sustainable investment would generate the required returns for investors.
He said this in a keynote address at the Business and Financial Times (B&F) Money Summit.
The event, under the theme: “Investing for the Future: Re-thinking Investment and Savings to Drive Sustainable Economic Growth”, was sponsored by Fidelity Bank, Ghana’s largest privately-owned bank.
It brought together key stakeholders to discuss the future of Ghana’s financial landscape.
The B&ft Money Summit 2024 provided a platform for stakeholders to collaborate, innovate, and mobilise resources towards sustainable development.
Mr. Gyan emphasised the critical role of savings and investment in fostering entrepreneurship, economic growth, and financial resilience.
He, however, acknowledged the challenges of navigating today’s economic landscape, marked by high inflation, interest rates, and social inequality.
“The challenges we face today as a nation are many, including high inflation, rising interest rates, slow economic growth, threats of sovereign default, public debt restructuring, climate change, social inequality, and technological disruption,” Mr Gyan remarked. “These multiple challenges have varied adverse effects on the economy and the citizenry. High levels of inflation, as we know, erode the purchasing power of savings, making it essential to seek out investment opportunities that offer returns that outpace inflation.”
Mr Gyan also outlined key roles for various stakeholders in promoting a healthy investment and savings culture.
Investors, he said, needed to adopt a holistic risk management approach and seek financial literacy to empower themselves to make informed decisions about investments, understand the risks involved, and navigate the complexities of the financial markets.
Banks, he argued, must offer tailored investment solutions and utilise technology to enhance accessibility.
He urged the integration of environmental, social, and governance factors into investment strategies not only to mitigate the risks but also to attract socially conscious investors and contribute to sustainable economic growth.
He said regulators and policymakers were called upon to enforce regulations, promote market stability, and implement tax incentives for long-term savings.
“We must consider more tax incentives. If, as a nation, we want to promote a culture of savings, we must induce that through tax incentives. If, for instance, I could save towards a child’s education and I could be allowed that as a deduction from my tax obligations, I have an incentive to save because I know that by saving, I will have to save something on my tax obligation. We must prescribe which long-term investments will qualify for tax incentives and pursue them,” he said.
These measures, Mr. Gyan noted, would not only enhance Ghana’s investment landscape but also contribute to its economic growth and stability.
Mr. Gyan challenged the current perception of investment opportunities as he encouraged exploring possibilities beyond traditional assets to considering investments in the informal sector and social ventures such as food joints and education.
“In our consideration of investment opportunities, do we see the Waakye seller as an investment opportunity? He asked and suggested equity partnerships.
He also questioned, “Have we considered investing in schools, so we benefit from the fees we pay?”.
He emphasised the channeling of resources towards sustainable energy, infrastructure, and impact investing.
He said that by embracing innovation, collaboration, and a focus on social and environmental benefits, Ghana could build a more resilient and prosperous future for all.
Fidelity Bank’s partnership with B&FT underscores its commitment to supporting initiatives that promote national development and economic growth.
GNA