Ghana's Finance Ministry has called on the banking industry to play a stronger role in financing businesses that can expand production, boost exports, and create jobs. The ministry's Director of Financial Sector Division, Louis Kwame Amo, made the statement on behalf of Finance Minister Dr. Cassiel Ato Forson at the commissioning of Absa Bank Ghana's new head office on September 25. This call is part of the government's New Economy programme, which aims to build on recent macroeconomic stabilization.
The government's New Economy programme seeks to transform the economy into a more productive, competitive, and export-oriented one, with greater private-sector participation. According to Amo, maintaining macroeconomic stability remains a key priority, but stability is only a platform for transformation. The programme aims to work with the private sector and other stakeholders to strengthen productive areas of the economy. This initiative is expected to create more opportunities for private-sector growth.
Amo encouraged financial institutions to prioritize lending to enterprises involved in manufacturing, agriculture, and agro-processing, exports, technology, and other activities capable of generating employment. He explained that the government's decision to reduce its presence in the domestic financing market should create additional space for banks to extend credit to private businesses. This move is expected to boost economic transformation and create jobs.
The banking industry is being urged to channel more credit to productive sectors of the economy as the government takes steps to reduce its dependence on domestic borrowing. Amo emphasized that stronger collaboration between the banking sector and productive businesses would be critical to sustaining economic transformation. He highlighted the need for more credit to go to businesses that produce, export, manufacture, and employ young people.
The commissioning of Absa Bank Ghana's new head office marked the occasion where Amo made the statement. Absa Bank Ghana is one of the financial institutions expected to play a key role in financing businesses that can drive economic transformation. The bank's new head office is expected to serve as a hub for its operations in Ghana.
The government's initiative to reduce its presence in the domestic financing market is expected to create additional space for banks to extend credit to private businesses. This move is part of the government's efforts to transform the economy and create more opportunities for private-sector growth. Amo's statement highlights the critical role that the banking sector can play in driving economic transformation.
The call for increased lending to productive sectors is part of the government's efforts to build on recent macroeconomic stabilization. The government's New Economy programme aims to create a more productive, competitive, and export-oriented economy. The programme's success will depend on the banking sector's ability to play a stronger role in financing businesses that can drive economic transformation and job creation.
Key points
- The Ghanaian government is urging banks to increase lending to productive sectors to boost economic transformation and job creation.
