Ideal Finance Limited, a subsidiary of the Ideal Finance Holdings, has formally opened its first branch outside the Accra-Tema enclave, in Kumasi, to serve the Ashanti, Brong Ahafo and entire northern sector of the country.
The inauguration of the plush Kumasi branch, located at Asokwa, now brings the company’s total number of branches in the country to four.
The Group Chief Executive Officer (CEO) of Ideal Finance Holdings, Dr. Nii Kotei Dzani, speaking at the ceremony observed that starting the Kumasi office comes at a time the country is experiencing some economic challenges which demand the collective effort of all Ghanaians to solve.
He said the local currency’s instability has generated a lot of discussions — but said calls to buy and hoard dollars to avoid being affected by the rapid depreciation and others are not helpful in fixing the situation.
He stated that the local currency’s problems are directly linked to the country’s economic fundamentals, and any economy that has its imports always exceeding its exports is bound to face such challenges.
Dr. Dzani said, unfortunately, the country is not able to process the few products it sends outside the country, be it cocoa or crude oil. It was against this backdrop that he expressed worry over the recent closure of the Cocoa Processing Company.
He joined calls for the country to prioritise developing its agricultural sector, advising that government should focus on this sector where the country has a competitive advantage.
He asked why Ghana and Ivory Coast, both leading producers of cocoa in the world, cannot determine the commodity’s price in the world market.
The Group CEO also indicated that the level of government borrowing domestically is a cause for concern given that it crowds out the private sector, since small businesses are not able to compete with government for funds.
He appealed for government to put in place a deliberate policy to help the growth of indigenous businesses.
The Head of Banking Supervision Department at the Bank of Ghana (BoG), Mr. Raymond Amanfu, commended Ideal Finance Limited for pursuing a growth strategy that is largely driven by market development.
He noted that this will enhance its visibility and consequently also reposition it competitively in the industry.
He said the BoG welcomes the expansion of financial institutions across all regions of the country, as this promotes competition and deepens the level of financial intermediation.
Mr. Amanfu however advised that non-bank financial institutions (NBFIs) and banks begin to pay attention to the financial needs of their clientele base.
He said: “The market is constrained by the sheer size of our economy, and the implication is that market players tend to deal with the same customer base”.
He therefore entreated financial institutions to innovate and become the preferred choice in the marketplace.
It was revealed that presently there are about fifty-eight licenced finance houses and savings and loans companies operating across the country, with similar financial models and products that are targetted at the same segments of the market.
Mr. Amanfu therefore entreated management of Ideal Finance to develop or acquire some unique resources and competences in order to outpace rival institutions in the industry.
The Association of Rural Banks (ARB) among others also called on staff of the company to justify their recruitment by working to ensure its growth.
Source: B&FT Online