The central bank has been advised to control fluctuating interest rates in the country’s financial sector by placing a cap on all transactions at a threshold of existing Treasury bill rates plus 3 percent.
“If the Bank of Ghana were to advise all the entities which it controls – giving them an order that says ‘do not put any of your funds into any fund or entity at more than T-bills plus 3 percentage points’ – we would start to see a downward trend in interest rates and the expectations of people,” said Dr. Papa Kwesi Ndoum, the Presidential Candidate of the Progressive Peoples Party in the last election.
He explained that such a move by the central government will go a long way to control the high interest rates that are affecting the cost of doing business in the country.
“One of the things hurting our industry is the interest rates, and also the expectations of everyone. But we all know that the sustainability of these high interest rates is not there and we see examples all over. It’s important that we have the regulators and government lead to get this done,” he said.
“So, if the maximum is T-bills plus 3 percent, why then would we all be jostling and create the temptation for people to go and offer big interest rates?”
Dr. Ndoum added that local banks need support from government to grow. He suggested that government, for example, should lodge its funds with Ghanaian banks to help them in this process.
“There is no country that has developed which has generated significant wealth and its people enjoyed high levels of prosperity when it has relied on foreign financial institutions to finance its activities. And so, we must rely on our own so that together we can be the ones that take care of our own development needs,” he said.
He added that local banks have a unique advantage to develop the economy because their capital is retained right here in the country, as opposed to foreign banks which may repatriate funds.
Dr. Ndoum made this submission during the 25th anniversary launch of Gold Coast Financial Holding, a GN Group subsidiary in the fund management sector. The launch was used to introduce the company’s new logo and outdoor its ultra-modern office at the Airport residential area, in Accra.
According to the Head of GN Group, about 200 companies in Ghana have benefitted directly from Gold Coast Securities’ operations – and this has resulted in the creation of employment for many Ghanaians.
Chief Executive of Gold Coast Financial Holding, Kwame Ofori Asomaning, highlighted the company’s history – focusing on the core values and influence it has had in Ghana’s financial sector, indicating the company’s growth and experience over the 25-year period.
“Gold Coast Financial Holding was born out of the idea and vision of Dr. Papa Kwesi Nduom and Mrs. Yvonne Nduom. The idea of establishing the firm was conceived from the Corporate Finance Division of Deloitte & Touche, where Dr. Nduom used to work. The vision was to render investment advisory services to Ghanaians and, in particular, provide brokerage services for the IPO of Ashanti Goldfields Limited (AGC) that was going to take place at the time,” he narrated.
He lauded management for the successes chalked-up by the company and urged staff across all 19 branches in the country to continue the good work they have been doing in the financial sector.
Gold Coast, in 2017, became a holding company with four subsidiaries – Gold Coast Fund Management, Gold Coast Brokerage Limited, Gold Coast Trustees and Gold Coast Advisors.
The company has over the years won a number of awards, including Best Investment Advisor for 2011, Best Fund Manager for 2013 and 2014 and Second-best Brokerage Firm for 2017.
The launch of the 25th anniversary celebrations begins a long line of activities scheduled throughout the year to mark the company’s Silver Jubilee.