BoG Governor courts private capital

Dr. Asiama addressed international investors at the AfDB meeting. He stated, “The Ghana opportunity is real and unfolding.” He urged for immediate engagement and emphasized consistent policy.

The roundtable was themed ‘De-risking Growth: Building confidence in African sovereign finance.’ This comes during a time of cautious optimism for Ghana. After a challenging 2024, key indicators show significant improvement.

Real GDP grew by 5.7 percent last year, surpassing expectations. It is projected to expand by four percent in 2025 despite global challenges. The cedi has appreciated by 21.5 percent this year, recovering from a previous depreciation of 19.2 percent.

Inflation decreased from 23.8 percent in December to 21.2 percent in April. This decline is due to tighter monetary policy and a stabilizing exchange rate. Foreign reserves rose to US$10.67 billion, covering 4.7 months of imports.

Ghana also recorded a current account surplus of US$2.12 billion in the first quarter. Dr. Asiama noted that these gains are not accidental but result from deliberate actions.

He highlighted a coordinated macroeconomic strategy focused on stability and growth. The Bank of Ghana has maintained tight monetary policies and worked with the Ministry of Finance on fiscal consolidation.

The government has implemented strict expenditure controls and revenue reforms as well. These efforts are supported by an IMF agreement under the Extended Credit Facility and an S&P credit rating upgrade.

However, Dr. Asiama cautioned that stabilization is just the beginning. Sustaining investor confidence requires further reforms in governance and financial intermediation.

“Trust is the real currency in global finance,” he said, emphasizing consistency and transparency as essential elements for leadership.

The Bank's decision to keep its policy rate steady at 28 percent reflects this strategy. Dr. Asiama mentioned that the Monetary Policy Committee unanimously agreed on this decision to consolidate disinflation gains.

Structural reforms are underway in liquidity management as well. The central bank is moving towards more active open market operations for better liquidity control.

Ghana’s foreign exchange market will also see regulatory improvements soon. Stricter enforcement of FX rules has helped support the cedi’s recovery according to the Governor.

“The cedi’s performance reflects real reforms and resilience,” he stated confidently.

Financial sector indicators show mixed results; capital adequacy ratios improved to 15.8 percent as of April while non-performing loans remain high at 23.6 percent.

Despite this, Dr. Asiama believes that effective loss provisioning will restore sector resilience over time.

Beyond macro indicators, Ghana aims to attract investors interested in green infrastructure, fintech, logistics, and light manufacturing sectors aligned with its climate goals under AfCFTA framework.

“As confidence returns, we see an opportunity to position Ghana as a preferred investment destination,” he said optimistically.

However, investor engagement will not rely solely on incentives according to the Governor's remarks.

Ghana seeks patient investors who align with national development goals rather than speculative capital.

“We believe in responsible capital that supports inclusive growth through governance,” he concluded firmly.