“Following on from the reductions in treasury bill rates, the banking sector is readjusting to actually making money from the real sector,” says Alhassan Andani, President of GAB and MD Stanbic Bank Ghana.
The collapse of two Ghanaian banks has prompted the central bank, the Bank of Ghana, to raise the liquidity thresholds of commercial banks to avoid contagion. Bonds, issued by the state-owned energy utilities to pay off debts, have also helped stabilise the sector but some analysts worry about the negative impact of the new measures on bank lending.
Ghana’s Minister of Finance, Hon. Ken Ofori-Atta, has overseen a revival of fortunes for the country’s economy. He aims to put the private sector at the forefront of economic growth and development.
Savvy investors are pulling their deposits out of banks, where interest rates are in the single digits, and placing them in the securities market for higher returns. The securities market has been boosted by rising issuances of treasury bills and bonds by the government. The trend has led to a dip in banks’ deposits and less credit being made available to small businesses, writes Michael Nkwor.
Gambia’s new leader, Adama Barrow and his administration inherited a bankrupt economy when they took office a year ago. Since then, matters have decidedly changed for the better, with the country expected to register a growth rate of 5% by 2020. Sanna Camara reports from Banjul.
Following the news that Barclays Africa is to revert to its original roots and name Absa after a 5-year relationship with Barclays PLC, this throwback …
African Reinsurance Corporation (Africa Re) has become the first multi-lateral financial institution to invest in Africa Finance Corporation as it becomes a member of AFC …
One year ago, Kenya’s central bank implemented an interest rate cap, but following unintended consequences and strong lobbying by the banks, it seems that the decision will be reversed in the near future.
What is the relationship between a soaring skyline and foreign direct investment? Is it true that the more skyscrapers you have, the more FDI you are likely to attract – or is it just another urban myth?
Ethiopia continues to be one of the fastest growing economies in the world with an expanding consumer base. Despite internal political tensions, the country is attracting an increasing number of foreign investors as well as international banks eager to serve the expansion.