A new survey conducted by the Oxford Business Group (OBG) has shown that almost 44 percent of CEOs are positive about a good outcome of the banking sector reforms undertaken by the Bank of Ghana in 2018.
The survey also showed that 43 percent of the CEOs also expressed negative sentiments about the banking sector clean-up.
Speaking to journalists after releasing the research, the Editorial Manager of the Oxford Business Group. Rik Moors said the CEOs that expressed negative sentiments were concerned about liquidity challenges.
According to Moors, “reactions to the banking reforms agenda were mixed with almost half (44%) of the survey participants describing local sentiments surrounding the reform agenda as positive or very positive, while 43% described it as negative or very negative”.
He explained that the banking sector reforms have formed a key part of the government’s efforts to restore macroeconomic stability in recent years.
He added that the uncertainty observed in the survey results can be explained by the fact that while most people agree the reform agenda is a much-needed measure to reap longer-term benefits, many remain preoccupied with its short-term implications, particularly on liquidity and credit availability.
About the survey
The survey was launched at the fourth quarterly GIPC CEOs’ breakfast meeting , titled “Ghana On the Go!” Organised by the Ghana Investment Promotion Centre, in collaboration with OBG and Impact Investing Ghana, the event took place at the Marriott Hotel, Airport City, Accra, in the presence of high-profile representatives from the private and public sectors.
From those interviewed, 71% of respondents described their expectations of local business conditions as positive or very positive for the coming 12 months, while 68% viewed the level of transparency for conducting business in the country relative to the West African region as high or very high.
Executives were also upbeat about the Africa Continental Free Trade Area (AfCFTA), which will be headquartered in Ghana’s capital Accra, and the benefits it could bring to the region, with 73% expecting it to have a positive impact on intra-regional trade levels.
OBG’s survey also highlighted business leaders’ concerns over the destabilising impact on the economy of commodity price fluctuations. A plurality (43%) of those interviewed chose volatility in commodity prices as the top external event they felt could impact Ghana’s economy.
