Martin Ofori, Chief Executive Officer (CEO) of Crystal Capital and Investments Limited (CCI), a leading investment and financial advisory firm, has called for a more comprehensive financial sector strategy and an effective implementation model on creating long-term investment vehicles to propel the country’s economic growth.
He made the call at a media soiree at the company’s headquarter located at Spintex Road, a suburb of Accra.
According to Mr Ofori, the financial system as it evolved in Ghana after independence was based on some perceived notion of credit scarcity to indigenous enterprises as a result of the colonial banking arrangements prevailing in the early 1950s.
“This notion as revealed later was the key basic reason for the establishment of the Ghana Commercial Bank in 1953, and subsequently shaped the development of the indigenous banking system in Ghana until the financial reforms started in 1988”, Mr Ofori argued.
He noted that beyond the institution building of Ghana’s supply-leading finance path of economic development, a deliberate policy regime was put in place, ostensibly to help channel create to designated priority areas to promote accelerated economic development.
Mr Ofori was quick to added the post-independence financial policies up to 1988 when Financial Sector Structural Adjustment Program (FINSAP) was introduced, focused on the desire to increase the level of investment, improve the allocation of investment, keep financial costs down, and maintenance of low and stable interest rates.
“Decades after the major reforms, followed by several other regulatory, policy and institutional re-arrangements, we can only confidently say that the banking system remains good at what it does best, an effect pivot of the financial system, creating a culture of trust and confidence that is crucial for an efficient payments system and savings mobilisation”
“However, growth cannot be sustainably achieved by a culture of savings and loans only unless funds are efficiently channeled into investment”, Mr Ofori emphasized.
He stated that the objectives set forth at independence were achieved only on increment bases.
“We of Crystal Capital believe that the status quo cannot drive the required transformation. The time has come to develop specific initiatives that will promote sustainable investment into viable cutting edge projects that will propel growth”.
The CEO is optimist that the capital market and the general investment banking space, which he considers as the next “big thing” can only break out and bring about a significant transformation if specific initiatives drawn from international best practice are allowed to create appropriate investment domestically and potentially attract “matching” off-shore funds to propel indigenous growth”.
“All funds coming from investors from abroad are acquired through the same principle of collateralisation for funding”, Mr Ofori stressed.
With the growing assets under management, pension and life insurance funds-along sovereign and other institutional investment funds-we the experts in the investment banking space have an important role to play in helping to chart the path for financing growth initiatives for the next level, according to him.
However, Mr Ofori indicated that; “policy regime must understand the required cooperation in this regard and help to strategically position the financial sector to create the desired financial interrelations”.
“Channeling these potentially stable assets into long-term investments would required focused policies that can create the right investment vehicles along with the institutional framework as well as a comprehensive strategy implementation model to boost growth in the economy”, he reiterated.
He added that they however understood that a buoyant capital market was critical in helping to develop structured products, build the right understanding and investment culture among their people to help mobilise significant investment funds as well as develop the right leverages to the economy.
“We have the requisite skill and space to establish funds as well as leverage existing funds to boost the economy. The financial authorities need to recognize this by providing comprehensive support for the essential components of capital markets through increased interaction and coordination”.
Touching on the company’s recently launched two new mutual funds- Crystal Entrepreneur Fund (EFund) and Crystal Wealth Fund (W-Fund) which are offering Ghanaians more investment opportunities to earn higher returns, Mr Ofori urged all Ghanaians to sign onto the mutual funds.
He explained that, “the EFund and the Wealth Fund have been designed to serve a current need in the market for innovative and flexible investment products that will give every Ghanaian real value.
With markets in a near state of tumult and the fear that volatility might destroy returns in many parts of the market, running one Fund with a mandate to find value in one particular market or sliver of a market is not quite strategic. We have the dexterity to diversify investment funds to deliver optimum yield.
He added, “At CCI, we identify value or the potential for value where others do not. We do not merely sell products and financial services – we form the right partnership with each and every client. This is important to us – to create value for our clients through ingenious value-add services like complimentary advisory sessions for asset owners and users.”
While the EFund has been primarily designed for entrepreneurs, young people with entrepreneurial ambitions, as well as organizations that support entrepreneurial initiatives. The Fund protects the capital of investors by investing in a balanced portfolio that provides very good yield. Through the EFund, Crystal Capital hopes to help entrepreneurs to achieve their business dreams without the need for loans and also quicker than they would with just savings.
By Masahudu Ankiilu Kunateh, African Eye Report
