Fidelity Bank: Atta Gyan calls for a rethink on investment strategies at the Money Summit

Atta Yeboah Gyan, Deputy Managing Director at Fidelity Bank, delivered a keynote address at the Business and Financial Times (B&ft) Money Summit, urging a paradigm shift in investment strategies.

The event, themed "Investing for the Future: Re-thinking Investment and Savings

to Drive Sustainable Economic Growth" and sponsored by Fidelity Bank, Ghana's

largest privately-owned bank, brought together key stakeholders to discuss the

future of Ghana's financial landscape.

In his address, Mr. Gyan emphasized the critical role of savings and investment

in fostering entrepreneurship, economic growth, and financial resilience. He

acknowledged the challenges of navigating today's economic landscape, marked

by high inflation, interest rates, and social inequality. He argued that traditional approaches to saving and investing are no longer sufficient and called for a paradigm shift towards sustainable investment.

"The challenges we face today as a nation are many, including high inflation,

rising interest rates, slow economic growth, threats of sovereign default, public debt restructuring, climate change, social inequality, and technological

disruption," Mr. Gyan remarked.

"These multiple challenges have varied adverse effects on the economy and the citizenry. High levels of inflation, as we know, erode the purchasing power of savings, making it essential to seek out investment opportunities that offer returns that outpace inflation."

Mr. Gyan further outlined key roles for various stakeholders in promoting a

healthy investment and savings culture. Investors, he said, need to adopt a

holistic risk management approach and seek financial literacy to empower

themselves to make informed decisions about investments, understand the risks

involved, and navigate the complexities of the financial markets.

Banks, he argued, must offer tailored investment solutions, and utilize

technology to enhance accessibility. He emphasized the need to integrate

environmental, social, and governance factors into investment strategies not

only to mitigate the risks but also to attract socially conscious investors and

contribute to sustainable economic growth.

Regulators and policymakers were called upon to enforce regulations, promote

market stability, and implement tax incentives for long-term savings.

"We must consider more tax incentives," Mr. Gyan declared. If, as a nation, we

want to promote a culture of savings, we must induce that through tax incentives. If, for instance, I could save towards a child's education and I could be allowed that as a deduction from my tax obligations, I have an incentive to save because I know that by saving, I will have to save something on my tax obligation. We must prescribe which long-term investments will qualify for tax incentives and pursue them."

These measures, Mr. Gyan believes, will not only enhance Ghana's investment

landscape but also contribute to its economic growth and stability.

Mr. Gyan challenged the current narrow perception of investment opportunities.

He encouraged exploring possibilities beyond traditional assets and considering

investments in the informal sector and social ventures like food joints and

education.

"In our consideration of investment opportunities, do we see the Waakye seller

as an investment opportunity?" he challenged, suggesting equity partnerships.

He further questioned, "Have we considered investing in schools, so we benefit

from the fees we pay?"

Mr. Gyan concluded with a call to action, urging participants to chart a course

towards a more sustainable and equitable future. He emphasized the need to

channel resources towards sustainable energy, infrastructure, and impact

investing. By embracing innovation, collaboration, and a focus on social and

environmental benefits, Gyan believes Ghana can build a more resilient and

prosperous future for all.

The B&ft Money Summit 2024 provided a platform for stakeholders to collaborate, innovate, and mobilize resources towards sustainable development. Fidelity Bank's partnership with B&ft underscores its commitment to supporting

initiatives that promote national development and economic growth.