Ghana to host conference on "Making finance work for Africa"

Accra, June 11, GNA - Ghana will host a two-day meeting for more than 250 senior level financial sector champions from over 30 countries at the Partnership Forum for Making Finance Work for Africa in Accra from June 17-18 2008.

Mr. Kwadwo Baah-Wiredu, Minister of Finance and Economic Planning, announcing this in a statement issued by the Ministry on Wednesday said: "The financial sector development is a priority for African policy makers. A growing economy needs strong private investment driven by strong, innovative financial institutions. "We will be able to achieve results if Government, the private sector and our development partners work together in partnership across the continent."

Mr. Baah-Wiredu said at the partnership forum, leaders of Africa and international financial institutions, government officials, central bankers, prominent researchers and international experts would discuss the priorities for developing the African financial sector. Mr. Ralf Schroeder, Director in the German Federal Ministry of Economic Cooperation and Development, which champions the Partnership for Making Finance Work for Africa, emphasized that "financial sector development is a strategic driver of growth and employment in Africa". He said access to and cost of finance are bigger problems for firms in Africa than in any other region of the world.

Mr. Zeinab al Bakri, Vice President at the African Development Bank noted that only 20 per cent of adults in sub-Saharan Africa held a bank account at a formal or semi-formal institution.

"Poor people need access to financial services to invest in economic activities, in health in education and to reduce their vulnerability to household emergencies," he said. He said currently, total credit for enterprises and households is about 14 per cent of the collective Gross Domestic Product (GDP) in Africa, insufficient to ignite accelerated growth and poverty. Mr. al Bakri stressed that an increase to 25 per cent of GDP - a level achieved by many other low-income countries - would translate to more tan 70 billion dollars of additional investment resources for households and firms.

Mr Vincenzo La Via, Managing Director at the World Bank, said: "Improving the operating environment for African banks could save African borrowers more than three billion US dollars in interest every year. Lack of credit information, weak property rights and small markets increase the average interest rate spread in Africa to eight per cent, much higher than the world average of 4.8 per cent." 11 June 08