KPMG report
A recent report published by KPMG reveals a new dynamic twist in the savings culture of most Ghanaians to safeguard the value of their incomes.
The report indicates that investors prefer to safe in foreign currencies than in the local Ghana cedis.
The report attributes the double-digit inflation and depreciation of the cedi to escalating costs of living particularly in the provision of basic needs like food, housing and transportation.
It also acknowledged the impact the debt restructuring initiative, crucial for securing an IMF bailout, and how it led to reduced confidence among local investors following losses incurred by bondholders.
These factors the report indicates has reduced the value of the cedi and purchasing power of the average Ghanaian, regardless of this development, the saving culture amongst Ghanaians remain robust, however, to secure value of their investment monies saved are in foreign currencies.
“However, only one in five is able to set aside more than twenty percent of their income, signaling that rising costs have eroded disposable incomes. In response to this challenge, some Ghanaians have turned to saving in foreign currencies to safeguard the value of their money” it stated.
The change in savings culture is not exclusive to Ghanaians, as same report reveals a similar trend among many other West African countries, especially Nigeria, where investors prefer to safe in foreign currencies than the Niara.
In this year’s research, KPMG West Africa, delved into customer spending habits to understand their financial priorities.
The findings unveiled that food (62%) and transportation (40%) stood out as the primary expenses for respondents.
EAN/OGB
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