Executive Chairman of the World Trade Centre Accra and Investment Banker, Togbe Afede XIV, has accused the Bank of Ghana for the continuous rise in its policy rate, saying, it is crowding out the private sector from access to funds.
He has therefore charged the Central Bank to develop new strategies in dealing with interest rates to avoid the crowding out effect on the private sector.
According to him, the consistent hike in the policy rate is greatly taking a toll on private sector investments, hence the need for swift measures to save the economy from further troubles.
Speaking to Joy Business at the launch of the 53rd General Assembly of the World Trade Centres Association, the renowned chief and investment banker said the move to control inflation with hikes in the policy rate will stifle the growth of the private sector.
“The crowding out is an issue of interest rate. The only way to go against it is to have a lower interest and the only way to lower interest rate is to stop looking backwards.”
“When you are targeting 8% inflation over the next year and you look back at year-on-year inflation of 25% to set interest rate going forward, we cannot move forward”, he said
He urged businesses to take advantage of the current economic crisis to expand their operations.
Togbe Afede XIV stressed on the need for local firms to leverage partnerships with other foreign businesses to support economic growth and improve various productive sectors.
“With the year’s general assembly, local business should tap into various opportunities and engage more regardless the economic crisis. Business leaders across the world will be around, so this is the time to take advantage of such initiatives”, he stated
This year’s 53rd General Assembly of the World Trade Centres Association is under the theme “Towards African Economic Integration and Enhanced Global Presence”.
The event will run from the April 23-25,2023
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