Some financial observers have bemoaned the low level of savings among Ghanaians, describing it as disincentive to channel funds for investment.
According to them, high levels of savings provide liquidity for the private sector to access funds at a cheaper rate.
Currently Ghana gross savings is said to be below 15 percent, a situation many have described as inadequate.
Speaking to Citi Business News, the Managing Director of Stanbic Bank, Alhassan Andani that there must be a conscious effort to encourage Ghanaians to save.
“If you take Ghana the average gross savings of our total national earnings is about 15 percent, compare that to Singapore, it is about 50 percent. So does this surprise you that Singapore which is making huge infrastructure with GDP almost four times Ghana’s GDP still hold on to the savings culture?,” he queried.
Mr. Andani was of the view that Ghana can learn from the Asian economies that have grown savings as a national culture.
“If you look at most of the Asian Tigers, immediately they came into economic growth they went into the habit of savings, that enabled them to be able to build personal wealth. When you build personnel wealth you are actually able to sponsor goods and services that are produced in the economy and therefore it gives impetus to companies to continue to produce,” he said.
Touching on some advantages of savings, Mr. Andani stated that the country will have a pool of funds to channel to the real sectors of the economy.
“Because of the savings you are also able to pool the resources, when you pool the resources then individual companies and government can use the money to create jobs. They will be able to borrow on that so savings is a great thing,” he said.
By: Lawrence Segbefia/citibusinessnews.com/Ghana