Mr Clement Osei-Amoako, President of the Ghana National Chamber of Commerce and Industry (GNCCI), has disclosed that the Chamber is looking at ways to reposition its members in the wake of the Domestic Debt Exchange Programme (DDEP).
According to the President of the Ghana National Chamber of Commerce and Industry, every government action has its consequences on the private sector and the economy at large, hence the assembly of views from academia and practitioners on how to surmount the issues going forward is necessary.
Mr Osei-Amoako made this known at the maiden edition of the Chamber National Dialogue on the theme: “Impact of the DDEP on the Private Sector of Ghana,” in Accra. The initiative provided an advocacy platform for businessmen and women, industry, experts, academics, policymakers, and the media to address topical economic issues aimed at promoting a conducive business environment.
Mr Osei-Amoako explained that the dialogue is also aimed at engaging in a constructive and productive conversation about the impact of the DDEP on the private sector of Ghana and to explore the necessary business strategies and policy adjustments to mitigate losses.
The President of GNCCI noted that the state of the Ghanaian economy is a major concern for stakeholders. He demanded that steps be taken to achieve lasting solutions to these structural and cyclical issues. The issues such as high inflation, rising interest rates, cedi depreciation, and tightening policy rate, among others.
Mr Osei-Amoako averred that the Chamber’s analysis of the 2021 audited financial statement of 22 commercial banks revealed that over 50 per cent of the total assets of six commercial banks were exposed to government bonds and treasury bills. “Over 70 percent of six commercial banks’ total deposits were exposed to investment securities in government bonds and treasury bills,” he added.
Banks’ Deposits Exposed to DDEP
Mr Osei-Amoako, moreover, noted that overall, a minimum of two-thirds of total deposits are exposed to government bonds and treasury bills across half of the commercial banks. “Therefore, striking a delicate balance to mitigate the inherent losses of the DDEP with the corresponding adjustments in fiscal and monetary policies will be decisive in the way forward,” he said
The President of GNCCI is of the view that a successful implementation of the Programme must consider the specific and overall impact on the Ghanaian economy.
Mr Osei-Amoako, meanwhile, assured its members of the Chamber’s strong reputation and goodwill with state and non-state actors, both local and international, to achieve targeted results in the interest of the business community. He itrated that the GNCCI remains committed to promoting and protecting commercial and industrial interests in the country and working with the government and other stakeholders to improve the business environment.
Mr Peter Quartey, Director of the Institute for Statistical Social and Economic Research (ISSER) at University of Ghana, on his part, also mentioned that there is the need to set up a fund, where businesses that needed some advisory and other forms of support could access it. “So far, there is one for banks, but there is the need for an extension to the individuals, companies, and other businesses that may suffer a loss as a result of the DDEP”.
Mr Quartey noted that with the external bondholders, there was a consultant from France who had engaged them already while the DDEP was ongoing. He disclosed that the only challenge was that there were many creditors. “So, the stage of bringing them together would be a challenge,” he said.
