Bankers cry for start-ups over cedi instability

Entrepreneurs in the country are faced with a daunting task in seeking any meaningful planning due to the flaky exchange rate atmosphere, Clifford Duke Mettle, President of the Chartered Institute of Bankers (CIB), Ghana, has noted.

“It is perennial and makes planning difficult for entrepreneurs. Entrepreneurs are struggling to grow their businesses, because when you are unable to plan concretely because of the prevailing circumstances it becomes a very daunting task to realise growth. So why don’t we come together and find a lasting solution on the way we can assist government and the central bank to ensure that we put in place structural solutions to help in sustenance of the rate?”

He lamented that the unsteady exchange rate environment being experienced in the country is pushing many entrepreneurs to the edge, as prognosis of long-term trends is often short-lived due to unfavourable exchange rates.

The local currency has from the beginning of this year depreciated by 15.5 percent as at October 2015. This has made prognosis of future trends murky as prices keep rising due to unfavourable exchange rates, thus making it grim for businesses to take decisions that enable them to grow.

He made these comments in Accra on the sidelines of the Bankers’ Week celebrations, organised by the Institute as part of efforts to imbue healthy living as well as create awareness for the CIB.

The event began with a health walk through some major streets of Accra, after which there were other activities including a five-a-side football competition, body massage, and all-male cooking competitions.

“We believe that the Institute of Bankers’ members perform sedentary jobs -- most of the time they sit down during working hours. So why don’t we organise an event that will propel them to come out and stretch out their limbs, because a sound mind is found in a sound body,” Mr. Mettle added.

He disclosed that the Institute has put in place measures to bring key stakeholders including exporters, the Association of Ghana Industries and others in the currency exchange business to fine-tune lasting solutions on how the private sector can assist government and the Bank of Ghana to come out with fundamental solutions on the sustenance of exchange rates to make the business atmosphere more predictable to entrepreneurs.

Going forward, Mr. Mettle noted that the CIB aspires to be an institution of international repute for churning out astute and credible bankers in the country and the world over.