Reduce Interest Rates – Prof. Oti Boateng

Former Government Statistician and Omanhene of New Juaben Traditional Area, Professor Emeritus Daasebre Nana Oti Boateng has called for an immediate reduction in interest rates in the country.

According to him, business men and women cannot borrow to gain meaningful returns because of high interest rates.

The former government statistician made the call when he chaired the official opening of the Koforidua branch of the First Capital Plus, a leading savings and loans company in Ghana.

He urged all stakeholders, including the Minister for Finance, government and financial institutions to meet and do everything possible to reduce the interest rates so that “business men and women in the country can really borrow money, work with the money and get decent returns.”

Prof. Oti Boateng said the reduction in interest rates would be a win-win situation for businesses, financial institutions and government.

The Chief Executive Officer (CEO) of First Capital Plus, John Kofi Mensah called on people in Koforidua and its environs to transact business with the company since they would obtain returns.

He said First Capital Plus Savings and Loans started operations in 2009 with a stated capital of GH¢7 million, making it one of the best capitalized savings and loans companies in the country.

The financial institution, which currently has 13 branches in five regions, is working to add 10 more branches in two other regions by the close of the year in view of the anticipated growth in branchless banking.

Mr. Mensah indicated that the company registered impressive performance over the past two years, as performance indicators of the financial institution showed that deposits grew from GH¢96,932,958 in 2011 to GH¢211,110,964.64 in 2012, representing an increase of 117.79 percent.

Loans and advances also grew from GH¢50,132,072 in 2011 to GH¢107,653,665.16 in 2012, representing an increase of 114.74 percent.

The company, he indicated, increased its total assets from GH¢125,146,958.80 in 2011 to GH¢289,797,625.67 in the year under review, representing a 129.17 percent turnout.

According to him, interest income which drives profitability in the financial services sector grew from GH¢31,153,327.00 in 2011 to GH¢58,556,680.84 in 2011, giving an increase of 87.96 percent.

He urged corporate entities to adopt a God-centered approach in their business model.

“The most important value and foundation of our institution is God. Our strategic direction is heavily influenced by divine wisdom and direction,” he said.

“Apart from divine blessings that accrue, there are other tangible benefits like teamwork and cohesion, fostering inter-personal relationships, shaping individual values, motivation through words of inspiration that all serve to shape staff attitude and energize staff towards personal enhancement and increased productivity.”