Ghana urged to diversify economy

OilGhana must diversify its economy away from oil to be able to generate revenue to fuel growth, Mr Steve Brice, the Standard Bank Chief Investment strategist has said.

Speaking to a cross-section of journalists at a discussion with the Group Wealth Management Advisory and Strategy Team, Mr Brice said it was important Ghana diversify her sources of growth and external revenue to avoid being hit by unforeseen circumstances.

Mr Brice, who shared his views on major global investment opportunities and challenges that emerged in 2016, and the investment lessons to be drawn from these experiences for 2017, said although oil prices were likely to rebound in 2017 to about $ 65 per barrel, Ghana and other oil producing countries could not depend on this to meet their growth needs.

Mr Brice commended Ghana’s government for the initiative to issue both dollar and cedi denominated bonds to deal with maturing debts, explaining that the dollar bonds would provide liquidity to shore up the cedi.

He said Ghana’s programme with the International Monetary Fund had help to ensure fiscal stability.

Touching on investment, Mr Brice said investors must diversify their investment portfolios to avoid the risks in the equity and bonds markets.

He said because of the uncertainties in the global economy and the likely exposure to risk, it was important not to put resources in one asset class.

“There is the need for investors to adopt a risk-based approach to investing,” he said.

Mr Brice advised investors looking to the bond market to ensure that they keep to short maturity period for the instruments.

Source: GNA

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