The Managing Director of the Ghana Stock Exchange, Ms. Abena Amoah has urged government institutions to support and nurture an entrepreneurial mindset to reduce the over-reliance on the traditional sector.
During the 2023 Money Summit organized by the Business & Financial Times (B&FT), she highlighted some key roles of a robust financial system in driving sustainable economic growth in Africa.
Speaking to the theme, “Africa’s Robust Financial Sector: The Catalyst for Sustainable Economic Growth,” Ms. Amoah outlined significant areas where a robust financial system can drive sustainable economic growth in Africa. They included mobilizing capital, enhancing financial inclusion, promoting trade and investment, fostering innovation, and promoting sustainable finance.
Ms. Amoah stressed the importance of access to capital for entrepreneurs, businesses, and infrastructure development.
“Access to capital is vital for entrepreneurs, businesses, and infrastructure development. A robust financial system provides a platform for efficient capital mobilization, allocation, and investment,” she said.
“It facilitates the flow of funds, allowing businesses to expand, innovate, and create job opportunities. By nurturing entrepreneurship and supporting the growth of small and medium-sized enterprises (SMEs), we can foster economic diversification and reduce reliance on traditional sectors. A healthy ecosystem of banks, capital markets, insurance companies, pension funds and other financial institutions will create an environment conducive to growth, innovation, and shared prosperity,” he added.
Ms. Amoah further highlighted the potential for intra-continental trade and foreign investment in Africa, and the role of a robust financial system in facilitating cross-border transactions, mitigating risks, and providing necessary financial instruments.
She noted that strengthening regional integration and promoting trade finance mechanisms will unlock opportunities for businesses, enhance competitiveness, and spur economic growth across the continent.
“Cross-border trading and investment are crucial for unlocking Africa’s economic potential. Initiatives such as the African Exchanges Linkage Project (AELP) and collaborations between organizations like the African Securities Exchanges Association (ASEA) and the Pan-African Payments and Settlement System (PAPSS) are breaking down barriers, enabling seamless cross-border transactions and enhancing the efficiency of our financial markets. By facilitating greater cross-border integration, we can attract more investments, increase liquidity, and deepen our financial markets,” she noted.
The 2023 Money Summit served as a platform for stakeholders to confer a robust financial system that presents as the bedrock upon which sustainable economic growth in Africa can flourish. The summit hopes to serve as a catalyst to enable capital mobilization, drives financial inclusion, promote trade and investment, foster innovation, and support sustainable development.