Alhaji Yakubu-Tali
Managing Director of the Agricultural Development Bank (ADB) PLC, Alhaji Alhassan Yakubu-Tali, is confident that the current economic recovery would stimulate and sustain growth in the financial sector.
The optimism comes after the International Monetary Fund (IMF) approved the second review under its US$3 billion Extended Credit Facility (ECF) arrangement as well as the implementation of key structural reforms by the Bank of Ghana, the Ministry of Finance, and other stakeholders.
Alhaji Yakubu-Tali stated that these developments are projected to lead to a drop in inflation, causing a rippling effect throughout the financial sector and the broader economy.
He projected that this would result in lower loan interest rates, higher Treasury bill (T-Bill) rates, cedi stabilization against the dollar, and increased gross international reserves of the country.
The ADB chief praised the BoG’s efforts to continue fiscal consolidation, tighten monetary policy, achieve relative exchange rate stability, and reduce inflation.
“This renewed confidence is expected to drive increased borrowing and lending activities, further fueling economic growth and stability,” he added.
Alhaji Yakubu-Tali also referred to the BoG’s address titled “Maintaining structural reform momentum…”, which indicates positive signs of recovery in the first quarter of 2024, with overall Real GDP growth for Q1 2024 at 4.7 percent, the highest since Q1 2022, compared to 3.1 percent growth recorded in the same period of 2023.
“It also shows that industry grew the most at 6.8 percent, followed by Agriculture at 4.1 percent and Services at 3.3 percent,” he said.
He noted that these revealed signs of a resilient economy and pointed out that implementing key structural reforms is crucial in bolstering the overall economic recovery effort of the country.
“The ongoing structural reforms will not only stabilize the macroeconomic environment but also provide a solid foundation for sustainable growth and development in the financial sector,” Alhaji Yakubu-Tali said.
Alhaji Yakubu-Tali reiterated ADB’s commitment to supporting the economic recovery process by providing accessible and affordable financial services to its customers and the general public. “ADB remains dedicated to playing a pivotal role in fostering economic growth and financial inclusion across Ghana,” he stated.
The Agricultural Development Bank PLC is at the final phase of its additional capital injection process.
The Bank has also opened its 89th network location in Ejisu, next to the Ejisu Divisional Police Office in the Ashanti Region.
By A.R Gomda