The Governor of the Bank of Ghana, Dr. Ernest Addison has said, price stability is a key facilitator to growth and development, thus, there is the need to focus on that aspect of the Ghanaian economy.
Dr. Addison explained that, in the new legal dispensation, the primary objective of the bank is to maintain price stability independent of instructions from government or any other authority. This has refocused the central bank on the major task of inflation control and indirectly away from developmental activities which characterised the bank’s operations in the past.
He therefore noted that, “The new statutory mandate of the bank is firmly rooted in a resurgence of public interest in economic policy, a heightened aversion for inflation and awareness of how much economic stability contributes to raising the standards of living of its people.”
According to him, the Act 612 mandated the formation of the Monetary Policy Committee responsible for formulating monetary policy, which has brought transparency to the central bank’s operations and its communications with the public.”
Dr. Addison also hinted on the importance of price stability in economic development, that, price stability offers the strong foundation to facilitate growth and development. Adding that, it is in this case achieving and maintaining a low and stable inflation regime, reduces uncertainty and helps economic agents to extract information from relative prices, thus, leading to a more efficient resource allocation and higher growth.
He further said, by controlling inflation through effective monetary policy formulation, the Bank of Ghana would be making the best contribution that it can, to contribute to the sustainability of long-term growth and economic development at large.
The Governor however said, “All over the world, business and financial journalists are increasingly becoming an important fixture of the monetary policy communications process, acting as channels for major policy announcements to financial markets and to the public.”
He was addressing members of the Journalists for Business Advocacy (JBA) at a two-day advocacy training workshop in financial reporting, organized by JBA in Accra on 7 November, 2017 at the Kofi Anan ICT Centre, and dabbed ‘Monetary Policy Tools for Economic Development’.
The Pan African Bank, Ecobank Ghana has reiterated its commitment towards strengthening the Small- and Medium-Scale Enterprise (SME) sector in the Ghanaian economy.
Mr. Morgan Asiedu, the Executive Director of Legal and Human Resource at Ecobank, indicated that the SMEs play a major role in the economies of all developing countries. As per the World Bank’s 2015 report, the formal SME sector alone, contributes over 60% of total employment, whilst 40% of GDP in emerging economies like Asia and Sub-Saharan Africa.
However, he said the sector is faced with some challenges such as “lack of access to credit and high cost of credit”, which according to him are characterized by the informal nature of the SME sector, poor literacy on the part of most SME operators and inability to keep proper books of accounts. These he said needs some attention.
In his welcome statement, the Coordinator of JBA, Mr. Suleiman Mustapha said, the association is an advocate for businesses with the sole aim that, the numerous challenges the businesses face could be brought to the attention of policy makers for them to be addressed.
The group, he said, was grateful to the BoG and Ecobank for their continuous support for the training programmes to equip journalists with requisite knowledge on how to report on small and medium enterprises (SMEs).
According to him, this annual training workshops for the Members of JBA, has indeed sensitised journalists on business reporting, especially on Small and Medium Scale Enterprises (SMEs)
The workshop saw the participation of journalists from the print, electronic and online media, and Participants were taken through topics such as monetary policy, promoting financial stability, regulation of microfinance industry, interpreting financial statements and the role of journalists in economic reporting with resource persons drawn from various sectors of the BoG.