The country must identify and focus on the production of additional export commodities to boost foreign exchange earnings to help stem the depreciation of the cedi against the dollar, Mr Alhassan Andani, Managing Director of Stanbic Bank has said.
According to him, the country needs to diversify the economy and focus on the production of more export commodities to rake in more foreign exchange adding that, a boost in cocoa production, non-traditional exports and oil production could help reverse the fall of the cedi.
The cedi has depreciated against the dollar about 24 per cent since 2013 and has from the beginning of the year been trending downwards.
Speaking to journalists in Accra, Mr. Andani said there is a positive economic outlook for 2014 and disagreed with the bleak forecast for the economy.
He said the removal of subsidies and increase in some taxes would enable government to raise more revenue to meet its obligation and reduce borrowing to free up resources for the private sector.
He said government?s effort to address the budget deficit must be supported through prioritise spending to cut the budget deficit.
”Government should invest in areas that will bring in additional revenues,” he said, and mentioned investments in the Takoradi and Tema ports and infrastructure development projects as key to meeting the resource generation goals of government..
On inflation, he said, the current rise was partly influenced by the hike in utility prices, predicting that the rate would begin to trend downwards after the effects had normalized by the end of the first quarter.
”We hold the view that inflation will be relatively high in the first quarter and improve in the second quarter,” he said.
On his bank?s performance last year, Mr. Andani said 2013 was a good year although there was a slowdown which he attributed to the election petition hearing.
He said the bank was able to increase its market share and made progress in the execution of its plans.
Mr. Andani said in 2014, the bank would focus on supporting small- and medium-enterprises, personal and business banking, to reach a lot more
customers and also provide financial literacy services for the unbanked.
Mr. Andani said there is also the plan to double the bank?s finance to the agriculture sector in 2014 from the current level of about GHc56 million.
”Stanbic Bank’s wants to be part of government?s efforts to revamp agriculture, particularly the poultry industry.” he said.
GNA
