Investment Banker and CEO of Africa Investment Group, Dr. Sam Ankrah has questioned government’s investments choice for the country’s oil revenue.
[contextly_sidebar id=”XUXXgM1uHgie8Mhtf19pT91laPC1CDDk”]According to him ‘why are we investing our stabilization and heritage funds which has accrued up to $448M in foreign portfolios at a rate of 2% and 2.5% respectively? And our banking and finance leaders are very quiet. This requires sound management of our natural and national resources.’
This adds to the several demands on government to change its strategy and look for alternative investments for the country’s oil proceeds due to the merger returns so far on investments.
The Ghana Heritage Fund recorded a negative 0.54% return in the first half of this year while the Ghana Stabilization fund recorded a 0.33% interest for the same period.
Speaking as the guest speaker at this year’s Ghana Banking Awards , Dr. Ankrah called on government’s investment advisory committee to consider several viable investment options in the country.
‘I beg to differ on the issue of where and how we disburse our stabilization and heritage funds and I think it is not too late to rethink it through; after all that is what the legislature is there for. A clear case of things done right and not the right thing. Is the justification for this action purely based on the fact that relevant legislation governing the disbursement of our oil revenues dictate so, regardless of the socio-economic realities on the ground.? Where is the justification? At a time when investors are taking advantage of opportunities in the housing sector for example, in our country instead of their own countries due to the low return on investment in their Countries, especially Europe and America.’ He said.
Meanwhile the Parliamentary select committee on finance recently said it was confident government’s investment advisory committee will guide Ghana to get the best return on its oil revenue.
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By: Rabiu Alhassan/citifmonline.com/Ghana