The Chief Executive Officer (CEO) of the Republic Investments (Ghana) Limited, Mr Peter Larbi-Yeboa, is projecting that the ongoing economic recovery will continue in the same trajectory as business and investor confidence in the economy remains high.
Towards that end, he said, the likelihood of increased oil production after the International Tribunal for the Law of the Sea (ITLOS) ruling in favour of the country, and ability of the government to sustain stabilisation programmes were the factors to help grow the economy.
“With World Bank’s projection that the Ghanaian economy is likely to grow by 8.3 per cent, we expect the economic activity to be vibrant and robust.
We expect earnings growth on the stock market to remain robust on the back of the ongoing economic recovery, improved earnings, low inflations and low interest rates,” Mr Larbi-Yeboa said at the 2018 annual general meeting (AGM) of the investment firm in Accra.
He mentioned that his outfit was committed to investing only in quality assets for the fund by taking advantage of strategic investment opportunities to grow the fund to its maximum.
“We urge you to continue to invest in the fund so you enjoy the benefits of this economic turnaround,” he said.
Growing the fund
He reiterated the commitment of the investment firm to considerably grow the fund this year.
“We shall take advantage of opportunities in the stock market and the secondary market to achieve this aim. We shall monitor the changes in the investment climate and rebalance the portfolio to give optimal returns to our unit holders,” he added.
Mr Larbi-Yeboa stated that the Ghanaian economy grew to 7.90 per cent in 2017 from 3.6 per cent in 2016. In the year under review, prices of Ghana’s export commodities on the international market recorded mixed performance.
For instance, he said, crude oil prices increased the most as a result of geopolitical tensions, supply constraints and strong demand. Gold prices rose higher than anticipated, however, cocoa prices were low due to excess supply across the West African sub-region.
According to him, economic activity had been robust and investor confidence remained high throughout 2017 on the back of positive sentiments on growth prospects, realisation of business expectations and general improvements in the economy.
The local currency depreciated by 5.13 per cent against the United State (US) dollar, 19.38 per cent against the euro, and 14.83 per cent against the Pounds Sterling.
Interest rates on Government of Ghana papers saw a significant drop in 2017. The treasury yields on the 91-day, 182-day and one-year note dropped from 16.43 per cent, 17.64, and 21 per cent in 2016 to 13.35 per cent, 13.88 per cent and 15 per cent in 2017 respectively.
The monetary policy rate also trended downwards from 25.50 per cent in 2016 to 20 per cent at the end of 2017.
Consumer price index declined from 15.4 per cent in December 2016 to 11.8 per cent in December 2017 on the back of dampening inflation pressures which was mainly attributed to non-food components of the consumer basket.
This notable decline was, however, above the government’s 2017 inflation target of 11.2 per cent. —GB