An Economist and former Chief Executive Officer (CEO) of Stanbic Bank, suggests the government should embrace effective digital systems for managing credit in Ghana.
Andani urges the government to establish robust technological infrastructure to streamline loan acquisitions and implement monitoring mechanisms to ensure efficient fund utilization.
Speaking to the Ghana News Agency during the launch of the 10th anniversary of the Chartered Institute of Credit Management (CICMG) in Accra, Andani highlights the importance of these measures in addressing the recurring debt crisis.
He emphasizes the need for accountability from the government and advises against excessive expectations from citizens to avoid undue pressure for debt accumulation.
Additionally, Andani cautions political leaders against making overly ambitious promises at various levels of governance, which may lead to unsustainable spending beyond budgetary limits.
Currently serving as the Executive Chairman of LVSAfrica, an integrated business advisory and enterprise development firm, Andani expresses concern over Ghana’s recurring debt crisis.
Ghana’s debt is now “unsustainable”, with the government implementing a US$3 billion loan-support programme with the International Monetary Fund (IMF) to overturn the situation and reach 55 per cent debt to Gross Domestic Product (GDP) of 55 per cent by 2028.
“Our current debt situation leaves so much to be desired; I’ve been in finance for a very long time, but we’ve not seen this level of despair within our credit system, and the impact on financial services,” Mr Andani said.
With over two decades of experience in banking, particularly in credit management, the former banker identified the recurrent debt crises in Ghana as stemming from governments’ failure to appoint individuals who could effectively utilize borrowed funds.
He proposed the adoption of digital technologies to allocate loans to the most efficient users and to implement thorough monitoring to ensure optimal returns in the country’s productive sectors, thereby facilitating timely repayment.
He emphasized the centrality of credit in financial services, as it typically serves as the conduit for acquiring sufficient funds from investors, investing these funds for profit, and subsequently repaying the loan.
“Financial service providers gather resources from surplus owners who want them for safe keeping and access it anytime they want and also make it available to those who want to use it create asset and develop enterprises,” he said.
“It’s for all the operators; the government, citizenry, financial service providers, and regulators to rethink our role and manage expectations, and rearrange the payment, which is what’s been done, and be able to pay back,” he advised.
During the event, Dr. Anthony Aubynn, Chairman of CICMG, encouraged credit management professionals to persist as catalysts for change, advocating for policies that foster responsible lending practices and promote financial inclusion.
Dr Aubynn said it was important to “embrace innovative technologies, such as blockchain, artificial intelligence, and big data analytics to streamline processes, mitigate risks, and extend financial services to underserved communities.”