Ghana 2018 | ECONOMY | COLUMN

TBY talks to Sangu Delle, CEO, Golden Palm Investments, on the sector.

Sangu Delle

What is needed from the government to facilitate business relationships?

It needs to focus on the macro fundamentals of the economy to make sure we rein in inflation, control our fiscal deficit, and control our country balance sheet. Banks in Ghana are not drawn to the business sector when they have 20% risk-free government debt as an alternative. The high interest rates stem from the high level of inflation. If the government is constantly borrowing, this crowds out private borrowing. Additional steps should be taken concerning currency stability.

What opportunities do the current regulatory and economic environment create in Ghana?

The government has stated at a policy level its intention to support local industrialization, and thus any industry with a relative competitive advantage should benefit from the expected changes. There is a real opportunity for growth in value-added processing, where we have the local raw material readily available. Some of our portfolio companies are in the processing space, and we are weighing these opportunities to ensure we understand them fully. However, depending heavily on government policy means one cannot plan 20 years ahead. We have to think rather short term in political cycles.