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According to investopedia, finance is defined as the science that describes the management, creation and the study of money, banking, credit, investments, assets and liabilities.
Finance sector is and will always be the major contributor, holder and backbone in the development of a country’s economy as well as the development of a company and individuals and the world as a whole. Because without the finance sector in a country’s economy functioning effectively there can’t be improvement in all the sectors that boosts the country’s economic growth rate and also the lives of individuals and organisations.
There are several quotes from famous authors and finance experts and this include :
Henry Ford, an American industrialist and founder of Ford motor company once said and I quote ” IT’S NOT THE EMPLOYERS WHO PAYS THE WAGES; EMPLOYERS ONLY HANDLES THE MONEY, IT’S THE CUSTOMERS WHO PAYS THE WAGES ”
Lao Tzu, a Chinese anicent philospher and writer once said and I quote ” A JOURNEY OF A THOUSAND MILES MUST BEGIN WITH A SINGLE STEP ”
Theodore Roosevelt, the 26th president of the United States of America, a stateman, author, solider, and explorer once said and I quote ” BELIEVE YOU CAN AND YOU ARE HALFWAY THERE ”
Warren Buffet, an American business magnate, investor, philanthropist and the World’s second richest man once said and I quote ” THE STOCK MARKET IS DESIGNED TO TRANSFER MONEY FROM ACTIVE TO THE PATIENT ”
Adam Smith known as the wealth of nations, a Scottish moral philospher, pioneer of modern economy, father of modern economics once said and I quote “PEOPLE OF THE SAME TRADE SELDOM MEET TOGETHER EVEN FOR MERRIMENT AND DIVERSION, BUT THE CONVERSATION ENDS IN A CONSPIRACY AGAINST THE PUBLIC, OR IN SAME CONTRIVANCE TO RAISE PRICES ” which are all 100% true and clear when building and developing a country’s economy.
Moreover under the leadership of H.E John Dramani Mahama, the finance sector is in a deporable and terrible stage to the extent that the various sectors of the economy boosts and improves the economic growth rate ain’t functioning effectively and this is as a result of the mismanagement of state resources and funds and has lead to a serious economic hardship which have affected organisations and companies as well as the lives and well being of the individuals whose taxes are used in developing the country. His achievements in the finance sector are so poor and in a very bad shape and has performed abysmally as bulleted below:
* Mismanagement of state resources and funds for private gains
* Gross Domestic Product ( G.D.P ) economic growth rate of Ghana in 2015 was 3.5% has fall to 3.2% as of May, 2016 and are expecting to increase to 4.2% or 4.5% by the end of 2016
* Recorded the highest debt per G.D.P service ratio to be over 70%
* Recorded the highest interest rate of 33% and currently interest rate at banks stands at 26%
* Excessive borrowing has accumulated a total debt stock of GHC 105.1 BILLION representing 66.4 % of G.D.P according to may,2016 stat
* Manufacturing growth rate have recorded negative for the past three years
– 2013> -0.5%
– 2014> -0.8%
– 2015> -2%
* Agriculture growth rate stands at 0.04%
* Oil revenue generated from 2009-2015 was $4 billion dollars
* Mining sector revenue currently stands at $3.1 billion dollars
* Cocoa revenue generated from 2009-2015 was $14.5 billion dollars
* Gold export revenue generated from 2009-2015 was $25 billion dollars
* Tax revenues and loans generated from 2009-2016 was GHC 248 billion cedis
* Cedi to the dollars is almost GHC 4.00 to a $1
* Ghana’s external debt recorded in 2015 was $14 billion dollars
* Ghana’s interest rate per principal has increased from $750 million dollars to $10 billion dollars
* Joining International Monetary Fund I.M.F has resulted in the laying off of workers due to the conditionalities it has within the agreement and this has affected the economic growth rate of the country leading to economic hardship
* Interest rate on the October, 2015 Ghana’s eurobond agreement signed under Prez Mahama’s administration is 8.34%
* Inflation growth rate as of July, 2016 stands at 16.7%
* G.D.P by sector stands at;
– Service> 50.6%
– Industry> 28.1%
– Agriculture> 21.3%
NB: The total debt stock of GHC 105.1 BILLION in may,2016 stat was a debt incurred both internally and externally and the debt incurred internally stands at GHC 43.2 billion representing 27.3% of G.D.P and the debt incurred externally stands at GHC 61.9 billion representing 39.1% of G.D.P
With this clearly shows the mahama’s administration has failed thoroughly in the finance sector which is known to be the backbone of the country’s economy and without the help of the finance sector, the various sectors of the economy can’t function effectively and it’s the finance sector that gives out budgetary allocations to other sectors of the economy to work with to boost the economic growth rate and with the current situation on grounds shows how the finance sector under the mahama’s administration has failed to achieve it’s priority with all the resources and funds the state has acquired in order to help in the deveolping of the state but rather misusing state funds and resources in purchasing five stars first class hotels for themselves by both the president and his government officials whiles the citizens whose taxes are being used to develop the nation are suffering. Ghana under Prez Mahama’s administration is a doom country
On the other hand, during President Kufuor’s tenure in office, there was great and massive improvement in the finance sector which make Ghana to grow from a developing country to a semi developed or middle income country and this had a great impact on the country’s economy, organisations or companies as well as the lives and well being of the individuals. His achievements in the finance sector which is known to be the backbone of the country’s economy is the best as bulleted below :
* Joining Highly Indebted Poor Country H.I.P.C reduced Ghana’s level of borrowing
* Proper management of state resources and funds for proper and better used to benefit the taxpayers
* G.D.P economic growth rate of Ghana in 2008 was 9.1%
* The size of Ghana’s economy was quadrapled from $3.9 billion dollars in 2000 to $16.3 billion dollars in 2008
* Inflation growth rate reduced reduced from 40% in 2000 to a single digit growth rate of 9.6% in 2006
* Interest rate fell from 50% in 2000 to 25% in 2008 and with this banks were rather chasing customers for loans
* Daily Minimum wage was increased from 42 pesewas to GHC 2.25 pesewas in 2008
* Agriculture growth rate in 2008 was 7.4%
* Oil revenue was $0 billion dollars in 2008 but still there was a massive economic growth rate
* Tax revenues and loans generated from 2001-2008 was GHC 20 billion cedis
* Under Prez Kufuor’s reigme the difference between the interest rate on the eurobond which was signed and agreed on September, 2007 and US treasuries of similar tenor was 3.87%
* Ghana’s external debt reduced from $6.1 BILLION in 2000 to $3.8 BILLION in 2008
* Cedi to the dollar in 2008 was GHC 1.20 pesewas to a $1
* Ghana’s total debt stock in 2001-2009 was GHC 9.5 BILLION
* Ghana’s foreign reserve cover was $2.7 billion dollars representing five months import cover
* Ghana’s foreign investment stood at $7.4 billion dollars
* Ghana’s per capita income increased from $270 in 2000 to $747 in 2008
NB: STATISTICS BELOW ON THE ECONOMY
* TOTAL DEBT STOCK OF GHANA FROM AUGUST, 2015 TO JULY,2016
AUGUST, 2015- GHC 94.8 BILLION
SEPTEMBER, 2015- GHC 95.6 BILLION
OCTOBER, 2015- GHC 96.3 BILLION
NOVEMBER, 2015- GHC 96.9 BILLION
DECEMBER, 2015- GHC 97.2 BILLION
JANUARY, 2016- GHC101.1 BILLION
FEBRUARY, 2016- GHC 102.3 BILLION
MARCH, 2016- GHC 103.1 BILLION
APRIL,2016- GHC 104.5 BILLION
MAY, 2016- GHC 105.1 BILLION
JUNE, 2016- GHC 108.6 BILLION
JULY, 2016- GHC 109.8 BILLION
* MINIMUM WAGE GROWTH RATE
NPP INCREASED MINIMUM WAGE GROWTH FROM THE EQUIVALENT OF $0.62 IN 2000 TO $2.12 in 2008 (THAT’S; BY 244.7%)
NDC UNDER PREZ MAHAMA MINIMUM WAGE GROWTH HAS DECLINED FROM $2.12 TO $2.02 BY 2016
2000-2008 – 244.7%
2008-2016 – 4.6%
2012-2016 – 23.6%
* G.D.P PER CAPITA
UNDER NDC G.D.P PER CAPITA HAS RECORDED A GROWTH OF 17% FROM $1,266 IN 2008 TO A PROJECTED $1,481 IN 2016 WITH OIL REVENUE
UNDER PREZ MAHAMA’S ADMINISTRATION G.D.P PER CAPITA HAS RECORDED A GROWTH OF 12%
UNDER NPP, G.D.P PER CAPITA RECORDED A GROWTH OF 187.4% IN 2000-2008 FROM ($440 – $1,266) WITHOUT OIL REVENUE
2000-2008> 187.4%
2008-2016> 17.0%
2012-2016> 12.0%
* TOTAL TAX REVENUES AND LOANS
2001-2009> GHC 20 BILLION
2009-2016> GHC 248 BILLION
* GHANA’S FOOD IMPORT BILL
2008- $600 MILLION DOLLARS
2015- $2.1 BILLION DOLLARS
* GHANA’S EXTERNAL DEBTS STOCK
1981- $ 1.9 BILLION
2000- $6.1 BILLION
2008- $3.8 BILLION
2012- $10.2 BILLION
2015- $14 BILLION
COMPILED AND SIGNED BY
ABEKAH EBENEZER ( ABEKAH WANLOVE )
0270507094
SOURCE: pinkfmonlinegh.com/ MARKUS OKYERE (PROF MARKUS)
