Debt owed by Bulk Distribution Companies (BDCs) and the upcoming election have been identified as the biggest threats to the growth of the financial sector this year.
The BDCs are currently owing a number of banks millions of Ghana cedis as a result of government’s failure to pay off debts that have accrued from subsidies it put on petroleum products.
Speaking with JOYBUSINESS, Managing Director of Fidelity Bank, Edward Effah said a peaceful election and the settling of the debts by the importers of petroleum products are crucial to the growth of the sector.
“As a business, year-in-year-out, we look at what risk did we face, and every election year there is a risk that the election may go smoothly and if it doesn’t go smoothly then it does affect business. We saw what election did in Ivory Coast some years ago and it affected some business environment.”
Mr. Effah said it is the prayer of businesses that the election goes smoothly buoyed by the fact that Ghana does not have any history of disruptive elections.
However, he said, it is just a caution to shareholders that in making all these projections let’s remember elections the election doesn’t disrupt the progress made.
“In addition, the power sector and the petroleum sector has faced some difficulties so everybody knows that ECG and VRA owe a lot of money in the sector and also the BDC and we hope this is addressed,” Mr. Effah said.