The Head of Corporate and Investment Banking at Stanbic Bank, Timothy Mugodi, has emphasized the need to grow the capacity of local industries if the country wants to grow the economy.

Speaking on what corporates and individuals can do to cope and thrive in the current difficult economic circumstances, he said, “Adjusting your financial plans and reducing expenditure is one of the ways we can navigate these difficult times. For instance, reducing our reliance on imported goods in favour of locally produced goods will help us reduce our expenditure considerably.

“This helps not only ourselves in terms of saving money, but also helps the economy by reducing the burden on imports and that will take off the pressure from the local currency. It will also create demand for local products and local industries can find opportunities to produce more to support economic growth. As we have all come to appreciate, you cannot grow an economy without growing local industries.”

Tim Mugodi further advised corporates and individuals to work towards reducing their debt burdens as a way of coping with the current situation.

According to him, “If you are running a business your ability to continue making profit will be diminished by the interest burden you have to pay on loans. One of the ways you can address this is to look for ways to reduce your debt burden, put a bit more equity into the business and reduce what you borrow so that you can cope with the difficult economic circumstances.”

He went on to encourage people to seek financial literacy while building reserves and savings.

“It is important that you build reserves over time whether as an individual or a corporate organization. At the national level, doing this will help support the economy. So, whatever you earn, you must make allocations for savings because accumulation of reserves to help you cope. Finally, we must all seek to upscale ourselves and accumulate knowledge to help us make the correct financial decisions. This also helps to enhance your sources of income,” Tim Mugodi said.

Mr. Tim Mugodi said this at the 2023 second quarter edition of the Graphic Business/Stanbic Breakfast Meeting in Accra.