Ghana needs need-based long term investment framework - Advisor

Ghana needs to adopt a “painful but bold, need-based and goal oriented” long term investment framework that would rely on domestic resources, rather than development partners, Mr Mawuli Hedo, a Senior Investor Advisor has said.
“The Dependency culture must be broken, through the development of products, such as the long term Golden Jubilee Savings with effort to sensitize Ghanaians on the need to fund developments with the country's own resources,” he said.
Mr Hedo, who is a senior corporate advisor at the Strategic African Securities (SAS), an investment and financial advisory firm, said this when he presented a paper to members of parliament on Wednesday in Accra.
The presentation was to brief members of the legislature on the ongoing Government of Ghana Golden Jubilee Savings Bond offer, which the SAS are the lead managers.
Government intends to use the funds for various developmental projects in all the 10 regions.
Mr Hedo told the Parliamentarians that, their expected role would be to assist with the marketing of the Bond offer, especially at their respective constituencies.
“Developing an efficient domestic capital market requires sustaining instruments such as the Golden Jubilee Savings Bond.
“Policies must be developed to support the project (Bond) and also opened up the participation of larger local investor base,” he said.
Giving the features of the Bond, Mr Hedo said the minimum investment is pegged at GH¢10 with a fixed interest rate linked to the 5-year Government of Ghana rate.
Corporate bodies would have a 5-year Government of Ghana Bond rate, whilst retail investors receive a 5-year Government of Ghana Bond rate plus 0.5 percent.
Interest accrual would be compounded semi-annually.
The Bond would be sold at face value with 5-year maturity and a redemption minimum holding period of 3 years. No interest would be paid until redemption.
The offer ends June 30, 2008.