Tuesday, March 2, 2010

Sir Richard Branson gives economy thumbs-up

Ghana has been identified as the beacon of hope for attracting huge foreign direct investments into the West Africa sub-region.

Sir Richard Branson, founder and president of Virgin Group whose investments cut across a wide spectrum of the global economy, said this in a presentation that was broadcast in Accra at the just-ended 2010 Opportunities Conference. He praised Ghana’s political and economic progress in recent times, which ranks it above the other countries within the sub-region and positions the country as a preferred investment destination among its equals.

“Ghana is a success story in West Africa, which is why more investors and travellers are attracted into the country to partner with entrepreneurs to enter into business for economic growth.”

Ghana’s economic growth is projected to accelerate to between eight and ten percent by 2011, on the back of the newly-discovered oil.

However, economic growth rate is expected to recover modestly to 6.5% in 2010, from the 4.7 estimated growth rate of 2009, benefitting from the global recovery and exceptional public investment in the new oil sector.

Economic performance in 2010 is expected to be hugely shaped by investments in oil-related infrastructure, while 2011 growth is expected to be influenced strongly by revenues from the oil exports.

Experts have indicated that the country will realise at least one billion dollars per annum over the next twenty years as revenue from oil. This represents some 25 percent of current tax revenue or some 6 percent of GDP; barely adequate to make up for the current government deficits.

Speaking to participants drawn from academia, the investing public, government officials and youth from the country’s tertiary institutions, he observed that the last two years has been more turbulent in the financial sector in some countries’ economies with some banks collapsing. But he indicated that this presents opportunities rather than challenges.

Sir Richard cited that in the United Kingdom most established banks collapsed and were forced into government ownership, while government borrowing is sky rocketing into billions of dollars just to stem the global financial meltdown and its implications on economies.

This is a truly global crisis with countries finding demand slowing and availability of money dying out, he explained.

He indicated that with of every crisis comes an opportunity, and it is now the entrepreneurs and dynamic companies that can make a real impression.

The need for innovation and entrepreneurial spirit can never be greater, adding that good entrepreneurs are aware of daunting challenges and develop ways of growing leadership and market shares as well as finding their way through.

He charged entrepreneurs to use challenging times as the real opportunities to find new businesses and keep focusing on their positions.

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