Ghana’s insurance industry recorded a substantial 22% growth in its investment assets in 2023, reaching a total value of GH₵10.5 billion, up from GH₵8.6 billion in 2022, according to the latest Bank of Ghana’s 2023 Financial Stability Review report.

Ghana’s Insurance industry seems to have weathered the storm of the COVID-19 pandemic and the domestic debt exchange programme.

The life insurance sub-sector led this growth, with investment assets valued at GH₵7.0 billion as of December 2023, compared to GH₵3.5 billion in the non-life sector.

Fixed-income assets remain a common investment strategy across life and non-life sectors.

However, the share of government securities in investment portfolios has seen a notable decline, possibly influenced by the effects of the Domestic Debt Exchange Programme (DDEP).

In the non-life insurance sector, holdings in government securities decreased by 13%, reducing their share from 38% in 2022 to 27% in 2023.

Fixed deposits in this sector now make up 23% of the investment portfolio, with listed securities and investment properties contributing 27% and 19%, respectively.

Similarly, the life insurance sector recorded a 9% reduction in government securities, dropping from 49% of its portfolio in 2022 to 40% in 2023.

This shift has been accompanied by a rise in other asset classes, with investments in properties growing to 23% and fixed deposits increasing by 8 percentage points to 21%.

These shifts indicate strategic diversification in response to market conditions, positioning the insurance industry for resilience and continued growth.

The growth in investment assets and diversification efforts signal the sector’s commitment to adapting to economic dynamics while providing financial stability for policyholders.

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Source: citinewsroom.com

The much anticipated Africa Remittance Conference UK 2024 dubbed “Market of Remittance” will be hosted in London, the capital of the United Kingdom on Saturday September 21, 2024.

It is scheduled to take place at the Canary Riverside Plaza Hotel (E14 8RS) in East London from 12noon to 6pm.

The event is being organized by Akwaaba UK in collaboration with Emergent, OmniBSIC BankGhana Limitedand Unity Link, under the theme“Leveraging Fintech and Banking Partnership for Growth”.

According to the organizers, Akwaaba UK, Africa Remittance Conference UK 2024, is a premium networking brand and the largest gathering of leading players, key and relevant stakeholders in the Remittance industries in the United Kingdom, across Europe and Africa.  

Speaking on the rationale behind the event, the Chief Executive Officer of Akwaaba UK, Mr. Dennis Tawiah, indicated that the annual event is the first of its kind and a platform created for all recognized players in the Remittance Industry in the United Kingdom, Europe and Africa.

“We are excited to be hosting the Africa Remittance Conference UK 2024 after years of working with key players within the sector within the UK, Europe and across the African continent,” he said.

According to him, “We have identified the need to enhance growth and development in the sector. Remittance contributes to ending poverty and hunger, promoting good health, quality education, clean water and sanitation, decent work and economic growth, and reducing inequalities.”

On his part, the International Relations and PR Manager for Akwaaba UK, Chris Koney, highlighted the importance of the Africa Remittance Conference UK 2024and the need for corporate entities to be interested in the conference.

“Strategic partnerships and progress on remittances go hand in hand. Participants at the Africa Remittance Conference UK 2024 will acquire valuable insights, new trends and get to know opportunities in the sector. In addition, the event provides an avenue to explore ways of developing the industry, practitioners and other professionals within the value chain,” he further stated.

In addition to the list of distinguished resource persons and speakers, there will also be Networking and Business-to-Business sessions, Deal Room for Negotiations, Investor Pitching sessions and Exhibition of Innovative Financial and Fintech products and services

The Ghanaian Cedi has crossed the GH¢16 mark against the US Dollar on the currency retail market.

A survey conducted by the Citi Business News team at various forex bureaux and banks in Accra revealed that the dollar is being sold at rates ranging from GH¢15.95 to GH¢16.20.

This development occurs as the International Monetary Fund (IMF) recently lifted restrictions on dollar auctions by the Bank of Ghana, following a significant increase in the country’s reserves under a US$3 billion economic recovery programme.

According to the July 2024 Summary of Financial and Economic Data from the Bank of Ghana, the Cedi depreciated by approximately 19.6% against the US Dollar on the interbank forex market as of July 2024. This rate of depreciation is slightly lower than the 21% decline observed in the retail market.

When the Citi Business News team visited some forex bureaux within the capital, some operators cited the current economic situation and the recent directive by the Bank of Ghana requiring Ghana cards as proof of identification from customers before transacting any service.

A forex bureau operator, Bernice Arthur, noted: “You know, now things are hard. So when the customers come, they would be begging that we should reduce the rates, you know, and when we do that, it will also affect the business. So we bargain and sometimes the customers will leave. Other times, too, we need to come down for them so that at least we can still be in business. ”

Meanwhile, another Forex bureau operator, Edward Lawson, linked the slow pace of his business to the hoarding of foreign currencies in anticipation of higher rates.

“Business has become slow because some are waiting for the dollar to rise before they come and change, which is very bad.”

Economic and Fixed Income Analyst Wilson Zilevu identified market sentiment as a key factor driving the high exchange rates.

“Speculative behaviour of foreign exchange dealers is all churning out today. Recently, the central bank also organized a seven-day option for foreign exchange dealers where they can lock in their prices.”

He urged the Bank of Ghana (BoG) to reassure industry players about the supply of forex in the market.

Source: citinewsroom.com