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Business News for Friday, November 20, 2020
Source: bloomberg.com
2020-11-20
More credit will come to the private sector as the government reduces its budget deficit
One of West Africa’s second-largest lenders, Ecobank Ghana Limited, has said that loan growth in 2021 will be stronger than this year, as the pace of economic growth accelerates.
“This year it was COVID-19, which we didn’t fully understand, but we found ways to fix it,” said Edward Botchway, CFO of the Accra-based lender, in an interview. “How can we transition from COVID-19, as we Let’s find ways to live with the virus, or fix a vaccine, the growth path should emerge for the industries that lost, next year has to be better.
While Botchway declined to give a more detailed forecast, he said that loans next year will expand faster than the 0.8% seen in the first nine months of 2019.
Since lifting a three-week blockade of major cities on April 20, Ghana has eased most restrictions related to the virus, including a ban on air travel.
The International Monetary Fund in October projected that the economy will expand 4.2% next year compared to an estimated 0.9% for 2019.
More credit will come to the private sector as the government reduces its budget deficit, freeing up financing from banks, Botchway said. Industries sunk by the coronavirus, such as airlines, hotels and commerce, should rebound, further fueling the crisis. demand for loans. he said.
Telecommunications, healthcare, pharmaceuticals and small and medium-sized companies that found innovative ways to prosper during the virus will continue to grow, Botchway said.
“COVID-19 disrupted most of our supply routes, so importing customers couldn’t do as much,” he said. “We expect high growth in 2021. Money transfers, travel and currency trading should pick up strongly.”
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