INTRODUCTION

 

CDB began by  exploring some of the  investment opportunities that could potentially GROW Ghana, PROSPER Ghana and make Ghanaians consume and believe in Ghana - with or without DUMSOR

 

CDB focused the presentation on his experience of living, traveling and working in Ghana in the last decade.

 

 

CONTENT/ GUIDING QUESTIONS

 The following questions were used as a guide:

• - what is the meaning of investment?

• - what dimensions do diff actors give to investment?

• - is it good and ethical to make investment?

• - what traditional investment opportunities exist in Gh?

• - what investment opportunities could help to grow, prosper and ensure inclusive devt in Ghana?

 

What is Investment?

Investment is putting money into something with the expectation of a gain. Or in simple terms the use of money with the hope of getting more money. "Letting your money work for you."

 

MEANING AND DIMENSIONS OF INVESTMENT

Investment has different meanings in economics and finance and even personal finance and real estate theories . 

In economics, it is the accumulation of newly produced physical entities, such as factories, machinery, houses, and goods inventories.

 

In finance, investment is putting money into an asset with the expectation of capital appreciation, dividends,and/or interest earnings. Financial investments are usually in stocks, bonds, and other types of security investments. Indirect financial investments can also be done with the help of mediators or third parties, such as pension funds, mutual funds, commercial banks, and insurance companies.

 

According to personal finance theories, aninvestment is the implementation of money for buying shares, mutual funds or assets with capital risk.

 

According to real estate theories, investment is referred to as money utilized for buying property for the purpose of ownership or leasing. This could be commercial real estate or residential real estate.

 

TO SUMMARIZE

When you commit money or capital to purchase financial instruments or other assets in order to gain profitable returns in the form of interest, income, or appreciation of the value of the instrument, you are making investment. Investment is related to saving or deferring consumption. 

 

ETHICAL BASIS FOR INVESTMENT

 

With this understanding, we ought to ask if all investments are good and ethical

 

What does the State and Religion say about Investment? Is it good or bad? Is it moral to make profit from investing?

 

The State and most religion agree on investment even though they differ in approach and purpose...

so let us look at how each addresses investment. I dont have my Qu'ran here though...Sheikh and Alhaji, are u here?

 

1. The Bible is said to support investment. In Matthew 25:14- 30 we read abt the Parable of the Three Servants. The First servant given 5 talents, Second servant given 2 talents third Servant given 1 talent. The business of respecting and adding value to our natural endowment was mooted more than 2000yrs ago as we've seen in the biblical parable of the talents. it shows that the Bible respect the need to make investment for our prosperity.

2. Islam support investment but doesn't put much interest on profit. The Qu'ran support Islamic banking institutions but its approach is quite  diiferent as outline for further reading in the ff article: "Money in Islam" http://www.quran-m.com/firas/en1/index.php/legislative/237-money-in-islam.ht

3. The government also supports Investment – The Legislation on compulsory contribution by workers towards pension - SSNIT and recent amendment are e.g. The govt has provided enabling env't for all kinds of investment institutions to thrive, including illegal ones. I havnt come accross any objection to investment yet, have you?

 

 

ADVANTAGES OF INVESTMENT

So we can look at some advantages and also why we sometimes fail to invest

 

Advantages of investment

Like the servant giving only 1 talent, the question always arises as to why we shd consider investing. 

 

Here are some reasons to think abt:

 

1. It enables you to save money for a future need.

2.  It makes your money work for you. i.e. earn an interest.  (Time value of money) i.e  to earn an interest. You remember why the master was angry with the servant who even failed to put his money at the bank

3. It can provide a needed startup capital for a business. For example if you need GHS 10,000 to start a business, you can save GHS 1,000 a month and within 10 months you will raise the capital

4. To meet unexpected expenditure in life “Family security”

 

WHY PEOPLE DO NOT MAKE INVESTMENT

Let us also look at why we usually are unable to invest so that we can overcome them...

1. Lack of planning/budgeting to save for investment

2. We are usu under Peer pressure or we want to follow the lifestyle of our peers so we fail to see investment opportunities.

3. We often indulge in impulse buying to fill our garages, stomach and wardrobes.

4. Poor healthy living which often swell our budget on health.

5. Sometimes we focus too much on societal perception and expectations which derail our ability to save for investment.

6. Lack of funds due to overspending.

7. Lack of trust for strangers handling their money.

8. Lack of knowledge on investment

9. Lack of partnership drive among Africans.

 

 

INVESTMENT OPPORTUNITIES TO CONSIDER

There are many types of investment opportunities in Ghana, each with its own level of risk and return. The more money you can make from an investment, the higher the risk that you might not get all your money back. But what if the real risk is that you would be losing part of your money to the development of Ghana and humanity? Would u still invest?

 

CDB focused on 5 main opportunities that could help spark the development we always wanted to happen in Ghana.

But first, some hints abt the traditional investment opportunities in Ghana.

 

TRADITIONAL INVESTMENT OPPORTUNITIES

The Ghana Free Zones Board has identified sectors requiring strategic investment and the sectors that have been identified as priority areas for foreign direct investment. It been agreed that Ghana has comparative advantage in these areas and intends to capitalize on this advantage to attract investment into the country. http://www.gfzb.com.gh/investment%20opportunity/index.php

 

These include 

1. ICT

2. Textile/apparel manufacturing

3. Agro processing

4. Seafood processing

5. Jewellery/handicraft production

6. Metal/hand tool fabrication

7. Floriculture

8. Light industrial/Assembling plant

9. Ceramic Tile manufacturing

10. Pharmaceuticals

 

 

The GIPC Ghana Investment Promotion Centre has online tool for  info and updating investment opportunities in Ghana... See more at http://www.gipcghana.com/

 

You shd also consider the real estate investment opportunities. Talk to your agent or broker or visit and use online tools to know more

 

The Banking and financial institutions, the insurance companies and other schemes have tools for both short and long term investment. Talk to your bank and/or ur broker for options.

 

SIMPLE NON-TRADITIONAL INVESTMENT OPPORTUNITIES 

Now, let us explore the 5 areas of investment opportunities that could potentially GROW Ghana, PROSPER Ghana and make Ghanaians believe in Ghana.

 

1. Investing to take over or develop Joint ventureship or partnership in SMEs for productivity increase, efficiency and intensification of the enterprises that may also propel and drive the economy, create jobs and create wealth. You could achieve 30-60% yield from investing in the following.

 

1A. Investment to make  Agriculture tree crop farming enterprises profitable and attractive to the next generation of farmers.

Cocoa and fruits have supported our foreign income earnings for centuries. Agric Productivity is only abt 40% of the real value of the farms. Most farms require investment into replanting, new technology of fertilizer use, access to tools and services incl finance to achieve the desire results. For growth, prosperity and inclusive devt, investment in agric is still key. Consider ur risk by investing into sustainable yield increase of existing farm than starting a new one.

 

 

1B. Invest in the emerging market of vertical real estate where land is used as equity for developing high rise building in prime areas. This could potentially yield over 60% of the investment in the medium term. People are inclined to live in poverty than to sell their lands located in prime areas to developers. A piece of land is lying iddle in a prime area like East Legon, Adum, Kwasimintim or Airport residential area bcos the owner has no money to develop it and yet would sell it for obvious reasons. Sometimes the value of the land may also scares potential developers. 

 

Considering land as an equity, the land could be developed into a high rise building where the land owner become the owner of a floor or two with all others going to the developer. This is quite similar to our culture of sharecropping in farming. It would be a good way to adapt our investment to enhance our culture. Your best chance to develop a property in prime areas is developing a high rise building in a shared manner creating a win-win and supporting Gh to also modernize.

 

1C. Consider Investment into Artisanal businesses by providing technology and efficiency to support the modernisation of design, structuring and finishing of their products. This could increase profitability and market access and yield returns of over 40% in the short to medium term. I am looking at investing in artisans such as:

i. carpentary works

ii. Metal works

iii. Local craftmanship and apparels

iv. Batik and tie&dye textile making

v. Artisanal oil mills

vi. Others

Ghana made products from these SMEs are durable but unable to compete bcos of the finishing, branding, marketing, etc.

The Labour practices at these enterprises are also not very good for branding in the age of sustainabilility.

 

Invest to create a win-win.

 

2. Investment into Waste Management enterprises. This is an opportunity that would not only yield huge returns but  would create jobs, make our communities clean and reduce our health bill while recycling for devt. Opportunities in waste mgt investments are in the areas of 

i. SMEs in Waste collection and disposal

ii. Waste recycling

iii. Waste treatment and mgt

iv. Conversion of waste into products, i.e. energy, fertilizer, etc The age of bollarman belongs to the past...

 

We need SMEs in this area to grow

 

3. Investment into Small scale mining.

With galamsey impacting on our envt, natural resources and recent concerns and policing, Small Scale Mining offers potential for investment. This has huge initial capital investment req but if the Chinese can do it, yes we can. Just prepare for few admin procedures 

 

4. Investment in setting up enterprises and factories for value addition and innovations. Investment into SMEs in the ff areas are required across the country...

A. Supply chain company in Processing and supply - fruits, veg, meat, cereals, etc

B. Modernisation and supermatisation of market for local goods

C. Factory for home-mades - e.g. chocolate,  Brewery, 

We do not always have to start big...family businesses and partnerships are key

 

5. Investment in factory of human devt and systems. The ff are yielding significant returns on investment:

i. Day Care and Creche

ii. Vocational and skill devt centre

iii. ICT, music, playing centre mgt for kids

iv. Security Systems devt and mgt

 

A little joke...

If and when you can, consider Investment opportunities in

A. Building and managing a church, 

B. A miracle centre for women

C. Centre for healing tipaayoos

D. Centre for sexual healing and waist maleability...

Good luck!

 

Remarks

So I can only exhort you to consider an  investment opportunity today...

We have been blessed physically with family, wife, children, intellect, career, property, money, etc. We must increase the allotment we've been given and leave every situation better than it was before we were entrusted. We must seize the opportunities we've been given and have the courage to forge into the unknown. We must facilitate the untapped power of our possibilities and maximise every gift and grace we're given. Our kids must become better than us; Our $£€ today must worth more tomorrow; our sweat today must earn us a decent package at retirement; your money must work for you and your society. 

 

Thank you for your attention.