Ghanaian Economist and Investment Consultant, Kwame Pianim, has called for the establishment of a special tribunal for financial institutions, amid the government’s ongoing rollout of a new tribunals system.
Speaking at Fidelity Bank’s Debt Capital Markets Conference, Mr. Pianim explained that fund managers often struggle to recover funds from defaulting borrowers through the regular courts, which can be slow, hence the need for a tribunal to protect fund managers and fast-track the resolution of debt recovery disputes.
“But I’d now like to add to your list. The courts, the judiciary we need to build, maybe, the tribunals we are talking about, build one that will protect the fund managers. When somebody goes to build a hotel and issues a one-year note, of course they cannot pay. You take them to the courts and the courts are delaying. We need a tribunal that will settle that. And the tribunal should be the end.” Mr. Pianim proposed
Mr. Pianim added that in cases requiring review, disputes should not return to the regular courts, but rather be handled by a small panel comprising an appeal court judge, a finance expert, and a banker.
“You don’t finish the tribunal and go and join the normal courts. The end. If there needs to be a review, one appeal court judge plus a finance person, a banker ,three of them settle the issue, and the guy has to pay.” Mr. Pianim added
On the country’s growth and the various forecasts around it, Mr. Pianim stressed that Ghana needs to pursue prudent growth, arguing that the country should not rush to grow beyond 6% a year.
“We should not try to grow more than 6% a year. That means, if you take a capital-output ratio of 3 to 1, you need 18% investment for maintenance and new structures. If our savings are just 12 to 13%, we need 5% more from elsewhere …,” Mr. Pianim added.
He urged insurance companies to aim to move from under 1% of GDP in premiums to 2% of GDP, while ensuring that regulations are enforced and more people are brought into the insurance net.
“Insurance companies should try to move from just under 1% to 2% of GDP in premiums. And insurance companies should make sure the rules are obeyed if you are building a structure, a church, anything, you have to insure it. And that means liaising with district assembly officials to be able to do that,” Mr. Pianim stated.
Kwame Pianim is a veteran Ghanaian economist and investment consultant with decades of experience in public policy and finance, including a background in banking and capital markets. He is a regular commentator on Ghana’s economic policy and has previously served in various advisory and leadership roles within the financial sector.
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