The Finance Minister disclosed this at the ongoing “Partnership for Making Finance Work for Africa’ where over 250 senior level financial sector players from over 30 countries are meeting to deliberate on ways of boosting Africa’s financial sector considered as key in unlocking financial growth on the continent.

Mr. Baah-Wiredu stated that Africa can boost its financial sector development support by overcoming fragmentation and increase aid efficiency by addressing four key constraints for efficient development partners’ support within country-owned developments.

The constraints, he explained, are lack of coordination between the private sector and other stakeholders, the restriction of financial sector development initiatives hindered by knowledge gaps in important areas and the lack of country-owned comprehensive financial sector development strategies and action plans.

Research has suggested that countries with functioning financial markets grow faster and achieve lower poverty rates by helping to channel resources to their most productive use and thus reduce dependence on external financing.

Mr. Baah-Wiredu said creating an integrated financial market in Africa thereby perpetuating economies of scale is very essential in building efficient financial and capital markets.

He emphasized that though policy reforms as well as improved governance have been adopted in many African countries over the last decade, private sector credit as a ratio of Gross Domestic Product (GDP) currently stands at 14 percent and this is still insufficient to drive growth and private sector development though availability of credit has improved.

Gabriel Negatu, a Director at the African Development Bank called on African countries to count on their development partners since they are key in the growth of financial markets in Africa.

Over the last decade, the continent has been noted for laying a strong and vibrant financial market and these reforms according to Mr. Negatu are needed to ensure a strong financial performance.

On his part, Vicenzo La Via, Chief Financial Officer of World Bank, said financial resource is the driving force behind employment generation in Africa.

According to him, increased access to financial resources will enable many people to have access to capital.

The meeting is expected to end later today, as appropriate recommendations are expected to be made, aimed at scaling up resources for the development of the financial sector in Africa.

By Charles Nixon Yeboah
From happyghana.com