Vice President, Dr. Mahamudu Bawumia has explained that the main intention of the New Patriotic Party (NPP) Government to revitalise the ailing factories and establishing new ones in each district of Ghana is to prevent the protracted rural urban migration by majority of the youth.
“In order to create jobs, stimulate the economic activities and stem the tide of migration by the youth to urban centres, the Government of Nana Addo Dankwa Akufo-Addo is implementing various reforms and programmes to revitalize ailing factories and establish at least a factory in each district”.
The Vice President was speaking at the National Insurance Commission’s (NIC) annual event dubbed The Chairman’s Cocktail held at Movenpick Ambassador Hotel in Accra, which aims at creating a conducive setting for government Officials in especially the financial sector, policymakers, co-regulators and other entities with the Insurance space in Ghana.
The Cocktail meeting which was on the theme: “Digitizing Ghana’s Economy-The Role of the Insurance Sector”, was also meant to create the needed platform for the players to network in order to achieve an improved outcome for the Insurance sector and the economy as a whole.
Ghana in the last few decades had experienced massive movement of majority of the energetic youth including graduates from the Northern, Upper West, Upper East, Savannah, North East, Volta and parts of Bono, Ahafo and Bono East regions to the capital cities of Accra and Kumasi in search of menial jobs.
It is against this backdrop, the Government is pursuing and implementing various economic policies and programmes to stem the tide of the needless youth migration.
Dr. Bawumia applauded the Insurance industry as one of the tools for the mobilization of long term local savings to fund the development of economic and social infrastructure.
He indicated that the Insurance Sector is of strategic importance to all economies- Ghana is no exception. The Government he said is bent on digitizing the economy of which the Insurance industry has a critical role to play.
Adding, that “the ability of Insurance to pull resources and invest for long term make the Insurance sector a key stakeholder in the capital market; and this is the reason why in most countries, with developed Insurance Market, there is also a developed capital market”.
He however said, even though the Ghanaians Insurance industry has shown good growth in the past few years, the above expectations are yet to be fully met.
The Vice President intimated that Insurance companies are yet to be counted among active institutional investors on the Ghana Stock Exchange in particular and the capita market in general.