Francis Akinnodi
Government at all levels have been urged to mobilize savings locally and from external sources to accelerate economic growth.
“The ingredient of economic growth is savings.”
An economist, Dr Timothy Awe gave the appeal when speaking with The Hope at weekend.
According to him, “This is needed in order to set up industries or businesses that would provide employment for the people, which would improve the standard of living and reduce poverty.
“It is at stock exchange that you can mobilize medium or long term funds locally at a very cheap rate. This is because raising funds through banks could land one in trouble because of the high cost of funds.
“But, the capital market offers prospective entrepreneurs the opportunity to raise funds at a very cheap rate.
“The capital market therefore offers people to be part owners of businesses or companies because it is business that develop the economy.”
He further explained the foreign investment can come in only when the stock exchange is functioning effectively.
“Business can continue to exist because the citizens of the country can continue to run the business.
“So, when there is a reliable, efficient and transparent stock exchange, foreigners would be attracted to invest in the economy because with that, they know that the level of risk is low and this would directly accelerates economic development,” he said.
