Blame high unemployment on slow private sector growth – Databank CEO

The Chief Executive Officer of Databank Group, Kojo Addae-Mensah has attributed the increasing unemployment rate in the country to the unfavorable business environment for investments.

According to him, private businesses are unable to expand to employ more due to their inability to access funding from the capital markets.

The Databank group head also believes the situation has been worsened by government’s continuous borrowing in the capital markets, which crowds out private businesses.

Kojo Addae Mensah was speaking at an investment summit to climax Databank’s three day investment awareness series.

“The effects are huge, a lot of graduates are unemployed because the economy is not expanding; businesses are not growing to absorb them…if there are for instance a chain of supermarkets compared to small table top stalls, the rate of employment will be massive. Government solely providing employment is long overdue. It is private sector that has to employ so we must give them the channels to expand to employ,” he stated.

Meanwhile Kojo Addae-Mensah has reiterated the need to increase awareness among Ghanaians on the benefits associated with the capital market.

According to him, there are untapped opportunities for individuals and businesses to benefit from.

“There is a lack of knowledge and a fear of a loss of control even among those who know how the capital market works… It is difficult but that is what we should be able to do. Small scale businesses can become a multinationals or conglomerates if the right advice is given we have to push and let people know that things are possible.” Kojo Addae-Mensah observed.

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