Finnfund, a Finnish development finance company and impact investor, has provided a US$ 10 million senior loan to First National Bank Ghana Ltd. One of the key objectives of Finnfund's investment is to support the Ghanaian financial sector and the growth of small and medium-sized enterprises (SMEs), and in particular, foster affordable housing in the country. According to estimations, Ghana is facing a shortage of approximately 2 million homes against a population of 30 million.
First National Bank Ghana (FNB Ghana) recently acquired GHL Bank, which is one of the market leaders in the Ghanaian mortgage market and the only lender serving all segments of the market.
The loan is part of a debt package which is syndicated by DEG, a German development financier.
"The recent acquisition of GHL Bank positions FNB Ghana strongly to utilise this debt package to achieve both Finnfund's investment objectives and FNB Ghana's strategy to scale home ownership in the country," said Dominic Adu, FNB Ghana CEO.
"Particularly now, in the midst of the coronavirus pandemic, we want to strengthen Ghanaian financial sector. This debt package provides additional capacity to FNB Ghana to accelerate the development of the mortgage market in the country," said Senior Investment Manager Jussi Ahonen.
More information:
Senior Investment Manager Jussi Ahonen, tel. +358 50 566 4653,
jussi.ahonen@finnfund.fi
Communications Manager Kirsi Pere, tel. +358 40 620 9767,
kirsi.pere@finnfund.fi
Head of Marketing and Corporate Affairs Delali Dzidzienyo, tel
+233501553471
DDzidzienyo@firstnationalbank.com.gh
Finnfund is a Finnish development financier and professional impact investor. We build a sustainable world by investing in responsible and profitable businesses in developing countries. Each year we invest 200-250 million euros in 20-30 projects, emphasising renewable energy, sustainable forestry, sustainable agriculture and financial institutions. Today Finnfund's investments and commitments total about 957 million euros, half of them in Africa. The company has about 90 employees. For more information, please visit
Finnfund: Financial institutions
First National Bank is a subsidiary of FirstRand Group of South Africa one of the biggest financial institutions in Africa with a full banking presence in South Africa, Namibia, Botswana, Eswatini, Lesotho, Nigeria, Mozambique, Zambia and Tanzania. First National Bank has 523 employees, 11 branches and 12 Agency Banking locations in Accra, Tema, Kumasi and Takoradi. For more information, please visit
www.firstnationalbank.com.gh
If you are renting now, buying a home could be a better financial decision. Of course, that depends on several factors such as; where you live, how much you pay now as rent, an available fit-for-purpose house you can afford, current mortgage interest rates and your aspirations.
Taking your first steps towards home ownership - and getting a foot on the property ladder - can be an exciting journey. Kojo Addo-Kufuor, Executive Head of Home Loans at First National Bank Ghana explained that apart from the financial aspect, it is also important that you're armed with information - and the right information at that - before you start your journey to homeownership.
"While it is important to do your research during the home-buying process, you must not believe everything you hear.", he says. You could do with all the help to make an outright purchase, or get a loan to buy that land, build that house or buy out that cozy property in that estate you've been eying for some time.
Contrary to what you may have heard, getting a mortgage does not require perfect credit or a large down payment. It is however safe to say you should get your finances in order before you start house hunting or talking to lenders.
Kojo Addo-Kufuor, in this piece, helps you split the assumptions, untruths and the gaps in the public knowledge on acquiring a home loan.
Mortgages are the preserve of the elderly and fulfilled
Many people in their 20s and 30s think of home ownership as a distant prospect; this is not exactly the case. Shared concerns and experience have shown that young people see the deposit as the biggest obstacle to getting on the ladder. It is not that terrible a prospect. You can now get a home loan offer of up to 100% property's value if you are resident in Ghana and up to 70% if you are non-resident. This means it is possible to buy a house without making any down payment at all.
First National Bank's innovative First Time Buyer home loan product is best suited for young professionals or executives who have just graduated into their first jobs, and/or supplemented by other revenue lines.
Such young professionals or executives could easily get to translate their monthly rent into monthly mortgage repayments towards the purchase of their own property. In fact, over 60% of the home loan client base are below age 45.
It's also important to consider that with your mortgage repayments, you're adding to the equity you own in the property with each instalment paid, whereas this is not the case when you pay rent as a tenant.
You can only get a mortgage from your bank
The truth is lots of people believe that their existing bank is the one and only place to go when it's time to think about a mortgage.
That is probably because your bank will regularly send advertising material on what they can offer relatively along with preferential rates. It however makes sense to look around some more. The banking industry in Ghana is quite diversified, and banks are adding on to their portfolio with the right partnerships. First National Bank after merging with the erstwhile GHL Bank, has enhanced its home loan portfolio to serve many more Ghanaians with products which hitherto wasn't accessible. If you are a salaried worker, you can access the broad suite of regular home loans. If you are a business owner or have multiple revenue streams, the innovative Save-To-Own home loan is best suited; just by demonstrating your ability to repay with a monthly deposit into an account for a year or two and then you have a home loan.
You need to have a perfect credit rating to get a mortgage
It's obvious that you'll struggle to get a mortgage with a bad credit history. The assessment of your application goes beyond that. Your credit history and your current ability to settle such gaps could be considered in the process. Speak to a mortgage advisor at First National Bank Ghana. These people help you make the right choices for a home loan based on your responses to some background questions and then guide you appropriately through the process.
The best mortgage deal is one with the lowest interest rate
It's certainly right to think of the interest rate as how much your mortgage actually 'costs', as this is what you pay to have your loan, on top of the equity you're accruing in your property. But that's not to say you should assume that the lowest interest rate means the cheapest mortgage.
Only full time salaried workers get mortgages in Ghana
This is a common misconception that lenders see anyone not in a full-time formal job as a risk. With the rise in freelancing, entrepreneurs, small business owners, side hustle enthusiasts, flexible and contract working in the Ghana, banks like First National Bank Ghana take a much more individualistic approach when it comes to assessing people's credit and underwriting situations. There's every chance you can qualify for your home loan application provided your income is stable and sufficient for a comfortable repayment plan.
While there are plenty of mortgage misconceptions floating around these days, from how hard it may be to qualify to how much you should put down, it's important to learn the facts and how they apply to you. The truth is, getting a mortgage is much easier than you may think. If you need financing to buy a home, talk to First National Bank Ghana's. Not doing so could delay homeownership, and the benefits you could gain by years.
In line with our HELP philosophy, we donated to 7 charitable organisations that are doing a fantastic job of making our communities and the world we live in a better place.
We shortlisted some of these charitable causes and organisations, whose work and contributions align almost perfectly with our CSR initiatives and our HELP philosophy.
Deserving charitable organisations were presented with an undisclosed sum of financial support. The charities are:
Ghana remains one of the top 10 attractive investment destinations in Africa even after the worst banking crisis in its history. Studies by Rand Merchant Bank Ltd, RMB (Corporate and Investment Banking arm of FirstRand Limited) show that a growth will be driven predominantly by the hydrocarbons sector, with a continued ramping-up of oil and gas production expected.
Johannesburg-based RMB, stated in its latest annual study known as Where to Invest in Africa, "Ghana has strong growth rates focused around the oil and gas sector, while the non-oil sector growth is supported by pro-business reforms." However, Ghana dropped from fifth to ninth place in the 2019 rankings as a result of a downward review of its 2018 growth rate by the International Monetary Fund (IMF), and the country's needed focus on fixing weaknesses in its banking sector, says RMB analysts and co-authors of the study, Celeste Fauconnier and Neville Mandimika.
"Competing economies have shown greater improvements in both the economic and operating environment indices,'' Fauconnier and Mandimika said. "Structural strength could help Ghana attain its 2019 growth forecast.''
Ghana's Ministry of Finance predicts an economic growth rate of 7.6% this year. In April 2018, the IMF reduced the 2018 outlook from 8.9% estimated in October 2017 to 6.3%. The statistical agency will release the fourth quarter growth rate figures and provisional annual figures on April 17.
Findings from the eighth edition of the Where to Invest in Africa show that efficient infrastructure is crucial in uncovering opportunities and unlock Africa's growth potential.
According to the World Bank, the lack of efficient infrastructure shaves up to 2.6% off African average per-capita growth rate, and places a significant strain on human development. The African Development Bank's most recent estimation of infrastructure needs is between US$130 billion and US$170 billion annually, but the continent's available capital is insufficient to achieve this, says Fauconnier. She goes on to say that this shortfall presents an opportunity for businesses involved in the development or financing of infrastructural projects.
In assessing the most attractive investment environments in Africa, RMB again considered two important conditions for viable investment namely; economic activity and the operating environment.
While there were changes to this year's Top 10 ranking, the top three countries from last year - Egypt, South Africa and Morocco, have maintained their positions in terms of investment attractiveness. Egypt retained the top spot as the largest African market in gross domestic product terms, boasting the largest consumer market in the Middle East and North Africa. Its economy is diversified and receives large amounts of foreign direct investment.
"Strides have been made to improve the investment and legal business environment, and growth is forecast at 4 percent,'' Mandimika said. "The availability of hard currency to service debt and the depreciation of the Egyptian pound since its flotation in 2016, however, remain some of its challenges."
South Africa has also retained its second position. According to Fauconnier, the country is currently a hot spot for foreign direct investment, with President Cyril Ramaphosa's efforts to build a US$100 billion book of foreign and domestic investments project on track. The country's currency and capital markets remain a cut above the rest of the other African countries, she said, warning that subdued economic growth and the upcoming 2019 elections have created political divisions, which hamper policymaking.
Still ranked third, is Africa's fifth-largest market, Morocco. With a growth rate expectation of 4% over the medium term, Morocco's operating environment and investment appeal have been greatly enhanced since the "Arab Spring", the reintegration into the African Union and the accession to the Economic Community of West African States.
The report's analysis of individual African countries revealed that 11 African countries are forecasted to grow above 6%. Ethiopia is set to be the fastest-growing economy in Africa, averaging 8.2% for the next six years. The robust momentum is supported by improved macroeconomic policies and higher government investment in local industries and human capital. Private investment continues to increase after the resolution of the long-standing conflict with Eritrea. Other outperformers for similar reasons to Ethiopia are Rwanda and Côte d'Ivoire.
Certain sectors provide opportunities for long-term growth prospects. Resources will continue to play a leading role when it comes to attracting funds, particularly in the hydrocarbon, base and precious metals spheres.
"The agricultural sector will become a more enticing investment target as agro-processing increases and global food demand spikes," Mandimika said. "The all-important demographic dividend, especially the strong growth in population, urbanization and GDP per capita, also provides growth prospects."
RMB also identifies other growth opportunities. From a fiscal perspective, Africa has low levels of revenue collection and the IMF estimates that sub-Saharan Africa could potentially collect an extra 3% to 5% of GDP in tax revenues by improving collection systems and broadening the tax net.
These challenges are taking time to resolve because there was no real progress in the operating environments across board. Victor Yaw Asante, the head of Corporate, Commercial and Investment Banking at First National Bank Ghana, the local unit of RMB said, the lack of access to financing, corruption, weak governance and inadequate and efficient infrastructure remain fundamental problems of doing business in Africa.
"In Ghana for example, private-sector investment is low and it could change through more business environment reforms, increased infrastructure and financial-market development." He added.
The top five performers in terms of operating environment were Mauritius, Rwanda, Botswana, South Africa and the Seychelles. Mauritius is now in its 11th year of being the easiest business environment in Africa.
Top 10 investment attractiveness-ranked countries:
| Country | Key Attractiveness Indicator | |
|---|---|---|
| 1. | Egypt | Retained the top spot as the largest African market in gross domestic product terms, boasting the largest consumer market in the Middle East and North Africa. |
| 2. | South Africa | Retained its second position as a hot spot for foreign direct investment. |
| 3. | Morocco | Morocco has a growth rate expectation of 4% over the medium term, its operating environment and investment appeal have been greatly enhanced since the "Arab Spring". |
| 4. | Ethiopia | Ethiopia is set to be the fastest growing economy in Africa, averaging 8.2% for the next six years - a slight normalization from the 10% average experienced over the past decade. The robust momentum is supported by improved macroeconomic policies and higher government investment in local industries and human capital. |
| 5. | Kenya | Kenya delivered a diverse economy and sustained expansion in consumer demand, urbanization, EAC integration, structural reforms and infrastructural development, which include an oil pipeline, railways, ports and power generation. |
| 6. | Rwanda | Rwanda is another fast-growing economy, boasting the second-best business environment. Although a small market, the government is investing heavily into its domestic industries, with a significant increase of FDI recorded over the past decade. |
| 7. | Tanzania | Tanzania is expected to grow at 6.5% over the next five years. The economy is expected to overtake Kenya, supported by its resource based manufacturing, tax incentives and development of special economic zones. It battles, however, with a weak business environment. |
| 8. | Nigeria | Nigeria jumped back into the Top 10 due to to improved macroeconomics, supported by recovering oil prices and production and to favorable demographics attracting FDI. |
| 9. | Ghana | Ghana has strong growth rates concentrated around the oil and gas sector, while the non-oil sector growth is supported by pro-business reforms. |
| 10. | Côte d'Ivoire | Côte d'Ivoire has strong growth rates, supported by large infrastructural investment, particularly in transport and energy |
First National Bank will host its 4th Economic and Business Breakfast Forum on Tuesday, 26th March 2019 at Movenpick Ambassador Hotel, Accra. RMB analysts and co-authors of the study, Celeste Fauconnier and Neville Mandimika, will unpack the latest findings of the Where to Invest in Africa 2019 publication, with a key focus on Ghana's economic future.
11 November 2023: Hundreds of runners from across the country are participating in the 2023 First National Bank Accra Marathon which took off this morning, November 11, at the Maritime University in Nungua.
The runners are vying for honours in races, including the intensive 42.2-kilometre run which is meant to test the endurance of professional athletes, a five-kilometre run for students and a 10-kilometre race dedicated to corporate entities..
The Accra Marathon race made a triumphant return today following a landmark move by the First National Bank and the Dansoman Keep Fit Club (DKFC) who signed a momentous five-year partnership agreement to breathe life back into the prestigious event, which has been dormant for the past six years.
Source: Beatrice Laryea Graphic Sports News
11 November 2023: A former student of the University of Education, Winneba (UEW), Koogo Atia has won the men's category of the 42.2 kilometres race of the 2023 First National Bank (FNB) Accra Marathon held today, November 11.
In the female category, 18-year-old Portia Anaba from the T I Ahmaddiya Secondary School in Kumasi took the first position.
About 1,000 runners from across the country participated in the 42.2 kilometres race for professional athletes as well as 10 kilometres for school children.
Atia, who is currently a National Service Personnel at the Walewale Senior High School, clocked a time of 2:03:25 to emerge winner of the coveted competition which started at 6 am from the Regional Maritime University at Nungua through some demarcated streets in Accra to the Dansoman Keep Fit Club.
The 24-year-old Physical Education Instructor, who hails from the North East Region, precisely Sagadugu in Walewale, took the lead right after the blast of the whistle and further widened the gap at about 500 metres to Dansoman and kept the momentum for hours until he crossed the finished line at Dansoman Keep Fit Club.
For his reward, Atia took home GH₵20,000 as cash prize, laptops and souvenirs from sponsors. He was also rewarded with a fully paid trip to participate in an upcoming international marathon later next year.
"I knew I was going to win because I trained so hard for it. I trained so hard when I heard about this marathon. This is an economization of your pace so you need to train for it. Actually I have trained for more than a month for this competition so I had it in mind that by God's grace I would win," he told the Graphic Online in an interview.
Noah Wunboriche and Ishmael Fianoo took the second and third positions respectively and they also received cash prizes, laptops as well as souvenirs from the sponsors
Sheriffa Moro and Joyce Ayaba were second and third in that order, in the female category.
Several products from the sponsors were presented to the first 50 runners while other participants received certificates of participation.
The marathon was organised by the Dansoman Keep Fit Club with sponsorship from the First National Bank.It was supported by Hollard Insurance, Bel-Aqua, Yango and Dano Milk with the Graphic Communications Group Ltd and the Multimedia Group being media partners.
Source: Beatrice Laryea Graphic Sports News
11 November 2023:The Minister of Youth and Sports, Mustapha Yusif has hinted of plans to make the First National Bank-sponsored Accra Marathon a national event. He said the marathon was a testament to the spirit of endurance and unity in our communities hence making it a nationwide event would help to unearth more talents as well as grow the sport.
Mr Mustapha, who is also a Member of Parliament for Yagaba Kubore Constituency, was speaking at the closing ceremony of the marathon which started today, November 11, 2023, from the Regional Maritime University in Nungua and ended at the Dansoman Keep Fit Club.
"This event is about enthusiasm and discipline. Your determination shows the power of sports to bring our people together.
"The Ministry will collaborate with the Dansoman Keep Fit Club to make this event a national event," he said.
He commended the leadership of the Dansoman Keep Fit Club and the First National Bank as well as other sponsored for their diverse contributions to revive the completion which had been in hiatus for more than six years.
About 1,000 runners from across the country participated in the 42.2 kilometres race for professional athletes as well as 10 kilometres for school children.
At the end of the over five-hour race, 24-year-old Koogo Atia from Sagadugu in the North East Region won the men category of the 42.2 kilimotres race while Potia Anaba, a Form Two student of the T I Ahmadiyya SHS in Kumasi, won the women's event.
For their rewards, they each took home GH₵20,000 as cash prize, laptops and souvenirs from sponsors.
Source: Beatrice Laryea Graphic Sports News
Notice of Dormant Accounts held by First National Bank Ghana Limited - November 2023
In accordance with the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930), we hereby bring to the attention of the general public that we have published the list of customers with accounts at First National Bank Ghana that have not been operated for a minimum of five years and therefore remain dormant.
Customers have been given prior notice of this and they or their legal representatives are advised to contact the nearest First National Bank branch to reactivate their account within two weeks from the date of this publication.
Note that the unclaimed balances on dormant account(s) will be transferred to the Bank of Ghana in compliance with Act 930.
View list of dormant accounts.
One of the most important protections and a control against fraud is the addition of safekeeping from the investment portfolio. If necessary, investment policies should include a section regarding safekeeping and custody that defines how the holding institution should have its securities held by an independent third-party for safekeeping to minimize the risk of a fraudulent transaction.
Kofi Pianim, Head of Global Markets at First National Bank explained custody as when an investor - whether a retail investor, an employee pension fund, a mutual fund or any other kind of institutional investor invests in a financial asset such as an equity or debt security, they need someone to hold and safekeep the asset on its behalf. 'That is where a custodian comes in to receive any dividends or interest payments made by the company that issued the security; alert the investor of any votes or other actions the investor needs to take with respect to the security (such as responding to an offer by the issuer to exchange the security for another security)', Kofi said.
Custodians provide all of these custody services to investors by contracting with the investor either directly or with an agent of the investor, such as an investment manager. In short, a custodian provides custody and related services to investors-broadly characterized as the safekeeping and servicing of an investor's assets. They play a critical role in helping investors to build and maintain wealth. "Usually, if the investor wishes to sell the security or purchase another security, the custodian processes the transaction on the investor's behalf", affirmed Kofi.
Although custodians may have separate commercial or consumer lending relationships with certain custody clients, such lending relationships do not generally extend to the financing of clients' custodied investment positions through loans or long-dated credit facilities. "Generally, the only lending custodians engage in as principal as part of their custody services business involves the provision of short-term credit (generally intraday or overnight) to facilitate efficient settlement across different payment and settlement systems and time zones, cover overdrafts, facilitate client redemptions, enable the payment of management fees and other expenses, and allow their clients to manage liquidity" Kofi suggested
On whether the custodian faces credit, market, liquidity, and operational risk, Kofi emphasized that the nature of risk with custody and related activities in which custodians engage are presented often differently in scale from those presented by other banking activities. "At First National Bank. we have world-class and robust systems/platforms in place to provide quality services to our clients. These include our fast trade settlement, secure cash interface and easy-to-use self-service platform for clients to instruct electronically, which feeds into our processing system". First National Bank also offer Global Custody offering and efficient market information gathering.
"We leverage our expertise for custody and clearing solutions across our proprietary network to help grow our client business and investment through efficient market access" he ended.
While ChatGPT has created something of an Artificial Intelligence (AI) storm in recent months, AI is anything but a new concept. In fact, businesses have been using it, to a greater or lesser degree, for decades now, whether to automate basic processes, analyse datasets, or deliver digital customer support.
What ChatGPT has done, however, is raise awareness of the potential that AI has to add significant value to businesses of all shapes and sizes. Chief Information Officer at First National Bank, Samuel Dakurah explained that, as an AI language model trained to understand and respond to human language, ChatGPT has itself become a popular way for many businesses and employees to save time and improve efficiencies. "However, while there are many benefits to using ChatGPT, there are also a number of limitations, even risks, that businesses should keep in mind in order to ensure that they are indeed making the most of this exceptional technology" he said. Samuel shares some pros and cons for users of ChatGPT.
The first, and arguably most valuable, of these benefits is the opportunity that ChatGPT presents for businesses to save time when gathering knowledge or doing research. Instead of spending hours scouring the internet or consulting with expensive experts, businesses now have the option to simply ask ChatGPT for information on a particular topic and receive a response in a matter of seconds. This can be particularly helpful for small businesses or start-ups that may not have the financial or human resources at their disposal to conduct extensive research on their own. It can be a quick, cheap, and useful way to conduct market research, identify trends, and gather insights into customer behaviours.
However, it's important to be aware of the fact that the information ChatGPT provides is highly contextual. While ChatGPT can quickly identify trends and patterns, it is unlikely to be able to provide the same level of analysis as a human researcher. Therefore, businesses must balance the benefits of speed and efficiency with the need for accuracy and depth of analysis. "For example, if a business asks ChatGPT "What is the best way to win customers between income categories?" the response they will receive is likely to be very generic, without the addition of significant values or real strategic insights that they do not already have. The reason is simply that ChatGPT does not know any of the finer nuances about the business, or the geographic and demographic factors that may influence its marketing efforts. So, the response, while probably fairly accurate, will likely be far too broad to be useful", he cautioned.
The second benefit of ChatGPT is that it can help businesses improve efficiency by automating certain tasks. For example, ChatGPT may be useful in generating generic content for social media or marketing campaigns, thereby saving businesses time and resources. However, this content is once again going to be generic and may not capture the finer marketing requirements of the business. It is unlikely to be aligned with a business's brand or messaging and it may not always be able to capture the subtleties of the brand voice. As a result, businesses need to be careful when using ChatGPT to generate content and ensure that it aligns with their overall branding and messaging strategy.
The third business benefit of ChatGPT - and possibly the one that has the potential to be of highest value - is that the AI platform can serve as an objective sounding board for those looking to figure out whether they are asking the right questions about their business. By asking ChatGPT for information on a particular topic, and then critically assessing the responses they receive, businesses can gain valuable insights into whether they are actually asking the right questions or focusing on the right intelligence that will help them grow and prosper. "When asked the right questions, in the right way, ChatGPT may identify patterns and trends that would not be immediately apparent to human researchers. This can help businesses identify blind spots in their operations or generate new ideas for growth. This feature of ChatGPT can be particularly helpful for businesses that are just starting out, or those that are looking to pivot in a new direction based on market movements or competitor pressure", Samuel explained.
Of course, it's important to remember that ChatGPT's insights are only as good as the questions it is being asked. In other words, if a business is asking the wrong questions or focusing on the wrong information, ChatGPT may be unable to provide the insights they need. This means that any business wanting to derive worthwhile benefits from ChatGPT needs to be highly strategic in its use of the platform.
Ultimately, it is imperative that business users of ChatGPT keep in mind that it is a tool, not a solution. While it can undoubtedly assist with certain tasks, it's no substitute for human insight and creativity, and it should never be the sole source of business intelligence or market information. "As fantastic as ChatGPT may seem, an AI language model is not (yet) a substitute for a holistic business approach, built on relevant quantitative and qualitative data, and underpinned by deep experience and an integrated approach to understanding markets and customers" he concludes.
In Ghana, insurance is typically not considered a necessity, however, for people who take insurance policies, their sum insured (maximum amount paid out for claims) is largely based on their current circumstances. Sadly, after people take policies, they fail to increase their sum insured as their circumstances change.
Head of Retail Banking at First National Bank, Madam Akweley Laryea, recommends that as your financial circumstances change, it is essential to review the sum insured as it may no longer be sufficient to cover the needs of your family or dependents.
She highlights common situations that should encourage people to update the amount of coverage they are insured for.
"If you are unsure of the amount of life cover you need or whether it's the right time to update your policy, it is advisable to speak to your bank or financial services provider for guidance," concludes Akweley.
Encouraging your kids to save from a young age is important, as it sets them up for the future. Studies have indicated that in Ghana and most developing parts of the world, families feel that it's difficult to save as a result of low-income levels. With the banked population pegged at just 33%, we need to start helping our future generations understand the importance of saving and guide them in building healthy and solid relationships with money.
Conversations around saving and spending are crucial life skills, as they help shape children's attitudes about money from a young age.
"Children should start understanding the concept of money at a very young age. It's at this point that we need to start inculcating the value and importance of effective and creative money management in them," Akweley Laryea, Head of Retail Banking at First National Bank says.
"We could influence the way our children save or spend their money through ongoing conversations. These conversations should revolve around the concept of 'choice', by giving our children the option of spending versus saving their allowances or money and the potential impact of not saving for the future.
"One of the best ways of ensuring that your children are capable of saving is to let them take control of their savings journey. Using age-appropriate ways to teach saving and making it interactive will make it fun for them and help them develop a healthy relationship with money and savings. Guide them through the money management journey, starting with basic budgeting, helping them understand that saving is a need, not a want, and helping them track their progress monthly. This is one of the best ways to get them started on their savings journey and make them the next generation of money-savvy young adults."
Madam Laryea highlights a few ways that parents can sway the savings conversations with their children:
We've all been in those situations where we want to spend our hard-earned money on something nice. Teaching kids the value of saving from the onset involves distinguishing between needs and wants. Help them understand that needs include basic items like food, clothing, and stationery, and wants are those additional nice-to-haves like toys, bicycles, movie tickets, etc.
Conversations around needs and wants ought to be practical. Parents or elders can build a game around the concept by quizzing their kids at home or in an external environment and asking the question, "What is a need and want?"
There's no better way to get kids to do something than by challenging them. Have a conversation to understand what their ultimate savings goal is, whether it's to buy a new smart device or a toy car. Note the cost of the item and then highlight what they can get if and should they save for an additional 6-12-month period instead of going off to buy their desired object.
Just like a budget, help them map out their ideal savings plan, through a savings journal. Be creative, use a scrapbook, highlighters and pictures to map out their savings journey. In their plan highlight the:
Build a savings tracker that will help them monitor their savings. This tracker can be adapted to suit your child's savings goals:
A bank account or investment vehicle is a great way to get your children started on their financial journey. This will also help them understand the concept of finance, savings and investments; and will help in visualising their financial goal. You could look at opening a First National Bank, Future Forward account for your children, for day-to-day savings until they are 18 years old and can take over the account, or even a Fixed Deposit account which can help fund their education in the long-term.
"Savings is a common topic among all age groups. The reality is that no matter how old you are, you still need a savings plan that will get you through those tough times," Madam Laryea says. "It's easy to put savings off till later, but in reality, an adequate savings plan will help you in the long term."
Dreaming of becoming an entrepreneur requires that you unleash the next big idea on the world. Sometimes, after trying and failing to start your own business you may have been forced down a road you didn't imagine is for you: full-time employment. You may even find yourself asking, is this the end of your journey to become the next Kate Quartey-Papafio or Kevin Okyere? Head of Human Resource at First National Bank, Ernestina Danquah asserts, that it is not necessarily the case.
"If you keep your eyes open and treat a job as a learning experience, there's a huge amount of value to be gained for a budding entrepreneur in the formal work environment." says Ernestina. She shares some of the wins and learnings you will gain if you positively embrace the state of being an employee of someone's business in preparation for yours.
The employee experience
When you build your own business your success or otherwise is going to be determined by the people you have around you. You're going to need employees and having been one yourself will give you valuable insight into creating an environment which gets the most out of your people. You'll also learn what good management - and even more importantly - bad people management pitfalls to avoid.
The boring (but important) stuff
You might be fixated on the next disruptive innovation, but growing a business involves a lot of less-exciting work. For example, putting in place processes and frameworks. These are important, but they can also be complicated. Knowing what formal structures need to be in place can help your future business survive.
Working in a successful business can teach you the importance of (for example) keeping separate bank accounts, of having governance and admin functions, of keeping records and updating documents, or of using payroll, accounting, and other software systems. Making a note of systems that could be applicable to your own business will be a huge shortcut when the time comes to grow and scale.
You'll also learn how to approach risk - not in the entrepreneurial sense of being bold, going out on a limb and not being afraid to fail, but in the sense of protecting what you've worked hard to build by taking out effective insurance to mitigate risk, understanding the importance of registering IP, etc.
The value of a team
As tempting as it is to think that you can do everything yourself, being in a job can teach you about the importance of having a team of specialists focused on a common goal. At some stage in your entrepreneurial journey, you're going to need to surround yourself with a team of experts, and the sooner you realise exactly where your strengths are, and where you need support, the better. Pay attention to the work everyone is doing and what makes them good or bad at their job. Notice how bigger organisations are structured, and how it might apply to your future business.
A financial leg up
A job is also a useful source of something that's in very short supply when you're starting a business: money. Not only does it allow you to save directly to invest in your dream business but leaning on your personal income could give you an ability to exhibit repayment ability for business funding ; not to mention the ability to build personal assets that may one day come in handy for the business.
"Aspiring entrepreneurs should not frown upon the valuable skills one builds when they themselves are in formal employment. So, even if your own business is taking time to take off, don't begrudge that first job. Embrace it." Concludes Ernestina.
First National Bank is proud to announce its association with the Accra Marathon as headline sponsor for five years.
This follows an agreement with the Dansoman Keep Fit Club, organizers of the marathon.
The new sponsorship package paves the way for the reactivation of one of the most iconic sporting events on the Ghanaian sporting calendar after a six-year hiatus.
The First National Bank Accra Marathon is yet another demonstration of the bank's commitment to promoting sports, fitness, and nurturing a communal spirit of togetherness.
The partnership agreement was signed in a brief ceremony at First National Bank's head office at Accra Financial Center.
"Our partnership for the Accra Marathon reinforces our commitment to supporting initiatives that positively impact the communities we serve," said Chief Executive Officer of First National Bank Ghana, Warren Adams.
The Chairman of the Dansoman Keep Fit Club, Benjamin Ahulu, thanked First National Bank for the sponsorship package, saying: "We are thrilled to have First National Bank come onboard as the headline sponsor of the Accra Marathon. This partnership aligns perfectly with our mission to promote community well-being and underscores our commitment to fostering a healthier and more active lifestyle for everyone. We look forward to an incredible marathon event and the positive impact it will have on our city."
He explained that as the title sponsor, the bank has the unique naming rights of the marathon, now known as the First National Bank Accra Marathon.
This year's marathon is scheduled to take place in Accra on Saturday, November 11 2023 with four different races or competitions:
1. 42.2 kilometre run for professional athletes.
2. 5 kilometre run for Junior high school students.
3. 10 kilometre run for corporate bodies.
In addition to the sponsorship, First National Bank will actively participate in various pre-marathon events, kitting and branding as well as drive employee and customer participation in all three events.
The First National Bank Accra Marathon, under its renewed identity, promises to be a memorable event for all participants and spectators.
