Ghanaian Investors’ Preference for High-Risk Investments Decline – KPMG Survey Reveals
Preference for higher-risk investments such as stocks and bonds has been on the decline with 19% and 9% of customers investing in them, notes the 2024 KPMG West Africa Banking Industry Customer Experience Survey.
Per the report, this is due to the fact that banking customers are increasingly shifting toward low-risk investment options amid inflationary pressures and currency depreciation.
The survey by KPMG reveals that 39% of customers prefer treasury bills as a secure investment choice, while 25% opt for fixed-term deposits.
Another 23% of banking customers also prefer mutual fund investments. Mutual
Highlighting generational differences in investment behavior, the KPMG report revealed that individuals over 60 are increasingly investing in treasury bills to preserve wealth.
Meanwhile, millennials (ages 26-41) are investing less, with the percentage of non-investors rising from 17% in 2023 to 32% in 2024, due to financial pressures such as rent and family obligations.
In contrast, Gen Z investors are demonstrating stronger financial discipline, with 13% saving between 21% and 40% of their monthly income, indicating a growing culture of savings among younger investors.
Beyond traditional investments, Ghanaians are also prioritizing personal development and family welfare as 24% of Ghanaians are investing in skill acquisition and business ventures, reflecting a drive for career advancement and financial independence.
Another 24% of the population is allocating funds to education, healthcare, and family needs, reinforcing the significance of household financial security.
Also, some 22% of Ghanaians are focusing on wealth creation through investments in property sales and business expansion.
While 34% express openness to higher-risk investments, knowledge gaps remain a significant barrier to diversification.
The report emphasizes the need for banks to offer tailored financial literacy programs and advisory services to help customers explore alternative investments, such as real estate and commodities.
