The 2024 KPMG Customer Experience Survey has shed light on the investment preferences of Ghanaians, revealing a strong inclination towards low- and medium-risk financial instruments as individuals navigate economic uncertainties in pursuit of financial security and independence.

Cautious investment approach

According to the report, treasury bills remain the most popular investment option, attracting 39 percent of respondents due to their low-risk nature and guaranteed returns. Fixed or term deposits follow closely at 25 percent, further highlighting the conservative investment culture among many Ghanaians who prioritise stability over high-yield but volatile alternatives.

Emerging diversification trends

Despite the preference for safer options, the report indicates a gradual diversification in investment portfolios. Mutual funds, chosen by 23 percent of respondents, are gaining traction as a medium-risk investment with balanced returns. Additionally, commodities such as precious metals and agricultural products accounted for 20 percent, demonstrating a growing appetite for alternative investments as a hedge against inflation and economic instability.

However, higher-risk assets such as stocks (19 percent) and bonds (nine percent) remain underutilised, reflecting a general lack of confidence in these instruments. The report emphasises the need for banks and financial institutions to bridge knowledge gaps through education and tailored solutions to encourage broader participation in diversified investment options.

A willingness to take risks

Despite prevailing caution, the survey reveals that 34% of respondents are willing to take risks with their investments, signalling an underlying aspiration for wealth creation and financial independence. This trend is particularly pronounced among younger and middle-aged demographics, who are increasingly looking beyond traditional savings towards higher-yielding investment opportunities.

Ghanaians are primarily investing in treasury bills, fixed or term deposits, mutual funds, commodities such as precious metals and agricultural products, stocks, and bonds. Additionally, many are directing their funds toward skills acquisition and business ventures, family welfare including education and healthcare, and wealth generation through property sales.

Role of financial institutions

As Ghana’s investment landscape evolves, financial institutions have a crucial role to play in fostering investor confidence. The report underscores the importance of tailored financial education, improved access to investment advisory services, and the development of user-friendly platforms to support informed decision-making.

With an increasing number of Ghanaians seeking financial independence through strategic investments, the onus is on banks and financial service providers to create opportunities that align with the shifting investment preferences of the population. By doing so, they can help unlock new avenues for wealth creation while reinforcing financial stability across the country.

The sample size for the 2024 KPMG West Africa Banking Industry Customer Experience Survey included 8,300 retail banking customers, 479 corporate banking customers, and 1,245 SME banking customers across the 16 regions of Ghana