Cryptocurrency (Crypto) is a form of digital currency that uses cryptographic techniques to secure the transmission and storage of data and to control the creation of new units. Unlike physical cash, cryptocurrencies exist solely in digital form.

Owning Crypto means holding a private key that allows you to transfer units from one party to another across a decentralized network – one that does not rely on a central authority or intermediary and is maintained by a distributed community. Every transaction is recorded and updated on a blockchain, ensuring accuracy and bolstering trust among participants.

Since the launch of Bitcoin (the first and most widely used cryptocurrency) in 2009, thousands of cryptocurrencies have emerged, each offering different features and use cases. While cryptocurrencies have existed for over a decade, the broader applications of blockchain technology, especially in financial services, are still evolving, with significant innovation and adoption expected in the years ahead.

Benefits of Cryptocurrency

1.High growth potential – Cryptocurrencies have historically offered investors significantly higher returns compared to traditional investments, often over shorter timeframes. For example, Bitcoin rose from US$0.90 in 2010 to around US$105,816 by mid-June 2025.

2.Decentralization and Financial Independence – Unlike traditional financial systems, cryptocurrencies are not controlled by any single government or institution. This offers greater autonomy, enabling individuals to manage wealth, conduct transactions, and access services without centralized intermediaries.

3.Enhanced Transparency – Crypto transactions are recorded on a public blockchain ledger, strengthening network security and trust. This transparency gives participants real-time access to accurate information and helps enhance confidence in the system.

Risks Associated With Cryptocurrency

1.Price Volatility – Cryptocurrency prices can fluctuate rapidly and unpredictably due to speculative trading and pump-and-dump schemes. Because returns are driven by demand and supply dynamics, they are often uncertain and cannot be guaranteed.

2.Cyberattacks – Cryptocurrency hackers may steal private keys and gain access to users’ assets, often resulting in permanent and usually irrecoverable losses. High-profile incidents include the 2018 hacks of Coincheck and BitGrail, which led to losses of US$534 million and US$195 million, respectively.

3.Lack of Consumer Protection – Unlike traditional financial systems, cryptocurrencies typically lack regulatory oversight and formal consumer safeguards. If a Crypto trading platform (CTP) or wallet provider fails or goes bankrupt, investors may have no legal recourse to recover their funds.

On March 31, 2025, the Bank of Ghana (BoG) made a surprising move: it increased the Monetary Policy Rate (MPR) from 27% to 28%. This decision was meant to “re-anchor the disinflationary process,” even though inflation had been falling, making most market watchers to expect the central bank to hold or even cut rates. At the most recent 124th Monetary Policy Committee (MPC) meetings held from 21 to 23 May 2025, the Committee, by a unanimous decision, maintained the Monetary Policy Rate (MPR) at 28%, amidst falling inflation as well as falling interest rates on the short-term bill. Another surprising move.

In an increasingly unpredictable world, where trade agreements can shift overnight and global powerhouses clash over tariffs, investors face a challenging question: Should I stay invested offshore, or pull back?

Free Trade vs. Trade Wars

Free trade, at its core, allows nations to exchange goods and services without restrictions. It fuels innovation, job creation, and consumer choice. However, when political mistrust rises, countries often retreat into tariff barriers, triggering trade wars.

The current global trade war, spearheaded by the U.S. under President Trump, has significantly disrupted global markets; there are tariffs of 10% or more imposed on imports from over 50 countries, U.S.–China tensions have resurfaced, despite temporary tariff cuts, supply chains are being rerouted, with Chinese goods diverted through third countries like Vietnam and Mexico.

Consumer backlash is growing — more than 50% of EU consumers are ready to boycott U.S. products.

The result? Higher costs for businesses, lower investor confidence, and increased volatility in global financial markets.

What This Means for Your Exchange Traded Funds (ETFs)

If you’re holding U.S.-listed ETFs, here’s how the trade war may affect your portfolio:

1. Volatility Is the New Normal

Sectors exposed to China (especially tech and industrials) are bearing the brunt of the ongoing tariff wars. ETFs tracking the S&P 500 or specific sectors may experience sharp swings.

2. Currency Risk Cuts Both Ways

The cedi-dollar relationship matters. If the cedi weakens, your USD-denominated ETF gains may look better in local currency. If the dollar drops under global pressure, returns may diminish.

3. Dividends Could Dip

With corporate profits under pressure, dividend-paying ETFs could see reduced payouts. This affects income-focused investors.

4. A Broader Economic Slowdown

If global economic growth slows down, even companies not directly involved in trade may feel the pinch. That means slower earnings growth — and a slower recovery for markets.

What Should Investors in Ghana Do?

Adopt a calm and disciplined approach as stated below;

Stay Invested, Think Long-Term

Trade wars are temporary. Quality ETFs with diversified holdings are built to withstand such shocks. Also, staying invested helps investors to benefit from the long-term growth of global markets.

Don’t Miss Dividends

Many ETFs pay regular income – dividends. Selling off now could mean missing out on dividend income — especially when ETF prices are lower and reinvestment opportunities are ripe.

Use Volatility to Your Advantage

Times like these offer entry points for long-term investors. If you have a solid strategy, use the dips to accumulate assets gradually. Selling now locks in losses — staying put allows your investments to recover. That is, investors can buy quality assets at discounted prices and benefit from future rebounds.

Embrace Dollar-Cost Averaging

Dollar-cost averaging is a simple tool that an investor can use to build savings and wealth over the long term. It involves investing the same amount of money in a target security at regular intervals over a certain period of time, regardless of price. By using dollar-cost averaging, investors may lower their average cost per share and reduce the impact of volatility on the their portfolios.

In simple terms, don’t let short-term headlines derail your long-term goals. The ETFs that have been chosen by Bora Capital for clients offer quality, diversification, and resilience. Each of these has weathered events like the Great Recession, COVID-19, and now the Trump Tariffs — and still delivered recovery and growth. Thus, continue your strategy, rebalance if needed, and use dollar-cost averaging to take advantage of market downturns.

As Warren Buffet puts it: “Be fearful when others are greedy and greedy when others are fearful”.

As the world grapples with climate change, resource depletion, and social inequality, the concept of sustainable investing has emerged as a driving force in shaping future economies. This growing trend isn’t just beneficial for the environment or society—it is also essential for the sustained economic growth of both developed and emerging economies and Ghana’s economy is no exception.

What is Sustainable Investing?

Sustainable Investing, also known as Socially responsible investing (SRI), refers to the integration of environmental, social, and governance (ESG) factors into financial decisions, moving beyond the sole focus of profit maximization to also prioritize long-term societal impact. This investment approach aligns with the growing demand for responsible corporate behaviour, and economic activities that mitigate environmental harm, promote social good and enforce strong governance practices all while being profitable.

Ghana’s economy, like many other emerging markets, faces challenges such as climate change and infrastructure gaps. However, these challenges also create opportunities for sustainable, impactful investments. With a growing population and rising demand for energy, food, and infrastructure, the country remains an attractive destination for investors seeking both returns and development impact.

How does sustainable investment drive economic growth?

1.Creating New Markets and Industries – Sustainable investment supports the growth of green sectors like renewable energy, sustainable agriculture, and eco-friendly infrastructure, helping economies diversify and reduce carbon dependence. In Ghana, it can enhance food security, boost efficiency, and combat climate change through technologies like precision farming and organic inputs, driving both productivity and long-term gains.

2.Driving Innovation and Efficiency – ESG-focused investments hold firms accountable for their environmental and social practices, encouraging innovation, efficiency, and sustainable supply chain. The push for sustainability encourages the adoption of technologies that cut waste, improve energy use, and build sustainable supply chains, lowering operational costs and supporting long-term growth. This reduces costs, boosts long-term growth, and makes companies more attractive to investors, creating a cycle of improved productivity, competitiveness, and economic development.

3.Encouraging Inclusivity and Poverty Reduction – Sustainable investment promotes inclusive growth by funding projects that reduce social inequalities—such as housing, healthcare, education, and microfinance—leading to fairer wealth distribution, greater access to resources, and wider economic participation.

4.Attracting Foreign Investment – Countries that adopt ESG principles and climate-friendly policies attract more foreign direct investment, especially from global investors seeking sustainable opportunities. This capital inflow supports economic development by creating jobs, building new industries, and driving long-term growth, particularly in emerging markets investing in renewable energy.

Challenges to Sustainable Investing

While sustainable investing offers enormous potential, there are challenges to be addressed. Some of these challenges include a lack of data availability and transparency on ESG factors, making it difficult for investors to assess the true impact of their investments. Additionally, there can be a lack of consensus on what qualifies as a “sustainable” investment which could lead to greenwashing- where companies claim to be more sustainable than they truly are.

However, with growing awareness, stronger regulatory frameworks, and technological advancements, these challenges are gradually being addressed. Governments, businesses, and investors must continue to work together to establish clear standards and reporting mechanisms to ensure that sustainable investment fulfils its promise of driving economic growth and societal progress.

Sustainable investment is a key driver of economic growth. By funding businesses that prioritize ESG principles, it builds resilient economies ready for global challenges. Harvard research shows companies with strong sustainability practices outperform peers over time, benefiting from better reputations and stronger customer loyalty. As Ghana embraces sustainability, it offers investors attractive opportunities for both returns and positive impact. Integrating ESG into its economy can accelerate growth and create a more equitable future.

What are commodities?

Commodities are raw materials that can be bought and sold, including physical goods, energy resources, agricultural products, and livestock. Unlike stocks and bonds, commodities are tangible assets whose value can be influenced by factors such as the weather, geopolitical events and broader macroeconomic trends.

Why are commodities important as an asset class?

1.Diversification Benefits – Commodities tend to have a low or negative correlation with traditional asset classes. This means that when stocks are underperforming, commodities might perform well. Diversifying across asset classes helps to reduce the overall risk exposure while potentially enhancing returns.

2.Inflation Hedge- Commodities are among the few asset classes that often gain value during periods of rising inflation. For example, gold and oil have historically been considered reliable hedges during times of economic uncertainty or inflation. As inflation rises, the cost of goods and services increases, often making commodities more valuable.

3.Returns During Market Volatility- Commodities can perform well during periods of market volatility or geopolitical instability. For instance, in times of oil supply shocks or geopolitical tensions in major energy-producing regions, the prices of crude oil and natural gas often spike. Investors exposed to commodities during these times can benefit from such price surges.

How to invest in Commodities

1.Physical Ownership – This involves directly purchasing commodities like gold bars or agricultural produce. However, this may pose challenges for most individual investors due to issues related to storage, insurance and liquidity.

2.Futures Contracts – A more common approach is through commodity futures, where investors agree to buy or sell a commodity at a specific price on a future date. Futures markets are highly liquid but can be risky due to the leverage involved.

3.Exchange- Traded Funds (ETFs) – ETFs offer a convenient way to gain exposure to a broad basket of commodities without needing to trade futures directly. For example, an investor could buy into a gold ETF or an energy- focused ETF, depending on their preferences.

4.Commodities Stocks and Funds – Investors can also gain exposure by investing in companies involved in producing or extracting commodities, such as mining firms or oil companies.

Risks Associated With Commodity Investments

1.Price Volatility – Commodity prices can be highly volatile due to factors such as weather conditions, geopolitical events, and global demand-supply imbalances. This volatility poses a challenge for investors, as it can impact profit margins and lead to unpredictable investment outcomes.

2.Leverage Risk in Futures Trading – Futures contracts often involve leverage, allowing investors to control large amounts of a commodity with a relatively small initial investment. While leverage can  amplify gains, it also magnifies losses as investors are tasked with paying interest on the leveraged amount.

3.Geopolitical Risk – Commodities like oil and gas are particularly sensitive to geopolitical tensions. Disruptions in major supply regions can cause sharp price movements. For example, instability in the Middle East has historically resulted in spikes in oil prices, impacting global energy markets.

4.Non-Income-Generating Asset Class – Unlike many other asset classes, commodities do not generate income or yield, such as interest or dividends. Instead, their returns are primarily driven by fluctuations in demand and supply dynamics, making their performance inherently more volatile and dependent on market conditions.

For investors aiming to build resilient and diversified portfolios, commodities can be considered a worthwhile component. Whether through physical holdings, futures contracts, ETFs, or shares of commodity-related companies, exposure to this asset class may offer long-term value and protection against economic uncertainty.

Investing in commodities isn’t just about capitalizing on short-term market trends; it is also about recognizing the long-term value of the raw materials that power economies around the world.

In the evolving landscape of investment, Exchange-Traded Funds (ETFs) have emerged as a powerful tool for investors seeking diversification, cost-efficiency, and flexibility. Over the past few decades, ETFs have transformed the way individuals and institutions approach portfolio management, offering an accessible and innovative means to participate in various markets. This overview delves into the fundamentals of ETFs, exploring their structure, benefits, and the reasons behind their surging popularity among investors worldwide. Whether you’re a seasoned investor or just starting out, understanding ETFs is crucial for making informed decisions and optimizing your investment strategy.

The Structure of ETFs

ETFs are investment funds that trade on stock exchanges, similar to individual stocks or shares. They hold assets such as stocks, commodities, or bonds and many others. ETFs are structured as open-ended funds, meaning they can issue and redeem shares continuously. They are typically designed to track the performance of a specific index such as the S&P 500, particular sector, commodity, or asset class, while others have specific investment strategies. They are created such that investors exchange baskets of underlying assets for ETF shares.