Accra: Mr Stephane Miezan, the president of the Ghana National Chamber of Commerce and Industry (GNCCI), has highlighted that access to affordable credit continues to be a significant challenge for Ghanaian businesses, despite a reduction in interest rates. Mr Miezan noted that while efforts by the government and the Bank of Ghana have led to lower interest rates, many businesses still face difficulties in obtaining necessary financing.
According to Ghana News Agency, financial institutions tend to prefer investing in government securities over lending to private businesses due to the perceived risks involved in private-sector lending. Speaking at a media forum organized by the Ghana Ports and Harbours Authority (GPHA), Mr Miezan emphasized that the issue is not just about the cost of credit but also the conditions attached to accessing such financing. He remarked, "If something is affordable and you still cannot access it, it is equally expensive."
To address these challenges, Mr Miezan called for the implementation of stronger credit guarantee schemes that would mitigate the risks financial institutions face when lending to businesses. He explained that such schemes could incentivize banks to extend credit to businesses by covering part of the lending risk.
Mr Emmanuel Doni-Kwame, Secretary-General of the International Chamber of Commerce Ghana, also stressed the importance of businesses enhancing their financial records and transparency. He suggested that initiatives aimed at helping businesses maintain accurate records and demonstrate financial transparency could increase the willingness of financial institutions to lend to them. Access to finance is crucial for businesses aiming to expand production, engage in regional trade, and develop export capacities.
Mr Doni-Kwame further stated that the International Chamber of Commerce Ghana is actively working on initiatives to build the capacity of businesses to participate in intra-African trade and connect them with relevant financial institutions. He emphasized that for the private sector to expand and create employment, financing must be both affordable and accessible.