Accra:Ghana risks failing to maximize opportunities under the African Continental Free Trade Area (AfCFTA) if women and young traders cannot access affordable financing, warns the Head of Marketing at the Ghana National Chamber of Commerce and Industry (GNCCI), Grace Dzeble.
According to Ghana Web, Dzeble highlighted the necessity for financial support to enable traders to expand their businesses, increase their stock, and compete in larger markets across Africa. She pointed out that high interest rates continue to make borrowing difficult, which could hinder Ghana from benefiting from the AfCFTA.
Dzeble emphasized the importance of investing in Ghana's trading community, particularly women, who constitute over 40% of the country's small and medium-sized enterprise (SME) sector. Access to affordable credit is deemed crucial for the growth and competitiveness of these businesses.
She identified that the main challenge lies not in the availability of funds within the banking system but in the difficulty traders face in securing loans at affordable interest rates. Despite the availability of funds at commercial banks, the accessibility remains problematic due to high borrowing costs.
Dzeble urged Development Bank Ghana to ensure its participating financial institutions provide loans through development-financing arrangements instead of relying solely on conventional commercial lending products. She explained that development financing could offer more suitable repayment terms, allowing women and young entrepreneurs ample time to grow their businesses before repaying loans.
Without affordable financing, many women traders could struggle to expand their operations and compete effectively in regional markets, potentially limiting Ghana's ability to fully leverage the benefits of AfCFTA.