Access to credit remains major challenge despite lower interest rates – GNCCI
Mr Stephane Miezan, the president of the Ghana National Chamber of Commerce and Industry (GNCCI), has said that access to affordable credit remains a major challenge confronting Ghanaian businesses despite the decline in interest rates. The post Access to credit remains major challenge despite lower interest rates – GNCCI appeared first on Ghana Business News .
Stephane Miezan, president of the Ghana National Chamber of Commerce and Industry (GNCCI), has highlighted that obtaining affordable credit remains a significant hurdle for Ghanaian businesses, even with lower interest rates. Despite government and Bank of Ghana efforts to reduce interest rates, many businesses continue to grapple with accessing financing.
Mr. Miezan pointed out that financial institutions often prefer investing in government securities over lending to private businesses due to the perceived risks associated with the latter.
Speaking at a media forum hosted by the Ghana Ports and Harbours Authority (GPHA), he emphasized that the issue extends beyond the cost of credit to the conditions attached to obtaining financing. "If something is affordable and you still cannot access it, it is equally expensive," he noted. Therefore, Mr. Miezan advocated for stronger credit guarantee schemes to mitigate the risks banks face when lending to businesses.
These schemes could incentivize banks to provide financing, as part of the lending risk would be covered.
Emmanuel Doni-Kwame, Secretary-General of the International Chamber of Commerce Ghana, echoed similar concerns. He stressed the need for businesses to enhance their financial records and transparency to improve their prospects for accessing credit. Initiatives that assist businesses in maintaining accurate records and demonstrating financial transparency can make financial institutions more willing to lend.
Access to finance is particularly crucial for businesses aiming to boost production, engage in regional trade, and expand export capacity, according to Mr. Doni-Kwame.
He added that the International Chamber of Commerce Ghana is working on initiatives to bolster businesses' capacity to participate in intra-African trade and connect them with the right financial institutions. He stressed that financing must not only be affordable but also accessible for businesses to expand and generate employment.
Written by urgent.news from Ghana Business News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
