Promotion of private equity necessary to reduce borrowing - Spio Garbrah

Trade and Industry Minister, Ekow Spio Garbrah, has said the involvement of private sector equity in infrastructural development was necessary if the country desires to reduce borrowing.  

He said governments over the years have chosen to borrow because there are many banks around the world that are willing to give out loans – when they could have involved the private sector.

Speaking at this year's Ghana Economic Outlook and Business Strategy Forum in Accra, Mr Garbrah said “one of the challenges we have had as a country is that for many years we have chosen to borrow and borrow simply because there are many banks around the world that are willing to give you a loan if you are credit worthy.

“But the fact that a bank wants to give you a loan does not mean that you cannot and should not explore the equity side,” he continued.

He noted that most projects will work better when there is equity as well as loans to support them.

Mr Garbrah said the theme for the conference 'Diversifying Ghana's economy through sustained export trade' speaks to the need to give life to the sector and help identify and address challenges plagued with it.

He was hopeful that the forum will attempt a candid appraisal of the country's current export trade so as to enable stakeholders have a better understanding of the real challenges in the sector.

He said government has succeeded in laying a solid foundation by formulating and implementing policies and programmes which have significantly transformed the economic landscape of the country for the private sector to thrive.

The Minister is optimistic that at the end of the forum more private businesses will be willing to invest more into the country and assist local manufacturers to improve upon export trade.

The one day forum which is being held at the Best Western Premier Hotel will in the end hope to create a conducive forum where players in the productive sector could gather together with policy makers to address the common challenges of giving life to the productive sector.

It will also form a platform where local manufacturers and investors interact with potential foreign partners for mutual benefits.