Private Sector Decries High Cost Of Credit In Ghana

Players within the private sector have bemoaned the high cost of doing business in Ghana due to the difficulty in accessing funds.

According to them, local businesses continue to post losses due to high interest rate which is now hovering around 35% to 40%.

Speaking in an interview with Citi Business News at the sidelines of the Association of Chartered Certified Accountants (ACCA) grande ball, the immediate past President of the Ghana Chamber of Commerce and Industry, Dr Seth Adjei Baah said lack of access to cheaper credit is stifling the development of the private sector in Ghana.

“You cannot give what you do not have. Most of the banks don't have the capacity to give the money people need to expand their businesses. So when it happens, it is difficult”, he said.

Pointing out some activities that have created more challenges, Dr. Baah criticised the decision of government to always resort to the domestic market for loan, adding that it denies the private sector the ability to access funds.

''It is difficult to access the money. Government is competing with the business man for the money. And the banks will always prefer to deal with government rather than the businessman who has a lot of risks in this competitive industry''.

He appealed to government to fix the economy to create an enabling environment for the private sector to thrive.

-citifmonline