By Morkporkpor Anku, GNA
Accra, Feb. 19, GNA – The Ghana National Chamber of Commerce and Industry (GNCCI) and the Ghana Association of Banks (GAB) have pledged closer collaboration to improve access to credit for the private sector, following the recent reduction in the policy rate by the Bank of Ghana.
The engagement, held in Accra, focused on policy rate trends, credit accessibility, and structural challenges affecting lending to businesses.
Mr Stephane Miezan, the President of GNCCI, welcomed the decline in the reference rate, describing it as a positive response to sustained advocacy by the Chamber.
He, however, stressed that lower interest rates alone would not resolve the challenges confronting businesses if access to financing remained constrained.
“If money becomes cheaper and businesses cannot access it, then it is equally expensive,” he said, adding that the Chamber could only address the issue effectively through engagement with the umbrella body of banks rather than individual institutions.
Members of the Chamber from industry, trade and commerce shared their experiences with the bankers to enable them to appreciate the practical difficulties businesses encounter in securing loans.
Mr Miezan acknowledged that high default rates and regulatory requirements also posed challenges to banks, revealing that Ghana’s non-performing loan (NPL) ratio stood at about 18 per cent, which he described as significant.
The GNCCI President said the Chamber would intensify education among its members to promote responsible borrowing and compliance with loan conditions to help reduce default rates.
Other areas focused are high collateral requirements, prolonged credit approval periods (sometimes 15–18 months), inexperienced credit officers, delays caused by risk assessment processes, constantly changing documentation requirements and high interest rates.
Mr John Awuah, the Chief Executive Officer of the Ghana Association of Banks, described the meeting as fruitful and underscored the need for improved communication between banks and the business community.
He explained that certain lending requirements, including collateral coverage of at least 120 per cent in some cases, were regulatory obligations rather than arbitrary demands by banks.
He said banks lent depositors’ funds and must, therefore, ensure prudent risk management to safeguard those resources.
Mr Awuah expressed concern over the high NPL ratio Ghana recorded in the sub-region, attributing it to weak credit culture and widespread defaults across households and businesses.
He called for stronger collaboration among key stakeholders, including regulators, the judiciary and other state institutions, to strengthen the credit ecosystem and improve recovery processes.
The Association would enhance training for bank staff, improve information sharing, and explore alternative funding sources, including concessional financing for sectors such as renewable energy, the CEO said.
Both parties agreed that beyond policy rate reductions, sustained dialogue, improved credit discipline and institutional coordination were critical to making financing more accessible and affordable for Ghana’s private sector.
GNA
Edited by Agnes Boye-Doe