By Laudia Anyorkor Nunoo
Tema, Sept. 01, GNA — 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.
Mr Miezan said although efforts by the government and the Bank of Ghana had contributed to a reduction in interest rates, many businesses continued to struggle to access available financing.
According to him, financial institutions were often more comfortable investing in government securities than lending to private businesses because of perceived risks associated with private-sector lending.
Speaking at a media forum powered by the Ghana Ports and Harbours Authority (GPHA), he said the challenge was not only the cost of credit but also the conditions attached to accessing financing.
“If something is affordable and you still cannot access it, it is equally expensive,” he said.
Mr Miezan therefore called for stronger credit guarantee schemes to reduce the risks faced by financial institutions when lending to businesses.
He explained that such schemes could encourage banks to provide financing to businesses because part of the lending risk would be covered.
Mr Emmanuel Doni-Kwame, Secretary-General of the International Chamber of Commerce Ghana, said businesses also needed to strengthen their financial records and transparency to improve their ability to access credit.
Mr Doni-Kwame said initiatives that helped businesses maintain proper records and demonstrate financial transparency could make financial institutions more comfortable lending to them.
He added that access to finance was particularly important for businesses seeking to expand production, participate in regional trade and develop export capacity.
He said the International Chamber of Commerce Ghana was working on initiatives to build the capacity of businesses to participate in intra-African trade and connect them with relevant financial institutions.
He stated that the private sector needed financing that was not only affordable but also accessible to enable businesses to expand and create employment.
GNA
Edited by Kenneth Odeng Adade
Reporter: Laudia Anyorkor Nunoo, GNA
Email: [email protected]