The Ghana Chamber of Younger Entrepreneurs has described lending charges to small and medium enterprises (SMEs) as daunting and one which stifles progress.
The chamber’s remark follows a publication by the Financial institution of Ghana, stating that industrial banks supplied loans at annualized Share charges from 17% to as excessive as 45% on the finish of June 2025.
Sharing his feedback with JoyBusiness, Sherif Ghali, Chief Govt of the chamber referred to as for a discount of the charges to make Ghanaian companies as aggressive as its friends within the sub-region.
“For me it’s so excessive and excessive borrowing capital eats into working capital, suppressing growth, particularly the individuals I lead who’re younger. If the primary choice to get funding are conventional banks and they’re providing charges this excessive, it isn’t good”, he stated.
“This doesn’t auger effectively for encouraging an entrepreneurial financial system.” He added, emphasizing his frustration.
He added {that a} complete credit score system will likely be ultimate to help small and medium enterprises within the nation. Citing the necessity for long run credit score services, Mr. Ghali referred to as for focused insurance policies, together with sturdy threat evaluation regimes and digital operational modules to reinforce entry to credit score.
“The individuals whom I lead are younger individuals, younger individuals and a few of them can’t go to the financial institution to lift credit score services or capital. Ghana’s price just isn’t wholesome for growth and commerce. We can’t compete. This can be a name for BoG and authorities to look into the enforceability of lending charges and guarantee lowered lending charges.”
BoG APR Publication
In a report, Financial institution of Ghana revealed that Republic Financial institution and Financial institution of Africa present the bottom rates of interest on loans for people.
In its Annualized Share Charges (APR) ending June 2025, the Financial institution of Ghana report captured all 23 banks within the nation.
The report confirmed that Financial institution of Africa supplied an rate of interest of 20.22 % for its one-year tenor whereas Republic Financial institution supplied an rate of interest of 21.43 % for its three-year interval.
The APR displays the true price of a mortgage that financial brokers are confronted with once they undergo an approval course of to safe a mortgage facility. It includes the Ghana Reference Fee, financial institution particular risk-premia and different bank-specific prices.
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