Kwahu Forum urges banks to lower interest rates for businesses

Participants at the second Kwahu Business Forum have called on financial institutions to lower interest rates and ease collateral demands on loans.

The majority, comprising entrepreneurs and business owners, argued that high interest rates and excessive collateral requirements prevent access to financial assistance and hindered business growth.

The remarks were shared during a Q&A session at the Business Forum, which focused on the theme “The Future of Business: The Role of the Financial Sector.”

They raised the concerns during a question-and-answer session at the forum, which focused on the theme “The Future of Business: The Role of the Financial Sector,” held at the Mpraeso Social Centre in the Kwahu South Municipality.

President John Dramani Mahama, together with Mr. Julius Debrah, Chief of Staff and other government officials opened the event, which brought together financial institutions, business leaders, and entrepreneurs to discuss strategies for the growth of the sector.

Mr. Eric Kwaku Boateng, President of the Ghana Automobile Dealers Association, said that high interest rates on loans deterred businesses from accessing facilities to support their ventures.

He noted that most entrepreneurs failed to meet banks’ collateral demands, leading to business collapse, and urged banks to revise their policies to support businesses.

Mr. Sampson Asaki Awingobit, Executive Secretary of the Importers and Exporters Association of Ghana, appealed for tailored financial solutions t enhance business.

“Setting up or running a business in Ghana is not easy. We urge financial institutions to open up to our business community and provide access to tailored financial services,” he said.

Awingobit also called on the Government to create marketplaces and enhance access for exporters and importers.

Mr. Takyi Addo, Director of Communications for the Abossey Okai Spare Parts Dealers, urged the Government to address high import duties and the depreciating Cedi.

He said that high import duties, coupled with interest rates, stifled the growth of local businesses.

Madam Eunice Ohui Hlordjison, CEO of Ephphatha Ghana Limited, urged the Government to implement supportive regulations for the local business sector.

She noted that the current business environment did not favor unemployed graduates aiming to start their own businesses, due to a lack of financial products from the state or banks.

Source: GNA

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