Killer Interest Rates is Crippling Ghanaian Businesses – A&C Mall Founder
by Stephen Zoure · MyNewsGh.comFounder of A&C Mall, Dr. Andrew Kwabena Asamoah, has attributed the competitive advantage enjoyed by many foreign-owned businesses in Ghana to easier access to affordable financing abroad, arguing that indigenous entrepreneurs are constrained by expensive local credit and inadequate government support.
Speaking in an interview with Kafui Dey, Dr. Asamoah said while foreign investors often secure long-term loans at relatively low interest rates from financial institutions in their home countries, Ghanaian business owners are forced to rely on costly domestic borrowing.
“Foreign businesses in Ghana do better because they take loans from outside at cheaper interest rates, whilst Ghanaian business people get loans at higher interest rates here,” he said.
According to him, the disparity places indigenous businesses at a significant disadvantage, making it difficult for them to compete effectively with foreign firms operating in the same market.
Dr. Asamoah criticised what he described as the absence of deliberate government policies to strengthen local entrepreneurship, arguing that Ghana lacks dedicated financial institutions that provide affordable, long-term financing for indigenous businesses.
“The government has no plans to help the indigenous Ghanaian businessman,” he stated.
Drawing comparisons with other countries, he said governments elsewhere establish specialised development banks, guarantee business loans and closely monitor funded projects to ensure the resources are used for their intended purposes.
“In other countries, they have special banks and the government guarantees the loans, monitors the businesses and makes sure the work is done according to plan. They also provide long-term loans,” he explained.
Dr. Asamoah maintained that until Ghana adopts similar financing mechanisms to support local entrepreneurs, indigenous businesses will continue to struggle to compete with foreign-owned companies that benefit from cheaper capital and stronger institutional backing.
Source: MyNewsGh.com
Thanks for reading from MyNewsGH as a news publishing website from Ghana. You are free to share this story via the various social media platforms and follow us on; Facebook, TikTok, Twitter, Instagram etc.