The Chief Executive Officer of the Ghana Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, has expressed concern over the high interest rates in the country, emphasizing that they are crippling the private sector, particularly small and medium-sized enterprises (SMEs).

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Speaking on Joy News' PM Express Business Edition, Badu-Aboagye stressed the need for better financing strategies to drive economic growth.

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“If you want to do proper banking, give money to the private sector. You need to assess their profile, their credit readiness, and their project viability. You follow up, monitor, and get your money back,” he stated.

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He noted that the dominance of government borrowing in the financial sector has reduced banks' incentive to lend to private businesses.

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“If government decides it’s not borrowing as much, the money sitting with the banks will compel them to give it to the private sector,” Badu-Aboagye added.

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However, he acknowledged the challenges that businesses, especially SMEs, face in securing loans, largely due to high interest rates.

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“SMEs want money. Our economy depends on SMEs. Try getting money as an SME, and they give you 30% interest. How do you expect an SME to borrow at 30-40%, make a profit, and also pay you back?” he questioned.

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According to him, while businesses in Ghana are generally productive, external factors such as high interest rates and taxes make it difficult for them to operate profitably.

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“At the micro level, businesses are productive. It’s when you bring in interest rates and taxes that they start running at a loss,” he concluded.

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