The immediate past President of the Ghana National Chamber of Commerce and Industry, (GNCCI), Nana Dr. Appiagyei Dankawoso 1, has bemoaned the cost of doing business in Ghana which has made it difficult for start-up businesses to survive.
Speaking on Eye on Port on Understanding Ghana’s Industrial and Commercial Space, the immediate past president of the GNCCI said the cost of borrowing is expensive with its accompanying high interest rates, hence, making it difficult for businesses to use for meaningful investments.
“The loans here are short and short term loans cannot be used to do any meaningful business. We are advocating for long term loans,” he lamented.
He said the Ghana Exim Bank has so far proffered some solutions by making available long term loan deals for businesses and the One District One Factory initiative is testament to that, where these businesses are enjoying fruitful outcomes from such loans.
“I advocate for the installation of development banking. For example, what EXIM bank has started is one way. A lot of people have got the funding to do their businesses now without much challenges,” he expressed.
He added, “Ghana Exim Bank is giving moratorium, giving long term loans. For the One District One Factory, most of the support that were given, I am privy to, because I am the Chairman of the Credit Committee.”
Nana Dr. Appiagyei Dankawoso 1 who is also the Executive Chairman of Olea M & G Insurance Brokers and 1st Vice Chairman of Juaben Rural Bank Ltd, said many of such business friendly loan facilities need to be initiated.
Another challenge he noted is the that “the cost of registration of businesses in the country is too much.”
The former President of the Ghana National Chamber of Commerce and Industry, however said the desired results of the 1D1F in terms of employment haven’t reach the targets expected, even though significant strides have been generally made.
He said, figures from the Institute of Statistical, Social and Economic Research prove that 94% of the workforce are employed by the private sector, indicating the importance of the private sector for national economic development.
Nana, who is also the Chairman of the Federation of West African Chambers of Commerce and Industry and the immediate past President of the Pan African Chamber of Commerce and Industry, said with the President of Ghana and his team having worked hard to position Ghana as the gateway of Africa, during the era of a free continental market, it is incumbent upon Ghanaian businesses to position themselves to take advantage, through capacity building programs.
“It is crucial time for Ghanaians especially the youth to prepare themselves, get the right training and experience for the work that is coming,” he advised.
He said with the advent of the AfCFTA and the ID1F, he envisages in the near future, a Ghana that is very attractive to investors across the world, where businesses when positioned properly will enjoy a major transformation.
“Ghana has become a place where a lot of investors will want to come. With the 1D1F project coming from Government for example, the US Government has also given support for 300 million lines and that anybody who want to go into the 1D1F can get machines from the US up to 85% of the amount and then 15% from working capital,” he revealed.