View Full Version : Access to credit still number one challenge for Businesses – Latest AGI Business Barometer

Quaiqu Ananse
3rd February 2012, 09:14 PM
It appears interventions by managers of economy to improve access to credit by businesses are just not yielding desired results. Enterprises are still having difficulties with accessing credit from banks, according to the latest Business Barometer Survey conducted by the Association of Ghana Industries, AGI.

The periodic opinion survey represents the views of business owners from October to December last year. It gauged the views of 300 small and big businesses across the country. It cites low access to credit and high lending rates as the twin factors which are slowing down the growth of businesses.

According to the AGI, this is worrying especially because of the continuous decline in inflation and treasury-bill rates. AGI President, Nana Owusu Afari tells JOY BUSINESS, the banks are just not being innovative in their credit-delivery role.
“Even where the rate of interest is high, it is still very difficult to access credit. We think that the banks also are not doing enough to access cheaper funds because just about 20 to 25% of Ghanaians are banked. Over 75% Ghanaians don’t have bank accounts so what are all the banks in the system doing? Why don’t they go round and get Ghanaians banked” he questioned.

Depreciation in the value of the cedi also came up in the survey as one of the major challenges facing industry - for the first time in more than eight quarters. This volatility of the cedi against the major trading currencies is said to have impacted negatively on especially the manufacturing sector. The greatest mover in the survey was low purchasing power which dropped from second position in 2011 quarter three to sixth in quarter four.

Source: http://business.myjoyonline.com/pages/news/201202/80973.php