Seth Twum-Akwaboah, the Chief Executive Officer of the Association of Ghana Industries (AGI), has called for improved access to long-term financing for businesses in Ghana.
He made these comments at the B-Ready Report dissemination event in Accra, hosted by the World Bank Group and the Government of Ghana on March 26, 2025.
Mr. Twum-Akwaboah noted that while businesses can often secure short-term loans for working capital, obtaining medium to long-term loans necessary for industrial expansion remains a challenge. He stressed that long-term financing is crucial for industries to invest in retooling, worker upskilling, and diversifying business operations.
Although he acknowledged some recent initiatives, such as the Development Bank Ghana (DBG) and programs aimed at supporting agribusiness financing, he raised concerns about their funding levels.
“For instance, DBG relies heavily on donor funding, and the government’s contribution has not been substantial,” he pointed out. He called for the government to recapitalize DBG to ensure it can offer sufficient long-term loans.
Mr. Twum-Akwaboah also suggested that the Bank of Ghana’s 9% reserve requirement for commercial banks could be more effectively utilized. He recommended that a portion of these funds be allocated to support medium-term loans at lower interest rates, particularly for small and medium enterprises (SMEs) in key sectors.
Furthermore, he emphasized the importance of SMEs improving their management and governance structures to qualify for financing. He also encouraged the adoption of technology to enhance financial transparency and record-keeping, making it easier for banks to assess businesses for loan eligibility.
