Grace Dzeble, Head of Marketing at the Ghana National Chamber of Commerce and Industry (GNCCI), has hinted at a gap in the traditional financing system for women and young people engaged in trade, citing high interest rates and limited access to affordable loans as major barriers to business growth.
Speaking on the Citi Breakfast Show on Wednesday, October 28, she said although commercial banks have funds available for lending, the cost of borrowing makes it difficult for women and young traders to secure financing on terms that support sustainable business growth.
She stressed that Ghana must invest in traders, particularly women, if the country is to take advantage of opportunities under the African Continental Free Trade Area (AfCFTA) and secure its fair share of the continental market.
Ms Dzeble noted that women account for more than 40% of the small and medium-sized enterprise (SME) sector, making access to affordable financing crucial to their ability to expand their businesses and compete in larger markets.
She argued that the availability of funds does not necessarily translate into access to credit, as traders may have the stock and business potential required to grow but struggle to borrow at affordable interest rates.
“We cannot depend on the commercial banks because there’s availability. But accessibility is a problem. The banks have the money, but they are not able to access. Like Doris just said, you may have the stocks, you may have all that. But the interest rate is the issue,” she said.
Ms Dzeble called on Development Bank Ghana to ensure that its participating financial institutions (PFIs) provide loans through its development-financing arrangements rather than relying on their regular commercial lending products.
According to her, development financing offers more patient lending terms, giving women and young entrepreneurs sufficient time to grow their businesses and repay loans without facing excessive pressure.
She warned that without improved access to affordable financing, women traders would struggle to expand their operations and take advantage of opportunities in regional markets.
