Ghana’s Member of Parliament (MP) for Assin Central, Kennedy Agyapong, isn’t content with most banks in the country. His explanation is, their interest rates are excessively high. Mr Ken Agyapong has thusly approached commercial banks to reduce their interest rates to invigorate economic activity.
The MP said the financing rates in Ghana are extremely ludicrous and make it practically unimaginable for local businesses to compete well with foreign organizations.
He settled on the decision during an engagement with students of the School of Business of the Kwame Nkrumah University of Science and Technology (KNUST) in Kumasi on Tuesday June 21.
The MP was speaking at the school’s event Dubbed: “Practitioners’ engagement on entrepreneurship competencies”, which was coordinated by the School of Business, in a joint effort with the Kumasi Business Incubator.
The program was pointed toward giving a platform to the students to learn from industry players a portion of the abilities and characteristics expected to make due as business visionaries.
Mr Agyapong, who is a businessman himself, showed that most commercial banks added their net revenues to the loans they give out, which wound up raising the loan interest.
“Many businesses have been complaining about this”
He said this is the reason most Ghanaian businesses would prefer to import finished products, rather than producing them locally.
Mr Agyapong encouraged the recently launched Development Bank of Ghana (DBG) to deal directly with businesses and not give the cash to commercial banks for onward loaning to businesses in Ghana.
He said it would be better for the DBG to deal with the private sector and lend the money to that sector at a cheaper rate than pass it through the commercial banks.
As indicated by him, the goal of the DBG of supporting the private sector with less expensive loans wouldn’t be accomplished if it wants to channel the credits through an outsider.
Mr Agyapong encouraged the youth against the hurry to make it in life, adding it was significant for them to stick around for their chance.
He said becoming successful didn’t come for the time being nevertheless required a great deal of sacrifice and hard work, which includes trustworthiness and ambitiousness.