By Ashiadey Dotse
The Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, has called for better access to long-term financing for businesses in Ghana. He made these remarks at the B-Ready Report dissemination event in Accra, hosted by the World Bank Group and the Government of Ghana on March 26, 2025.
According to Mr. Twum-Akwaboah, businesses often find it easier to secure short-term loans from banks for working capital. However, getting medium to long-term loans, which are essential for expanding industries, remains difficult. He highlighted that industries need long-term financing to retool, upskill workers, and establish new business lines.
He acknowledged some recent interventions, such as the Development Bank Ghana (DBG) and programs supporting agribusiness financing. However, he questioned whether these institutions are adequately funded. “DBG, for example, relies heavily on donor funding, and the government’s contribution has not been significant,” he said. He urged the government to recapitalize DBG to ensure it can provide sufficient long-term loans.
Mr. Twum-Akwaboah also suggested that the Bank of Ghana’s 9% reserve requirement for commercial banks could be better utilized. He proposed that part of these funds be allocated to support medium-term loans at lower interest rates, especially for small and medium enterprises (SMEs) in key sectors.
He emphasized the need for SMEs to improve their management and governance systems to qualify for financing. He also encouraged the use of technology to enhance financial transparency and record-keeping, making it easier for banks to assess businesses for loans.
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