Commercial loans too costly for women, youth traders – GNCCI

The Ghana National Chamber of Commerce and Industry (GNCCI) has called for improved access to affordable financing for women and young people engaged in trade, warning that high commercial interest rates are undermining their ability to grow their businesses.

Head of Marketing at the GNCCI, Grace Dzeble, said although commercial banks have funds available for lending, the cost of borrowing remains a major barrier for traders seeking to expand their operations.

Speaking on the Citi Breakfast Show on Wednesday, October 28, she stressed that access to credit, rather than the availability of funds, was the main challenge facing women and young traders.

“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 it. Like Doris just said, you may have the stocks, you may have all that. But the interest rate is the issue,” she said.

Miss Dzeble noted that women account for more than 40 per cent of Ghana’s small and medium-sized enterprise (SME) sector, making affordable financing essential to their ability to expand and compete in larger markets.

She argued that Ghana must invest in women and young traders to enable them to take advantage of opportunities under the African Continental Free Trade Area (AfCFTA) and strengthen their participation in regional trade.

To address the challenge, she called on Development Bank Ghana to ensure that its participating financial institutions (PFIs) extend loans to traders through development-financing arrangements instead of relying on conventional commercial lending products.

According to her, development financing can provide more flexible repayment terms, allowing women and young entrepreneurs sufficient time to grow their businesses and repay loans without excessive financial pressure.

Miss Dzeble warned that without access to affordable credit, many women and young traders would struggle to expand their businesses and compete effectively in regional markets.