Business News of 2014-01-21

AGI justifies move to establish a bank

The President of Association of Ghana Industries (AGI), James Asare Adjei says the Association wants to establish a bank to help extend cheap credit to industries and small businesses.
The Association last year announced that it is working to establish a commercial bank to support their members. However, some analyst have questioned AGI's move citing challenges in getting the required capital to set up the bank.
But the new AGI president tells Joy Business looking at the challenges facing industries this might be the way to go.
He explained that the underlining principle of commercial banks is to make profit. They therefore charge high interest on loans thereby making local companies less competitive.
“It has therefore become very necessary that if we want to grow our micro, small and medium enterprises, something drastic must be done in terms of credit available and affordability.”
He said the intention of AGI is to grow local businesses to become global giants in future, “so it is not a question of whether it is a prudent idea, but it is a matter of necessity that we need to ensure that we are supported”.
He hopes the AGI will raise funds from bilateral and multilateral organisations ready to support it. With the determination and support of Ministry of Trade and Bank of Ghana, AGI would be able to raise 100 million Ghana cedis seed capital for the take off of the bank, he said.
AGI joins other associations like the Ghana Mine Workers union, National Association Teachers that are currently working to establish a bank.