Killer interest rates is crippling ghanaian businesses – A&C Mall Founder

Founder of A&C Mall, Dr Andrew Kwabena Asamoah, has attributed the competitive advantage enjoyed by many foreign-owned businesses in Ghana to easier access to affordable financing abroad, arguing that indigenous entrepreneurs are constrained by expensive local credit and inadequate government support.

Speaking in an interview with Kafui Dey, Dr Asamoah said foreign investors often secure long-term loans at relatively low interest rates from financial institutions in their home countries, while Ghanaian business owners are forced to rely on costly domestic borrowing.

“Foreign businesses in Ghana do better because they take loans from outside at cheaper interest rates, while Ghanaian business people get loans at higher interest rates here,” he said.

According to him, the disparity places indigenous businesses at a significant disadvantage, making it difficult for them to compete effectively with foreign firms operating in the same market.

Dr Asamoah criticised what he described as the lack of deliberate government policies to strengthen local entrepreneurship, arguing that Ghana does not have enough dedicated financial institutions providing affordable, long-term financing for indigenous businesses.

“The government has no plans to help the indigenous Ghanaian businessman,” he stated.

Drawing comparisons with other countries, he said governments elsewhere establish specialised development banks, guarantee business loans, and closely monitor funded projects to ensure resources are used for their intended purposes.

“In other countries, they have special banks, and the government guarantees the loans, monitors the businesses, and ensures the work is done according to plan. They also provide long-term loans,” he explained.

Dr Asamoah maintained that until Ghana adopts similar financing mechanisms to support local entrepreneurs, indigenous businesses will continue to struggle to compete with foreign-owned companies that benefit from cheaper capital and stronger institutional support.