'Borrowing from loan sharks may be more favorable than borrowing from banks in Ghana' - Cudjoe

The current economic challenges, coupled with a depreciating local currency, high interest rates, and surging inflation, have severely impacted the savings culture of most Ghanaians.

Regardless of age group, the crisis is having a dire effect on the average Ghanaian. This has also significantly impacted investment options in recent years due to high interest rates for both public and private sector lending.

In light of this, the Founding President of the policy think-tank, IMANI Africa, has made a rather startling suggestion regarding the increasing interest rates in the country.

He argues that it might be more prudent to borrow from loan sharks rather than borrowing from banks that maintain interest rates at astronomical levels.

Franklin Cudjoe, in a post shared via X on May 22, also criticized President Akufo-Addo's recent remarks suggesting that he has left an enviable legacy during his 7-and-a-half-year tenure in office.

"Borrowing from loan sharks may be more favorable than borrowing from banks in Ghana. 55% interest rates and Nana Addo says he has left an enviable legacy?" Franklin Cudjoe wrote.

The issue of high interest rates has been a concern for businesses, especially the private sector, who have consistently urged the government and the Central Bank to adopt policies aimed at reducing interest rates for lending.

This situation has led to the crowding out of the private sector, which often relies on loans for business activities.

See Franklin Cudjoe's tweet below

Borrowing from Loan Sharks may be more favourable than borrowing from banks in Ghana. 55% interest rates and Nana Addo says he has left an enviable legacy?

— Franklin CUDJOE (@lordcudjoe) May 22, 2024