Business24 Editorial: Hope for the private sector

After a period of constrained credit to businesses due to the uncertainties surrounding the coronavirus pandemic on trade and related commercial activities, the latest credit conditions survey by the Bank of Ghana shows that banks in the country are increasing their lending support to businesses.

Private sector credit growth slowed in the first two months of the year due to constrained demand for credit. Real private sector credit contracted by 2.7 percent compared to a growth of 12.9 percent over the same period last year, the report indicated.

Bearing the harsh effect of the pandemic, private sector businesses are in dire need of access to long-term finance that will help boost productivity and job creation.

Sustained investments, specifically banks’ funding to key sectors including agribusinesses, manufacturing and high-value services is what is needed to fast-track the nation’s recovery from the pandemic.

By offering long-term wholesale financing, credit guarantees, and other services they will boost the competitiveness of Ghana’s priority sectors and market segments.

It’s of no doubt that banks will play a key role in the participation of private sector businesses in the single continental market as well as government’s aggressive industrialisation for import substitution.

This gesture from the banks highlights their critical role in all spheres of socio-economic activities and depicts a ready sector that will provide the financial muscle that will drive the journey to recovery post-Covid.