Minister for Business Development, Ibrahim Awal Mohammed says his ministry will be dialoguing with financial institutions to agree on a relatively low interest rate on loans for small and Medium Enterprises (SME).According to Awal Mohammed, many Small and Medium Enterprises are folding up due to the high cost of borrowing hence the decision by the Akufo-Addo-led administration to cut interest rates to allow these businesses flourish.
He says the existing 35% interest rate if not looked at will lead to the further collapse of more businesses in Ghana with a rippling effect on the country's employment situation.
Awal Mohammed adds that his ministry is also keen on empowering SMEs by enhancing their productive capacity and competitiveness through training and orientation.
“We are looking at all the businesses, and we are to make sure that within our first four years in office Ghanaian businesses should not only be very effective, but they should be competitive enough to get foreign markets”, he said.
Mr. Mohammed also asserted that his ministry will be getting on board the service of business development partners with bankable proposals to help strengthen the capacity of small and medium businesses in Ghana.