The Association of Ghana Industries (AGI) wants development banks such as the National Investment Bank (NIB) and Agricultural Development Bank (ADB) to scale up their long term funding for industries to enable them expand their investment projects.
Chief Executive, Seth Twum Akwaboah, says despite the expected take off of the National Development Bank, he wants the two development banks to complement the efforts of the new state bank.
He told Joy Business this will make Ghanaian businesses competitive on the African continent and accelerate economic development through job creation.
“I believe that the other financial institutions like the NIB’s and ADB’s who are suppose to be providing development funding needs to be recapitalised. If you are able to augment their capital and provide them funding, it will help a great deal.”
“For you (industry) to do an expansion and upscaling, we need medium to long term capital and it’s the reason why AGI has been clamouring for a development bank”, he said, adding “fortunately, the government is now setting up one. In fact they’ve gone quite far and we have met them and they are going to be working with us so that we are able to enhance access to medium to long term capital to expand their project.”
“So we think that with that kind of development it will help a great deal”, Mr. Akwaboah explained.
Industry have been clamouring for long term, flexible term and competitive interest rates loans to enable them expand rapidly and create more jobs.
This will also ensure the competitiveness of Ghanaian manufacturers in the Africa region, particularly the advent of the African Continental Free Trade Agreement.