Ghana needs better access to long-term finance for businesses – AGI CEO

Seth Twum-Akwaboah, the Chief Executive Officer of the Association of Ghana Industries (AGI), has urged better access to long-term financing for businesses in Ghana. He made these comments at the B-Ready Report public awareness campaign in Accra, led by the World Bank Group and the Government of Ghana on March 26, 2025.
‎
‎As stated by Mr. Twum-Akwaboah, businesses mostly find it easier to obtain  short-term loans from banks for working capital. On the other hand, acquiring medium to long-term loan are important for expanding industries and also remains difficult.

He stressed that industries need long-term financing to modernize, train employees, and establish new business lines.
‎
‎ He recognized certain recent interventions such as the Development Bank Ghana (DBG) and programs aiding agribusiness financing. Mr. Twum-Akwaboah questioned whether these institutions are financially backed.

He said that “DBG, for example, relies heavily on donor funding, and the government’s contribution has not been significant.” He insisted that the government should be able to restore financial health DBG to ensure it can provide enough long-term loans.
‎
‎Mr. Twum-Akwaboah also recommended that the Bank of Ghana’s 9% reserve requirement for commercial banks could be more effectively used. He suggested that some amount of these funds be diverted to facilitate medium-term at lower interest rates, particularly for small and medium enterprises (SMEs) in key sectors.
‎
‎He stressed on the need for SMEs to enhance this operational efficiency and the system of governance to qualify for financing. He also urged the use of technology to promote financial transparency and record-keeping, enhancing bank reveiw processes  businesses for loans.