Seth Adjei-Baah with Rashid Pelpuo
Seth Adjei-Baah, President of the Ghana Chamber of Commerce and Industry (GCCI), has expressed worry about the high cost of borrowing which is negatively affecting the growth of businesses.
?While businesses are borrowing as low as between three and five percent in other countries to produce and export to Ghana, Ghanaian businesses are borrowing at 28 percent interest. This means that we are already at a disadvantage of about 25 percent difference.?
Mr. Adjei-Baah disclosed this when board members of GCCI paid a courtesy call on Rashid Pelpuo, the Minister of State in charge of Private-Public Partnerships at the Presidency.
He called on government to put measures in place to address the situation.
He said most business people in Ghana were engaged in trade because of the high cost of borrowing in the country, adding that ?the current situation where monies are borrowed for trade only will not move the economy forward. Trade is not what is going to move us forward, it is about industry.?
?We can only create employment for our youth and graduates through manufacturing and industry. But before we can do that, we must first look at addressing the issue of high cost of borrowing. If we are able to address that issue, then we can move forward as a country?.
He said the growth of every economy depends on the position of the private sector, stating that ?politicians are there to do their bit but the real development of the economy is with the private sector. It is time we have to look within and see how best we can develop the private sector of Ghana?.
Mr Adjei-Baah said private sector operators were also facing energy problems, noting that the country must pay realistic prices for energy use.
?It looks as if we are paying for a lot of waste. This is because some people are not doing their work well and the cost has been passed on to consumers.?
He therefore urged government to find ways of reducing the waste in the system.
Mr. Pelpuo, in an address, gave the assurance that the problems of private sector operators would be tackled by government.
By Cephas Larbi