High interest rates discourage us from accessing credit facilities- business women

Women in small-scale businesses in Sunyani are seeking government help. They want lower interest rates to access credit for expanding their activities.

On March 28, 2025, the Bank of Ghana raised its benchmark rate to 28 percent. This increase followed three meetings without any changes. The decision was made due to concerns about inflation.

In an interview with the Ghana News Agency (GNA), women traders expressed that the 28 percent interest rate is too high. They find it hard to get loans needed for their businesses.

The GNA is involved in the Post COVID-19 Skills Development and Productivity Enhancement Project (PSDPEP). This project aims to build health-related skills and create jobs for youth and women. It is funded by a $30 million African Development Bank project, which includes $4 million for Small and Medium Enterprises at reduced loan rates.

However, many women traders are unaware of this facility. They worry about lengthy paperwork when applying for loans from major banks.

Madam Agnes Akua Badu owns “Oman Dehyia” Cosmetics shop at the Sunyani market. She said, “Our problem is the interest rates.” She added that banks deduct processing fees from small loans, making it hard to get what they need.

She hopes that as the cedi gains value, the government will reduce interest rates.

Mad Ajara Dauda sells porridge near Penwkasi Traffic Light in Sunyani. She mentioned that repaying bank loans consumes all their profits, hindering business growth.

“If there’s a facility like that, we pray for government support,” she said.

Mad Gloria Agyekum sells women's underwear at Masommasom market. She noted that banks offer loans with high-interest rates and tough repayment terms. While some private institutions provide easier access to loans, their repayment terms can be burdensome.

Mrs. Agyekum stated they avoid banks due to high-interest rates and called on the government for assistance.

From Dennis Peprah, Sunyani
GNA