Ghana’s industrial ambitions could receive a major boost if the country establishes a specialised financial institution dedicated to providing affordable, long-term funding to businesses, particularly those operating in capital-intensive sectors.
Deloitte Africa Leader for Infrastructure & Capital Projects, Yaw Appiah Lartey, has called for the establishment of an industrial development bank that would provide businesses with financing at relatively low interest rates.
His proposal comes at a time when access to affordable capital remains one of the biggest challenges confronting businesses seeking to expand operations, acquire equipment, develop infrastructure and compete in regional and international markets.
Deloitte Identifies Financing Gap
Speaking on the need to strengthen Ghana’s industrial base, Mr Lartey, who is also Partner for Strategy and Transactions at Deloitte Ghana, pointed to Nigeria’s Bank of Industry as a model Ghana could consider.
He explained that the institution has a specific mandate to support industrial development and provides financing to businesses operating in strategic sectors.
According to him, some businesses in Nigeria can access financing at interest rates as low as 5% to 7%, creating an opportunity for companies to undertake investments that may otherwise be difficult to finance through conventional commercial banking.
“So, the Bank of Industry in Nigeria is specifically supporting industrial development, including oil and gas, and they have interest rates as low as 5% to 7% for companies and businesses.”
Yaw Appiah Lartey
Mr Lartey believes Ghana can draw lessons from this approach and establish a similar institution focused specifically on industrial development.
The proposal effectively puts the spotlight on a longstanding concern among Ghanaian businesses: the cost and availability of finance.
For companies requiring substantial capital to purchase machinery, build factories, develop energy infrastructure or expand production, expensive credit can make potentially profitable projects financially unattractive.
Specialised Bank Could Change the Game
A dedicated industrial bank, Mr Lartey argued, could fill an important gap within Ghana’s financial system by offering financing designed around the realities of industrial businesses.
Unlike conventional lending, industrial financing often requires longer repayment periods because major investments can take several years before generating sufficient returns.
A specialised institution could therefore provide patient capital to businesses with viable projects but limited access to affordable commercial loans.
“It’s something that elsewhere in Africa, including Ghana, we can learn that and have a bank that’s established for industry.”
Yaw Appiah Lartey
Such an institution could support sectors including oil and gas, manufacturing and other strategic industries that have the potential to generate employment, increase domestic production and strengthen Ghana’s position in regional markets.
Mr Lartey noted that the proposed institution would not necessarily replace existing development finance institutions.
Instead, it could complement organisations such as the Agricultural Development Bank and the National Investment Bank by giving industrial businesses access to a more targeted source of funding.
Oil and Gas Businesses Need More Than Money
While financing is central to industrial development, Mr Lartey cautioned that money alone would not automatically transform Ghanaian businesses into globally competitive companies.
This is particularly important in the oil and gas industry, where local businesses are expected to meet strict technical, safety, financial and operational requirements.
He therefore called for financing to be accompanied by deliberate capacity-building programmes.
“We have to build the capacity of our local SMEs, so the local operators need to be empowered.”
Yaw Appiah Lartey
His concern is straightforward. Ghanaian businesses may have access to capital, but without the technical expertise and managerial capabilities required to execute complex projects, they could struggle to compete with larger international firms.
This means industrial policy must go beyond providing loans.
Businesses also need technical training, skills development, mentorship, technology and support to improve their productivity and operational standards.
Building Ghanaian Industrial Giants
The bigger objective, according to Mr Lartey’s proposal, should be to help Ghanaian companies grow from small and medium-sized businesses into major players capable of competing beyond the domestic market.
This is particularly significant in industries where international companies currently dominate large contracts.
A combination of affordable finance and capacity development could give local firms the resources and confidence to invest in equipment, hire skilled workers, improve technology and pursue larger contracts.
The benefits could extend well beyond individual companies.
Stronger local businesses could create more jobs, retain more value within the Ghanaian economy and deepen domestic participation in strategic sectors.
For Ghana, the debate therefore goes beyond establishing another financial institution. It is about creating the conditions for local businesses to scale.
Ghana’s Industrial Push Needs Cheaper Capital
Mr Lartey’s proposal also raises a broader question about how Ghana finances its industrial transformation.
If businesses are expected to expand production, create jobs and participate meaningfully in sectors such as manufacturing and oil and gas, access to reasonably priced long-term capital will remain crucial.
A specialised industrial bank could potentially provide that missing link, particularly if it is properly capitalised, professionally managed and governed by a clear mandate.
But its success would ultimately depend on more than the availability of cheap loans.
Businesses would need to demonstrate strong projects, while the institution itself would need robust systems to ensure that financing reaches productive ventures.
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