• About
  • Advertise
  • Privacy Policy
  • Contact
Wednesday, July 9, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Targeted Lending Schemes, A Pathway to Economic Growth

June 25, 2024
Stephen M.Cby Stephen M.C
in Economy, Sub Top Stories2
0
Targeted Lending Schemes, A Pathway to Economic Growth

Economists and financial experts are urging the Ghanaian government to introduce a targeted lending scheme that would empower the Bank of Ghana (BoG) to provide lower interest rate loans directly to selected productive businesses.

This call comes in the wake of recent economic developments and the ongoing implementation of Ghana’s US$3 billion loan-support programme with the International Monetary Fund (IMF).

The suggestion has been championed by Dr. Daniel Anim-Prempeh, Chief Economist with the Policy Initiative for Economic Development (PIED), and Mr. Alhassan Andani, a veteran banker with over 20 years of experience. They argue that by offering loans at significantly lower interest rates, businesses could boost their production capacities, offer goods at more affordable prices, stimulate the local economy, and enhance living standards.

RelatedPosts

Ghana’s IMF Programme Goes Off Track

Ghana’s Reserves Soar: Mahama Eyes 10-Month Import Cover to Boost Cedi Stability

Bank of Ghana’s Tight Monetary Stance Gets IMF Nod in Battle Against Inflation

75731109.295
Mr. Alhassan Andani

In May 2024, the Monetary Policy Committee (MPC) of the Central Bank maintained the interest rate at 29%, citing the high global interest rate environment and downward pressure on the Cedi as key factors. However, Dr. Anim-Prempeh and Mr. Andani contend that the current interest rates are prohibitively expensive for businesses. They stress the need for government intervention to lower these rates and support industrial growth.

Importance of Consolidating the Recent Gains In Inflation

Dr. Anim-Prempeh emphasized the importance of consolidating the recent gains in inflation and exchange rates. He urged the government to deliberately identify and support businesses that could drive economic growth. Specifically, he proposed that the BoG should offer loans at a 10% interest rate for the next five years to selected businesses, particularly those in the agricultural value chain and the pharmaceutical industry.

This targeted approach would enable these sectors to expand their production capabilities, extend their reach beyond Ghana’s borders, and attract foreign inflows.

“The government must deliberately identify and support businesses that would propel growth, and come up with an initiative where the Bank of Ghana can give loans to businesses at a 10% interest rate for the next five years,” said Dr. Anim-Prempeh. He highlighted the current trend of Ghanaian businesses opting to buy from countries like China instead of producing locally due to the high cost of loans. This practice underscores the need for more affordable financing options to foster local production and economic self-reliance.

Echoing these sentiments, Mr. Andani pointed out that development is unattainable with an interest rate as high as 35%. “It’s too expensive and would not make our businesses globally competitive,” he said. He explained that high interest rates are often a symptom of underlying issues such as excessive money printing, insufficient production of goods and services, and poor fiscal and monetary policies. He called for pragmatic measures to reduce interest rates, thereby enabling businesses to thrive and compete on a global scale.

In response to these concerns, Dr. Alex Ampaabeng, Deputy Finance Minister, announced that the government would launch an initiative in July with a GHS 2.4 billion grant from the Development Bank Ghana (DBG) and other partners. This initiative, known as the Small and Medium-sized Enterprise (SME) Growth and Opportunity programme, aims to resource approximately 100 private sector SMEs, enhancing their capacity to grow, improve revenue performance, and create jobs.

“This is not the usual ‘give the grant and sit back’ initiative,” Dr. Ampaabeng emphasized. “It will hinge on key sectors of the economy, where our strengths are, including agriculture.” The programme is designed to ensure that these SMEs are well-supported and can significantly contribute to the country’s economic development.

By focusing on key sectors and providing affordable financing, Ghana can stimulate local production, reduce dependency on imports, and create a more robust and competitive economy. The proposed initiatives, if implemented effectively, could mark a significant shift towards sustainable economic growth and improved living standards for the people of Ghana.

READ ALSO: Majority Leader Accuses NDC Minority of Opposing Free SHS Bill

Tags: Bank of Ghana (BoG)Development Bank Ghana (DBG)exchange ratesinflationPolicy Initiative for Economic Development (PIED)Targeted Lending Schemes
Please login to join discussion
Previous Post

CHRAJ Highlights Persistent Challenges in Upholding Human Rights

Next Post

Fitch Solutions Upgrades Ghana’s 2024 Economic Growth Forecast to 4.3%

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Debby Reveals Professionalism Fuels Female Musicians
Entertainment

Debby Reveals Professionalism Fuels Female Musicians

July 9, 2025
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Africa

Mass Jail Sentences Deepen Tunisia’s Political Crisis

July 9, 2025
Mustapha Gbande, Party, President.
General News

Every NDC Member Is Better Off Today – Gbande

July 9, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Mass Casualty Incidents Besmirch Gaza’s Aid Struggle

July 9, 2025
GoldBod CEO Champions Value Addition in Mining
Extractives/Energy

Ghana Poised to Reap Big from Soaring Gold Prices

July 9, 2025
Hon. Haruna Iddrisu, Ghana's Minister for Education
General News

Ghana Moves to Overhaul Scholarship Regime with New Bill

July 9, 2025
Debby Reveals Professionalism Fuels Female Musicians
Entertainment

Debby Reveals Professionalism Fuels Female Musicians

by Esther Korantemaa OffeiJuly 9, 2025
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Africa

Mass Jail Sentences Deepen Tunisia’s Political Crisis

by Lawrence AnkutseJuly 9, 2025
Mustapha Gbande, Party, President.
General News

Every NDC Member Is Better Off Today – Gbande

by Silas Kafui AssemJuly 9, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Mass Casualty Incidents Besmirch Gaza’s Aid Struggle

by Comfort AmpomaaJuly 9, 2025
GoldBod CEO Champions Value Addition in Mining
Extractives/Energy

Ghana Poised to Reap Big from Soaring Gold Prices

by Prince AgyapongJuly 9, 2025
Hon. Haruna Iddrisu, Ghana's Minister for Education
General News

Ghana Moves to Overhaul Scholarship Regime with New Bill

by Evans Junior OwuJuly 9, 2025
Debby Reveals Professionalism Fuels Female Musicians
Mass Jail Sentences Deepen Tunisia’s Political Crisis
Mustapha Gbande, Party, President.
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
GoldBod CEO Champions Value Addition in Mining
Hon. Haruna Iddrisu, Ghana's Minister for Education
[/vc_row_inner]

Recent News

  • Debby Reveals Professionalism Fuels Female Musicians
  • Mass Jail Sentences Deepen Tunisia’s Political Crisis
  • Every NDC Member Is Better Off Today – Gbande
  • Mass Casualty Incidents Besmirch Gaza’s Aid Struggle
  • Ghana Poised to Reap Big from Soaring Gold Prices
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.