Executive Director of the Center for Greater Impact, Rev. Dr. Sam Worlanyo Mensah, has made a passionate appeal to the Bank of Ghana (BoG) to consider reducing the policy rate to enable businesses to borrow to survive especially in this Covid-19 pandemic era.
In an interview with the media he explained policy rate as the rate at which the Central Bank lends to commercial banks for onward lending to their customers. He was firm in his conviction that many businesses in Ghana have collapsed due to two major events – the banking sector cleanup excercise which was undertaken by the current government, and the onset of Covid-19 in March last year.
The economic lecturer asserted that many businesses in the country are really struggling to survive.
“Many businesses in the country have collapsed, others are on a standstill and really needs some financial support to move,” he said.
Rev. Dr. Sam Worlanyo Mensah further opined that the Microfinance companies were mainly responsible for financial aid to many Medium and Small Scale Enterprises (SMEs), however the closing down of same has had a major toll on the capital market of the country.
He indicated that businesses have been left with no option than to borrow from the commercial banks with high interest rates to support their businesses.
The policy analyst therefore prayed the Central Bank to come to the the rescue of various businesses in the country by reducing the policy rate and forcing commercial banks to borrow to businesses at a very affordable interest rate.
“When the policy rate is reduced it forces the commercial banks to also reduce their interest rate, and that’s good for businesses in the country,” he added.
Rev. Dr Worlanyo Mensah urges government to reposition businesses to take advantage of the African Continental Free Trade Area (AfCFTA) for the socio-economic growth of the country.
“Have we identified some businesses for support under these AfCTA? Ghanaians must be seen to be taking advantage of those Policies and programs under AfCTA” he opined.
He called on the Ghanaian populace to support made in Ghana goods as that is the only way SMEs can survive in this trying times.
He also advised the government to walk the talk of Ghana Beyond Aid and support local businesses to expand and employ more.
By Derrick Botsyoe || ghananewsonline.com.gh