Ghanaian Businesses Are Failing For Other Reasons – A&C Mall Founder
by Stephen Zoure · MyNewsGh.comFounder of A&C Mall, Dr. Andrew Kwabena Asamoah, says the struggles of indigenous Ghanaian businesses are not due to a lack of hard work but rather the high cost of financing, which leaves them unable to compete with foreign firms that access cheaper capital.
Speaking in an interview with Kafui Dey, Dr. Asamoah argued that local entrepreneurs face a significant disadvantage because they rely on expensive domestic loans while many foreign businesses obtain funding abroad at much lower interest rates.
“The Ghanaian businessman is hardworking. The challenge is that they often cannot compete with foreign capital, which comes with much lower interest rates,” he said.
According to him, access to affordable financing remains one of the biggest obstacles to the growth and competitiveness of Ghanaian-owned businesses, making deliberate government intervention necessary.
“Financing is a big thing that is hindering Ghanaian businesses, unless the government makes a conscious effort to help local businesses because it is not easy for them,” he stated.
Dr. Asamoah illustrated the disparity by comparing the borrowing costs faced by local and foreign investors, arguing that no business can compete effectively under such unequal financial conditions.
“Someone is competing with only 3% interest and the Ghanaian is taking a loan of 30%. How do you compete with such a person?” he asked.
He stressed that the financial challenges confronting indigenous businesses should not be mistaken for a lack of enterprise or ambition, insisting that the real problem lies in the country’s financing environment.
“That is the weakness of the local people. It is not their fault. It is not as if they are not hardworking, but it is difficult to raise financial capital from within the country,” he said.
Dr. Asamoah called for targeted government policies to improve access to affordable credit for indigenous businesses, arguing that such support is essential if local entrepreneurs are to compete on equal footing with foreign investors and contribute meaningfully to Ghana’s economic development.
Source: MyNewsGh.com
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