High costs hinder Ghana startups and SMEs Speaker says 25% loan rates too high
High interest rates, utility bills, and complex taxes are hurting Ghanaian Small and Medium Enterprises (SMEs). A parliamentary leader highlighted these issues. He said that a 25% loan interest rate makes it hard for new businesses to start. High electricity costs also make it difficult for businesses that need refrigeration.
Ghana’s private sector is under strain from several economic factors. These include high interest rates, rising utility costs, and a complicated tax system. This was highlighted by a parliamentary leader at the Kwahu Business Forum on April 3, 2026. He argued these issues make it hard for Small and Medium Enterprises (SMEs) to succeed.
The leader noted that lending rates in the banking sector are too high. He gave an example of a 25% interest rate on a loan for new equipment. This makes it difficult for entrepreneurs to invest and grow. He also pointed out that electricity tariffs are too expensive. Businesses that rely on refrigeration, like food stalls, struggle with these costs. He stated this turns necessary business tools into financial burdens.
The criticism stems from talks with groups like the Ghana Union of Traders Association (GUTA) and the Association of Ghana Industries (AGI). These groups represent many businesses facing these challenges. The leader wants to push for new laws that will ease the financial and regulatory pressure on local businesses. This aims to create a better environment for job creation and economic growth.
Source: StatsGH — Ghana's data-driven news platform