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Kufuor urges banks to give more funds to SMEs
Accra, March 25, Ghanadot/GNA – President
John Agyekum Kufuor on Tuesday inaugurated the BSIC Ghana
Limited, a Sahelo-Saharienne Bank for Investment and
Commerce, and made a demand on banks to provide more funding
for micro, small and medium enterprises.
Enhanced financing to these enterprises, which constitute
more than 90 per cent of the country’s private sector, he
said, would lead to overall phenomenal growth of the
economy.
He reminded the banks that capturing this sector amounted to
capturing the larger share of the market.
BSIC Ghana is the second bank to start operations in the
country this year and has targeted project financing,
regional trade and agro-processing among its main priority
areas.
President Kufuor said the Government appreciated why, for
years this critical area had been perceived as high risk and
expressed the hope that the passage of the Credit Reporting
Act was going to help to develop appropriate credit
infrastructure with the requisite security to attract
increased funding.
President Kufuor was unhappy that the degree of competition
in pricing by the banks continued to remain weak despite the
entry of a number of new ones into the industry over the
last couple of years.
“Lending rates are still high. I hope the presence of BSIC
Ghana will generate such competition as will lead to lower
rates,” he added.
The opening of the bank, the 12th in Africa so far, followed
a memorandum of understanding signed in Accra at the eighth
session of the Ghana-Libya Joint Commission, by which Ghana
acceded to the membership of the Sahelo-Saharienne
Community.
Membership of the Community is open to all African countries
and the Red Sea and Indian Ocean African States.
President Kufuor said BSIC Ghana was a good example of
co-operation between nations, as well as fruitful
partnership between the public and private sector.
He pointed out that more than ever before, there was now
need for closer co-operation among African nations to
survive in the global economy.
“Much has already been achieved, but there is still more to
do to change the circumstances of the people for the
better.”
Professor George Gyan-Baffour, Deputy Minister of Finance
and Economic Planning, said the bank’s presence was an
indication of the positive and sustained growth of the
economy.
The Governor of the Bank of Ghana, Dr Paul Acquah, said
there was considerable deepening of the finance services
sector with substantial increase in bank deposits, total
assets and loan portfolio.
He said he was optimistic that the new bank would make
important contribution to the financial sector.
Mr Al-Hadi Alwarfalli, the General Manager, pledged to serve
as important partners of development.
GNA
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