{"id":114288,"date":"2026-02-06T04:21:00","date_gmt":"2026-02-06T04:21:00","guid":{"rendered":"https:\/\/sotnews.agency\/?p=114288"},"modified":"2026-02-06T04:21:00","modified_gmt":"2026-02-06T04:21:00","slug":"a-one-year-loan-cant-build-a-factory-gncci-boss-blasts-short-term-bank-lending","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=114288","title":{"rendered":"A one-year loan can\u2019t build a factory \u2013 GNCCI boss blasts short-term bank lending"},"content":{"rendered":"
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\n \t<\/i> Read Time:<\/span>2 Minute, 41 Second <\/div>\n\n <\/div>
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The Ghana National Chamber of Commerce and Industry (GNCCI) CEO, Mark Badu-Aboagye, has criticised Ghana\u2019s banking sector for an unhealthy preference for short-term loans.<\/p>\n

He argues that this trend undermines business expansion and industrial growth.<\/p>\n

Speaking on Joy News\u2019 PM Express Business Edition on Thursday, Mr Badu-Aboagye said Ghana\u2019s real challenge is not necessarily access to credit in general, but access to the kind of credit businesses need to grow.<\/p>\n

\u201cSo when we say access to credit, let\u2019s look at it from the short term and the long term,\u201d he said.<\/p>\n

According to him, Ghanaian banks are comfortable offering short-term credit facilities, typically between three months and one year.<\/p>\n

\u201cSo our banks, they like giving short-term credits. So usually it\u2019s between three, six months and one year,\u201d he stated.<\/p>\n

He explained that short-term lending has not been the biggest headache for the private sector, because banks are willing to provide such loans and recover their money quickly.<\/p>\n

\u201cWe wouldn\u2019t have a challenge,\u201d he said, adding that \u201cas for the short ones like three months, because they also make their money, they will give it to you, and then later you come and pay.\u201d<\/p>\n

However, the GNCCI CEO stressed that the bigger problem lies in long-term credit, which he described as the real lifeline for businesses seeking to invest, expand, and create jobs.<\/p>\n

\u201cBut for long-term credits, that is where we have had a challenge as a country, and that is what the businesses need,\u201d he said.<\/p>\n

Mr Badu-Aboagye used manufacturing as a key example, warning that Ghana cannot talk about industrialisation while financing remains largely short-term.<\/p>\n

\u201cIn fact, if you want to set up a manufacturing company and they give you a one-year loan, you cannot even import your machines or prepare your machines, do a test, run before you start repaying,\u201d he explained.<\/p>\n

He argued that a one-year facility does not match the realities of establishing production, installing equipment, and completing test runs before full operations begin.<\/p>\n

He also criticised the absence of moratorium periods that would allow businesses time to stabilise before repayment begins.<\/p>\n

\u201cThey will not give you a moratorium for you to pay,\u201d he said.<\/p>\n

Mr Badu-Aboagye maintained that the lack of long-term financing continues to hold back businesses, especially those that require heavy investment before returns can be realised.<\/p>\n

\u201cSo what we are saying is that the difficulty is long-term,\u201d he noted.<\/p>\n

He said the issue has persisted for years and continues to affect the growth trajectory of many businesses.<\/p>\n

\u201cBut for the long-term credit, it has been a challenge all this time,\u201d he said.<\/p>\n

The GNCCI CEO\u2019s comments come amid ongoing calls for reforms in Ghana\u2019s credit system, as businesses struggle with high borrowing costs, tight repayment timelines and limited patient capital for expansion.<\/p>\n

Mr Badu-Aboagye insists the conversation must move beyond simply saying businesses need credit and focus on the quality, structure and duration of lending.<\/p>\n

\u201cSo the clarity is for the long term,\u201d he said, arguing that long-term credit is what will allow businesses to invest properly, expand sustainably and contribute meaningfully to national development.<\/p>\n<\/div>\n

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The Ghana National Chamber of Commerce and Industry (GNCCI) CEO, Mark Badu-Aboagye, has criticised Ghana\u2019s banking sector for an unhealthy preference for short-term loans.<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[16478,319,2093,1900,1883,10,9,16479],"tags":[],"class_list":["post-114288","post","type-post","status-publish","format-standard","hentry","category-bank-lending","category-economy","category-ghana-national-chamber-of-commerce-and-industry-gncci","category-hp-news-2","category-national","category-politics","category-popular","category-short-term-loan"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/114288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=114288"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/114288\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=114288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=114288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=114288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}