Sunyani: Women engaged in small-scale businesses in Sunyani, the Bono Regional capital, have called for government intervention to reduce the high interest rates, which they claim are prohibiting their ability to access credit facilities needed to expand their activities. The Bank of Ghana recently raised its benchmark monetary policy rate by 100 basis points to 28 percent on March 28, 2025, following three consecutive meetings without changes. This decision was influenced by concerns regarding the inflation outlook and the nation's annual consumer inflation.
According to Ghana News Agency, women traders expressed their concerns about the 28 percent interest rate, describing it as high during an interview in Sunyani on the implementation of the Post COVID-19 Skills Development and Productivity Enhancement Project (PSDPEP). The high interest rates make it difficult for many traders to access loans, which are crucial for opening and expanding their economic activities. The PSDPEP project, a beneficiary and implementer initiative by the government, aims to build health-related skills in higher education, restore livelihoods, strengthen communication, and create jobs among youth and women in Ghana.
The African Development Bank (AfDB) has allocated $30 million under the project, with $4 million expected to be distributed to Small and Medium Enterprises as loans at a reduced rate, aiding them in overcoming the pandemic's economic impact. However, women traders expressed their unawareness of the facility and voiced concerns over the challenges they face in securing loans from major banks due to lengthy paperwork processes.
Madam Agnes Akua Badu, owner of the 'Oman Dehyia' Cosmetics shop at the Sunyani 'Masommasom' daily market, remarked, "Our problem is the interest rates, as for the loans some of us can easily apply and get." She highlighted that banks often deduct processing fees from small loans, preventing borrowers from obtaining the desired amount. Despite the current situation, she remains hopeful that the government's actions, amidst the Ghana cedi's gains, will lead to a reduction in interest rates.
Similarly, Mad Ajara Dauda, a porridge seller near the Sunyani Penwkasi Traffic Light, stated, "We access the loans from the banks, we end up using all our profits to pay back the loan, and that is impeding the growth of our businesses." She expressed hope that the government would provide support through available facilities.
Mad Gloria Agyekum, a dealer in women's underwear at the Masommasom market, also noted the challenges posed by high interest rates and unfavorable payment agreements from banks. She compared accessing loans from private financial institutions, citing that a GHC20,000 loan requires a weekly repayment of about GHC1,200 for six months, which is difficult given the current poor sales environment. Mrs. Agyekum urged government intervention, stating, "We can't go to the banks because the interest rate there is too much."
