The Business Strategy Manager of Business and Commercial Banking at Stanbic Bank Ghana has urged Ghanaian banks to find innovative ways to support women-led businesses, especially in the face of current economic challenges.

Dr Kweku Arthur-Annobil said this during a multi-stakeholder engagement on enabling resilient women-led businesses in Ghana.

Speaking on a panel discussion on the subject, Dr Arthur-Annobil emphasized the crucial role banks must play in supporting women-led businesses.

He noted that the “Non-Performing Loans (NPL) ratio, which has increased from 15% in early January 2023 to nearly 30%, reflects the lingering effects of the economic difficulties from 2020 and 2021.

"Many businesses, particularly those facing macroeconomic challenges, are unable to repay their loans not due to fraud but because of genuine financial hardships.

"Consequently, banks must innovate to support these businesses while managing liquidity issues and regulatory constraints.”

Highlighting existing beyond-banking initiatives Stanbic Bank has put in place to support women-led businesses, Dr. Arthur-Annobil mentioned partnerships with development financial institutions and fintechs.

Through some of these partnerships, the bank can provide grants and concessionary loans to businesses in difficult times. Additionally, through its Incubator (SB Incubator), the bank has several capacity-building programs tailored towards women-led businesses.

To address the concerns of collateral-baked facilities, the bank supports micro-businesses with its Enterprise Smart Loans, which are collateral-free and focused on cash flows and business behaviour.

Dr Arthur-Annobil also addressed the importance of documentation for securing loans, explaining that it helps banks understand the nature and dynamics of a business to provide better support and advice.

This understanding is crucial for ensuring that the loan is used as intended, ultimately aiding in the business’ success and sustainability.

Emphasizing resilience and growth, Dr. Arthur-Annobil urged businesses to separate their personal and business finances, a lesson reinforced by the COVID-19 pandemic.

He advocated for micro and small businesses to adopt growth-oriented mindsets, leveraging technology to expand without needing physical presence.

This approach, he argued, would enable businesses to withstand economic challenges and thrive in the long term.

Dr Arthur-Annobil further called for banks to embrace innovative solutions and support mechanisms to bolster women-led businesses.

By doing so, banks can contribute significantly to the broader economic transformation and resilience of businesses, particularly in challenging times.

The multi-stakeholder meeting was held as part of ongoing research by Dr Richmond O. Lamptey, a Lecturer at the Cardiff Metropolitan University in Wales.

This research project, titled “Enabling Resilience of Women Businesses During Turbulent Times in Ghana,” is supported by The British Academy and aims to investigate and enhance the resilience of women-owned businesses in Ghana, particularly during economic and social instability.

The meeting brought together various stakeholders, including academics, business leaders, policymakers, and representatives from women's organisations, to discuss strategies, share insights, and collaborate on initiatives that can empower women entrepreneurs and ensure their businesses can withstand and thrive amidst challenges.

The research findings are expected to contribute significantly to policy recommendations and practical solutions that will bolster the resilience and sustainability of women-led enterprises in Ghana.