Benjamin Asante Asamoah, Head, Debt and Working Capital at Absa Bank Ghana, has urged individuals and businesses to treat debt as a financial tool that must be used responsibly and linked to clear value creation.

Speaking at the 2026 Citi Business Festival, Mr Asamoah said borrowing can support business growth, asset acquisition and long-term financial progress when it is properly planned and matched with the borrower’s ability to repay.

“Debt can be good, and debt can be bad. It depends on what you are using it for. If you took money for a project that helps you expand a business or acquire a house, that is good debt. Debt becomes beneficial when it is used to acquire assets, expand businesses or support projects that generate future returns,” he said.

Mr Asamoah noted that lenders assess several factors before approving loans, including the purpose of the borrowing, the borrower’s repayment capacity and credit history.

“Every loan you repay today is, in essence, an investment into your financial credibility tomorrow. Maintaining a good credit history is essential, as it demonstrates a borrower’s willingness and ability to repay obligations over time,” he said.

He cautioned against repeatedly borrowing to repay existing loans, describing it as an unsustainable practice that can deepen financial pressure and create long-term difficulties.

“Continually borrowing to repay existing loans is an unsustainable approach that can create severe, long-term financial difficulties. Instead, individuals and businesses must focus on improving their financial credibility and reducing their overall risk profile to access more favourable borrowing terms,” he said.

Touching on debt restructuring, Mr Asamoah encouraged borrowers facing repayment challenges to engage their financial institutions early. He said that early engagement allows banks and clients to assess the situation and, where possible, consider appropriate repayment options.

He added that disciplined debt management, proper financial records and consistent repayment behaviour can improve a borrower’s credibility and strengthen future access to finance.

The Citi Business Festival is organised by Citi FM and Channel One TV, in partnership with Absa Bank.

The month-long initiative brings together business leaders, entrepreneurs and industry experts for conversations on financial literacy, business growth and enterprise development.