Chamber of Commerce to establish Credit Union for SMEs

Chamber of Commerce to establish Credit Union for SMEs
Source: Ghana | Charles Ayitey | JoyBusiness
Date: 22-08-2019 Time: 06:08:12:pm
President of the Ghana Chamber of Commerce, Dr Nana Appiagyei Dankawoso 1

The Ghana Chamber of Commerce and Industry (GNCCI) has resolved to establish a credit union aimed at providing facilities to SMEs under flexible payment terms and low-interest rates.

President of the Chamber, Dr Nana Appiagyei Dankawoso 1 disclosed this to Joy Business at the sidelines of a capacity building workshop by the Chamber.

Speaking at a capacity building workshop for entrepreneurs, Dr Nana Appiagyei Dankawoso 1 said the move is to give SMEs the wherewithal to remain a force in the African market.

According to him, “the credit union is needed to equip business both in Ghana and elsewhere with the capital they need to emerge in the Ghanaian or African market. What this means is that there will be an opportunity to get these loans with low-interest rates”.

Senior Lecturer and Leader of Small Business and Entrepreneurship Research Group at the Liverpool John Moores University explained Dr Isaac Oduro Amoako said, “the need for SMEs and entrepreneurs to recognize business opportunities and generate excellent business ideas to remain on top of the competition.”

Small and medium-sized enterprises (SMEs) have been the backbone of Ghana’s economic and social development for the past decades. They are the major driving force for business development, employment creation, production of goods and services and internal income generation in Ghana.

SMEs are seen by most analysts as the productive drivers of economic growth and development worldwide, and particularly in Africa.

In Ghana, they contribute about 70 per cent to Ghana’s Gross Domestic Product (GDP) and account for 92 per cent of businesses in the country. However, difficulty in accessing funds – brought on by poor record-keeping, lack of collateral, and the reluctance of universal banks to design products for this all-important sector – has served to constrain their growth.

The capacity-building workshop saw a cross-section of entrepreneurs and business heads receive business advisory services on best ways to establish a business, hire workers and access finance.