The Ministry for Trade and Industry has declared war, not on foreign retailers this time but, on high interest rates in the country.

The sector minister, Ekwow Spio-Garbrah says his outfit has begun discussions with the Central Bank and other stakeholders to help adjust the rates.

He was speaking at a breakfast meeting jointly organized by Graphic Business and Fidelity Bank to discuss how SMEs can contribute to economic development.

Mr. Spio-Garbrah said high interest rates were negatively affecting businesses in the country.

He added that the disparity between savings and lending rates are the reason for high interest rates in the country.

“There are very few countries in the world where the spread between savings rate and lending rate is about 20%. That is where the problem is. That is why we have a very low savings to GDP ratio in Ghana.

“Most people do not save because there is no benefit to savings. About 28 banks and yet, savings rate is below 5%. If you make a mistake and put dollars that you have in the bank, that is zero.”