Speaking during a panel discussion at the opening of National ICT Week, Seth Twum-Akwaboah also stressed that small and medium-sized enterprises need to integrate digital systems to scale operations.

“You may be a performing enterprise but once you go to a bank for loan, they are looking at the whole ecosystem. What percentage of my portfolio has gone out that I didn’t recover? So I must recover it through those of you who are paying They increase the interest rate to cover that because the Bank of Ghana requires them to cover all the loans they give out.

“So part of the reason why cost of capital is high is because people are not performing. Digitalization can help solve some of these problems. Introduce the credit reference bureau and the collateral registry. These are all mechanisms for helping to improve transparency and ensuring that we can track individuals. If you are not performing, deal with it but your non-performance should not affect me to the extent of increasing my rate of interest,” he remarked.

Seth Twum-Akwaboah further proposed a public-private partnership framework where government and industry collaborate to expand digital infrastructure.

Businesses continue to raise concerns over the impact of high interest rates on access to capital, with many pointing to the cost of borrowing as a key barrier to expansion and investment.

Bank of Ghana Governor Dr. Johnson Asiama has indicated that he expects interest rates to ease to single digits before the end of his tenure.

He notes that monetary policy reforms, coupled with efforts to stabilise inflation and maintain exchange rate discipline are expected to create conditions for lower lending costs.