Captain (Rtd.) Prince Kofi Amoabeng has cautioned that the government cannot leave the financing of a critical sector as the industry to the just the whims and caprices of the profit-oriented financial sector.
He observes that Africa and Ghana’s socio-economic development will continue to crawl until the continent deliberately funds the people who make things, such as the manufacturers, processors, and builders who drive real economic transformation.
The former army captain and business leader made this case when he was speaking on Channel One TV’s Point of View with Bernard Avle.
The former founder of UT Bank agrees that Ghana and Africa’s biggest limitation is not a lack of talent, but a chronic lack of support for industrialists who attempt to manufacture shoes, clothes, machinery, food products, and other essentials.
For him, such a critical sector requires critical attention.
Why Industrialization Needs a Different Kind of Money
The entrepreneur explains that industrial projects operate on long timelines and require what economists describe as “long-term patient capital.” These are funds that are willing to wait years before returns start to show.
He notes that while banks readily support buying and selling because of quick turnaround, factory projects face realities that commercial loans simply cannot accommodate.
The problems inherent in the industrial sector make it unattractive for banks to finance projects in that space.
“The problem is that there are too many challenges in there,” he remarked.
He continued, “Because you have maybe a two-year plan to finish a plant and things like that, and then something happens and it stalls and it goes to four or five. again, the banks are not too comfortable, but you need to devote some funds to go into those areas.”
This means factories take time to build. Machines require a huge upfront investment. Raw materials need a stable supply. And when setbacks such as power issues, import delays, policy changes, among others, occur, manufacturers suffer the hardest blows.
That is why, Amoabeng stressed, industrialization cannot rely on the same funding model used for commerce.
The Missing Link: A Deliberate Policy for Makers
Kofi Amoabeng says the government must intentionally direct long-term financing toward industrialists the same way other countries do.
He said UT Bank, during its years of operation, attempted to support some manufacturing ventures, but the risks were enormous because the broader financial ecosystem was not designed to back industry.
He maintains that there is a need for a deliberate policy that supports people who want to build factories and plants for industrialization. Without that tailored support, the industry will remain in the hands of foreigners who have access to patient capital.
The Hope: A More Stable Macro Environment
Kofi Amoabeng acknowledges that the government’s recent efforts to stabilize the economy by reducing inflation, lowering interest rates, and anchoring the exchange rate create a better environment for long-term finance.
He admits that once interest rates fall and the cedi stabilizes, the incentive to keep buying Treasury Bills reduces. Such an environment will also help the financial sector to direct more money into long-term ventures.
But macro stability alone is not enough, he stressed. What Ghana needs is an intentional, structured plan to channel money into manufacturing.
“The government is tackling all the essential things to ensure that we can develop and grow businesses long-term, whatever. But it takes a bit of time for people to appreciate it and to believe in it,” he noted.
The Bottomline
As many development analysts have argued, the services cannot transform a country whose people need factories, not just offices. This is because the industrial sectors are what create material things needed to survive and also provide sustainable employment.
Ghana, he says, has the talent. It has the ambition. What it lacks is the courage to fund industrialization deliberately and consistently.
Until that changes, the continent will keep consuming what others produce and exporting its potential along with it.
