A leading figure in the Movement for Change, Solomon Owusu, has warned that Ghana’s economic recovery efforts risk stalling unless urgent steps are taken to address the country’s persistently high interest rates, which he says continue to choke the private sector.
Speaking on a business news programme on July 26, Owusu acknowledged progress made by the current administration in stabilising inflation and fiscal indicators but argued that such gains are yet to trickle down to benefit ordinary Ghanaians, particularly unemployed youth.
“The clarion call is that the youth are looking for job, but you don’t create jobs by only focusing on government employment. The government can only absorb about 700,000 people. The majority of jobs must come from the private sector.” he said.
Owusu pointed to Ghana’s lending rates currently over 23% as a major barrier to business growth, especially when compared to neighboring francophone countries like Togo, where rates are below 5%.
“We are talking about interest rates of over 23%. Meanwhile, in Togo and other francophone countries, rates are below 5%. How do we expect our private sector to compete?” he asked.
He called for a deliberate shift in economic policy that prioritizes affordable credit for the private sector, stressing that such a move is critical for stimulating enterprise, job creation, and reducing youth unemployment.
Finance Expert Applauds Support for Indigenous Banks
Meanwhile, Professor Godfred Bokpin, a finance expert at the University of Ghana, offered a more optimistic view of the government’s recent steps to strengthen local banking institutions. He lauded Finance Minister Dr. Cassiel Ato Forson for steering efforts to enhance indigenous banks’ capacity and drive inclusive economic growth.
“If you look at the board composition and the direction they are giving in terms of the state or indigenous banks, I think that is commendable and we need to do more,” Prof. Bokpin said.
He underscored the strategic importance of Ghana Commercial Bank (GCB) in particular, calling for the bank to be repositioned as a financial powerhouse capable of supporting large-scale investments over the next five years.
“In the next five years, GCB must have the balance sheet to handle big-ticket transactions. Without that, we cannot achieve the kind of economic transformation we envision as a country,” he stated.
Prof. Bokpin further urged the government to move beyond rhetoric and back state-owned financial institutions like GCB and the National Investment Bank (NIB) with actionable policy support and capital investments.
Both speakers’ comments reinforce a growing sentiment among private sector actors and economists: that Ghana’s path to sustainable development hinges not just on macroeconomic stability, but on practical measures that enable private enterprise to thrive.
